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NIC

Nasdaq:EGOV
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EGOV
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Software
Company description

NIC Inc., together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States. The last earnings update was 48 days ago. More info.


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  • NIC has significant price volatility in the past 3 months.
EGOV Share Price and Events
7 Day Returns
11.4%
NasdaqGS:EGOV
4.3%
US IT
2.4%
US Market
1 Year Returns
40.1%
NasdaqGS:EGOV
-1.2%
US IT
-10%
US Market
EGOV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NIC (EGOV) 11.4% 39.9% 8% 40.1% 15.6% 32.7%
US IT 4.3% -10% -15.6% -1.2% 59.3% 77.7%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • EGOV outperformed the IT industry which returned -1.2% over the past year.
  • EGOV outperformed the Market in United States of America which returned -10% over the past year.
Price Volatility
EGOV
Industry
5yr Volatility vs Market

Value

 Is NIC undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NIC to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NIC.

NasdaqGS:EGOV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:EGOV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
IT Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.934 (1 + (1- 21%) (0.69%))
0.959
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.959 * 5.44%)
6.96%

Discounted Cash Flow Calculation for NasdaqGS:EGOV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NIC is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:EGOV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.96%)
2020 70.25 Analyst x1 65.68
2021 78.93 Analyst x1 69.00
2022 85.27 Est @ 8.03% 69.69
2023 90.50 Est @ 6.14% 69.16
2024 94.87 Est @ 4.82% 67.78
2025 98.56 Est @ 3.9% 65.84
2026 101.77 Est @ 3.25% 63.56
2027 104.61 Est @ 2.8% 61.08
2028 107.21 Est @ 2.48% 58.53
2029 109.63 Est @ 2.26% 55.96
Present value of next 10 years cash flows $646.00
NasdaqGS:EGOV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $109.63 × (1 + 1.74%) ÷ (6.96% – 1.74%)
$2,138.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,138.16 ÷ (1 + 6.96%)10
$1,091.37
NasdaqGS:EGOV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $646.00 + $1,091.37
$1,737.37
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,737.37 / 67.83
$25.61
NasdaqGS:EGOV Discount to Share Price
Calculation Result
Value per share (USD) From above. $25.61
Current discount Discount to share price of $23.69
= -1 x ($23.69 - $25.61) / $25.61
7.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price NIC is available for.
Intrinsic value
8%
Share price is $23.69 vs Future cash flow value of $25.61
Current Discount Checks
For NIC to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • NIC's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • NIC's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NIC's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NIC's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:EGOV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.75
NasdaqGS:EGOV Share Price ** NasdaqGS (2020-04-07) in USD $23.69
United States of America IT Industry PE Ratio Median Figure of 71 Publicly-Listed IT Companies 24.84x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NIC.

NasdaqGS:EGOV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:EGOV Share Price ÷ EPS (both in USD)

= 23.69 ÷ 0.75

31.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NIC is overvalued based on earnings compared to the US IT industry average.
  • NIC is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does NIC's expected growth come at a high price?
Raw Data
NasdaqGS:EGOV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
11.7%per year
United States of America IT Industry PEG Ratio Median Figure of 60 Publicly-Listed IT Companies 1.89x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

NasdaqGS:EGOV PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.76x ÷ 11.7%

2.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NIC is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NIC's assets?
Raw Data
NasdaqGS:EGOV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $3.67
NasdaqGS:EGOV Share Price * NasdaqGS (2020-04-07) in USD $23.69
United States of America IT Industry PB Ratio Median Figure of 116 Publicly-Listed IT Companies 2.88x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NasdaqGS:EGOV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:EGOV Share Price ÷ Book Value per Share (both in USD)

= 23.69 ÷ 3.67

6.45x

* Primary Listing of NIC.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NIC is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess NIC's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. NIC has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is NIC expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NIC expected to grow at an attractive rate?
  • NIC's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • NIC's earnings growth is positive but not above the United States of America market average.
  • NIC's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:EGOV Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:EGOV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 11.7%
NasdaqGS:EGOV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 8%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:EGOV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:EGOV Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 416 86 62 4
2020-12-31 386 77 53 4
2020-04-08
NasdaqGS:EGOV Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 354 72 50
2019-09-30 346 79 50
2019-06-30 342 69 51
2019-03-31 343 62 54
2018-12-31 345 70 58
2018-09-30 350 66 59
2018-06-30 347 69 57
2018-03-31 340 69 53
2017-12-31 337 65 51
2017-09-30 331 70 54
2017-06-30 327 71 56
2017-03-31 323 76 56

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NIC's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).
  • NIC's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:EGOV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from NIC Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:EGOV Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.92 0.95 0.88 4.00
2020-12-31 0.79 0.80 0.77 4.00
2020-04-08
NasdaqGS:EGOV Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.75
2019-09-30 0.75
2019-06-30 0.77
2019-03-31 0.81
2018-12-31 0.87
2018-09-30 0.88
2018-06-30 0.86
2018-03-31 0.79
2017-12-31 0.77
2017-09-30 0.82
2017-06-30 0.85
2017-03-31 0.85

