NICE

NICE Ltd - ADR

TMT


Presented:10/01/2020
Price:$230.70
Cap:$14.47B
Current Price:$177.72
Cap:$11.17B

Presented

Date10/01/2020
Price$230.70
Market Cap$14.47B
Ent Value$11.93B
P/E Ratio72.43x
Book Value$36.79
Div Yield0%
Shares O/S62.73M
Ave Daily Vol263,641
Short IntN/A

Current

Price$177.72
Market Cap$11.17B
NICE Ltd. engages in the provision of enterprise software solutions and services. It operates through the following segments: Customer Interactions Solutions, Security Solutions, and Financial Crime and Compliance Solutions. The Customer Interactions Solutions segment provides suites such as compliance and risk, workforce optimization, operational efficiency, customer experience, and sales and retention. The Security Solutions segment offers suites including incident debriefing and investigation; public safety emergency response optimization; video surveillance and analytics; situation management; and intelligence and law enforcement. The Financial Crime and Compliance Solutions segment includes for enterprise risk management, anti-money laundering, fraud prevention, and brokerage compliance services. The company was founded on September 28, 1986 and is headquartered in Raanana, Israel.

Publicly traded companies mentioned herein: Avaya Holdings Corp (AVYA), Cisco Systems Inc (CSCO), Five9 Inc (FIVN), Nice Ltd (NICE)

Highlights

The presenter is long shares of Nice Ltd (NICE), a provider of contact center software based in Israel. The company’s technology helps route calls to the correct representative so that they can manage the specific case, and also provide a solution that helps call center supervisors oversee the rest of the center. Historically, NICE has been a HSD% top line grower, but as their cloud business becomes a larger portion of their business mix, the presenter believes that the company should experience top line growth of 13% - 15%. Their cloud offering, known as CXone, provides a number of applications for call centers including omnichannel routing, analytics, workforce optimization, automation, and AI. In 2016 this offering was only 27% of the business, but should be ~50% of the total mix by 2021. The company currently trades at 6.6x and 17x his CY 2022 revenue and EBITDA, respectively. If things play out as he expects, he sees upside to $360/share and thinks the downside is limited at $220/share. Being a bit more conservative he models his base case at $310/share for ~35% upside in the next 18 - 24 months.

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Idea Discussion

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