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TelegramNIC Inc. Financial Ratios 2020-2011 | EGOV
Brief overview of NIC Inc.'s market valuation
The review covers five available annual periods spanning 2016 to 2020.
The current valuation set is P/E 26.25x (median 26.25x), EV/EBITDA 15.38x (median 15.33x), P/S 3.91x (median 3.85x). The multiple basket looks neutral against its history, differing from median levels by roughly +0.4%.
The inverse P/E implies an earnings yield of 3.8%. This is not a dividend yield, but current earnings relative to market price.
Capital efficiency is characterized by ROE 23.4%, ROA 14.8%, ROCE 28.5%. Returns on capital and assets point to efficient economics and a strong internal source of growth.
On PEG (0.71x), valuation is restrained relative to growth, but one ratio cannot replace cash-flow and risk analysis.
The cash conversion cycle shortened from 139.4 days to 77.8 days, or 61.6 days. Working capital returns faster.
Overall picture
NIC Inc. trades near its familiar ratio range. A new earnings or profitability trend is needed to change the view.
Annual Financial Ratios NIC Inc.
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
|---|---|---|---|---|---|---|---|---|---|---|
P/E |
26.2 | 27.1 | 16.2 | 21.6 | 29.2 | 30.9 | 27.4 | 43.9 | 40.2 | 34.5 |
P/S |
3.9 | 3.9 | 2.7 | 3.3 | 5.1 | 4.4 | 3.9 | 5.6 | 5.0 | 4.4 |
EV/EBITDA |
15.4 | 15.3 | 8.9 | 11.2 | 17.8 | 15.8 | 13.6 | 21.9 | 20.0 | 16.8 |
PEG |
0.71 | -1.88 | 1.3 | -2.71 | 0.91 | 4.46 | 1.29 | 2.1 | 2.88 | 1.44 |
P/B |
6.1 | 5.5 | 4.4 | 6.6 | 12.2 | 11.2 | 10.3 | 15.3 | 13.4 | 12.2 |
P/CF |
35.3 | 24.5 | 18.0 | 19.7 | 23.2 | 28.6 | 24.1 | 43.1 | 71.0 | 32.9 |
ROE % |
23.40 | 20.51 | 27.53 | 30.68 | 41.70 | 36.25 | 37.51 | 34.85 | 33.37 | 35.25 |
ROA % |
14.77 | 13.92 | 18.76 | 17.45 | 23.18 | 17.40 | 22.57 | 17.80 | 18.15 | 15.89 |
ROCE % |
28.54 | 23.85 | 33.90 | 44.35 | 55.19 | 56.05 | 57.80 | 54.40 | 52.47 | 57.92 |
DSO |
123.3 | 88.0 | 85.6 | 112.7 | 95.0 | 100.3 | 77.1 | 77.3 | 95.5 | 99.5 |
DPO |
102.0 | 107.1 | 107.5 | 161.9 | 143.6 | 128.5 | 93.9 | 96.8 | 123.9 | 151.1 |
All numbers in USD currency
Multiples are an important financial analysis tool for the company NIC Inc., allowing investors and analysts to quickly assess the company’s value and investment attractiveness based on the ratio of market indicators to the company’s financial performance. Essentially, multiples express how the market values the company relative to its earnings, revenue, equity, or other key metrics.
Advantages of Using Financial Ratios- Simplified Data Analysis
Financial ratios transform large volumes of accounting data into compact and easily interpretable indicators, significantly simplifying the assessment of the company’s condition. - Comparability Between Companies
Multiples standardize financial metrics, enabling objective comparison of companies of different sizes, industries, and market capitalizations. - Identification of Trends and Issues
Regular analysis of ratios helps track the dynamics of financial health, identify strengths and weaknesses of the business, as well as potential risks. - Decision Support
Financial multiples serve as an important tool for investors, creditors, and company management in making investment, credit, and managerial decisions. - Accelerated Assessment of Investment Attractiveness
Ratios allow quick determination of key performance, liquidity, and financial stability indicators, facilitating prompt evaluation of companies’ attractiveness for investments.
Using multiples enables comparison between companies, even if they differ in size or industry, as they standardize financial data into ratios convenient for analysis. This is especially useful for evaluating companies where direct analysis of financial statements may be complex or require in-depth knowledge.
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