NICE

NICE Ltd - ADR

TMT


Presented:04/30/2021
Price:$241.23
Cap:$15.23B
Current Price:$177.72
Cap:$11.17B

Presented

Date04/30/2021
Price$241.23
Market Cap$15.23B
Ent Value$18.24B
P/E Ratio76.42x
Book Value$40.67
Div Yield0%
Shares O/S63.12M
Ave Daily Vol351,379
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., nd 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), Five9 Inc (FIVN), Morgan Stanley (MS), Nice Ltd (NICE), Okta Inc (OKTA), UBS Group AG (UBS)

Highlights

The presenter is long shares of Nice Ltd (NICE), a $15B global software company, that offers enterprise software solutions through two segments: Customer Engagement and Financial Crime and Compliance. As a market leader in Contact-Center-as-a-Service (CCaaS), the presenter believes that NICE is uniquely positioned to benefit from a market that’s expected to grow 4x in the next five years. NICE’s CCaaS business comprises 50% of total revenue (growing at 30% a year), yet the company is only trading at 9x next year’s revenue. He notes that NICE is not getting any credit for its CCaaS business, seeing as the number two player in the space FIVN is currently trading at 22x revenue. A more appropriate multiple, that would give NICE credit for its mid-teens% top line growth, would be 28x EBITDA, which would imply 70% upside over the next two years. 

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