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • NIC is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess NIC's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NIC has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has NIC performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NIC's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NIC's year on year earnings growth rate has been positive over the past 5 years.
  • NIC's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • NIC's 1-year earnings growth is negative, it can't be compared to the US IT industry average.
Earnings and Revenue History
NIC's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NIC Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:EGOV Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 354.21 49.88 59.45
2019-09-30 345.78 49.77 58.65
2019-06-30 342.42 51.15 58.45
2019-03-31 343.36 53.68 57.35
2018-12-31 344.90 57.64 56.69
2018-09-30 349.72 58.64 55.74
2018-06-30 347.23 56.79 53.14
2018-03-31 340.06 52.62 52.27
2017-12-31 336.51 51.14 50.78
2017-09-30 331.38 53.92 49.76
2017-06-30 327.22 56.13 49.35
2017-03-31 322.70 56.42 47.38
2016-12-31 317.92 55.34 47.06
2016-09-30 310.73 50.72 45.35
2016-06-30 305.41 47.26 44.25
2016-03-31 300.41 45.51 43.90
2015-12-31 292.38 41.59 43.10
2015-09-30 287.24 40.91 41.42
2015-06-30 281.72 38.54 41.24
2015-03-31 277.06 38.26 40.27
2014-12-31 272.10 38.69 38.94
2014-09-30 266.87 36.60 26.57
2014-06-30 258.67 31.38 34.46
2014-03-31 253.45 31.15 36.18
2013-12-31 249.28 31.71 37.98
2013-09-30 244.73 34.12 45.67
2013-06-30 236.61 35.00 36.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NIC has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • NIC used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • NIC's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NIC's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NIC has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is NIC's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NIC's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NIC is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NIC's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NIC's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are -1.7604739828377E+17x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NIC Company Filings, last reported 3 months ago.

NasdaqGS:EGOV Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 245.93 0.00 214.38
2019-09-30 239.91 0.00 209.28
2019-06-30 229.34 0.00 186.54
2019-03-31 218.90 0.00 180.56
2018-12-31 211.69 0.00 191.70
2018-09-30 205.87 0.00 181.03
2018-06-30 193.52 0.00 172.73
2018-03-31 180.35 0.00 162.36
2017-12-31 168.24 0.00 160.78
2017-09-30 161.61 0.00 152.30
2017-06-30 151.86 0.00 135.39
2017-03-31 142.78 0.00 123.56
2016-12-31 133.90 0.00 127.01
2016-09-30 161.84 0.00 151.43
2016-06-30 144.23 0.00 128.10
2016-03-31 129.61 0.00 105.78
2015-12-31 115.81 0.00 98.39
2015-09-30 142.24 0.00 122.44
2015-06-30 127.92 0.00 107.41
2015-03-31 114.99 0.00 92.10
2014-12-31 104.14 0.00 87.98
2014-09-30 127.20 0.00 105.96
2014-06-30 114.83 0.00 95.66
2014-03-31 102.25 0.00 81.60
2013-12-31 91.94 0.00 74.25
2013-09-30 108.05 0.00 90.93
2013-06-30 102.00 0.00 80.69
  • NIC's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if NIC's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • NIC has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess NIC's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NIC has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is NIC's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.52%
Current annual income from NIC dividends. Estimated to be 1.52% next year.
If you bought $2,000 of NIC shares you are expected to receive $30 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • NIC's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.93%).
  • NIC's dividend is below the markets top 25% of dividend payers in United States of America (5.46%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:EGOV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:EGOV Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.36 1.00
2020-12-31 0.36 1.00
2020-04-08
NasdaqGS:EGOV Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-20 0.360 1.861
2020-01-29 0.360 1.744
2019-10-30 0.320 1.423
2019-07-31 0.320 1.546
2019-01-30 0.320 1.911
2018-08-01 0.320 2.261
2018-05-01 0.320 2.013
2018-02-22 0.320 2.288
2018-01-31 0.320 2.358
2017-11-01 0.320 1.908
2017-05-03 0.320 1.787
2017-05-02 0.320 1.519
2017-05-01 0.320 1.494
2016-11-03 0.970 4.274
2016-02-23 0.550 2.677
2016-02-04 0.550 3.146
2015-11-05 0.550 2.806
2014-10-28 0.500 2.823
2013-10-29 0.350 1.834
2012-11-08 0.250 1.393
2012-05-01 0.250 1.910
2012-04-30 0.250 2.200
2011-10-26 0.250 2.001
2010-12-06 0.250 2.191
2010-05-03 0.300 4.059
2010-02-04 0.300 3.988
2009-11-05 0.300 3.400
2009-08-07 0.300 3.587
2009-08-06 0.300 3.832
2009-05-05 0.300 4.476
2009-05-04 0.300 5.236

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of NIC's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess NIC's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NIC afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NIC has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of NIC's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Harry Herington
COMPENSATION $2,420,154
AGE 59
TENURE AS CEO 12.2 years
CEO Bio

Mr. Harry H. Herington has been the Chairman of the Board at NIC Inc. since May 6, 2008 and as its Chief Executive Officer since February 4, 2008. Mr. Herington also serves as the President of National Information Consortium USA Inc., a subsidiary of NIC Inc. since 1998. He served as President of NIC Inc. since May 2006 until February 2008. He served as the Chief Operating Officer of NIC Inc. since May 2002 until October 2006. He served as Executive Vice President of Portal Operations of NIC Inc.’s from January 1999 to April 2002. He served as the Vice President of Kansas Information Consortium Inc. from September 1995 to September 1996. Prior to joining NIC Inc., he served as an Associate General Counsel for the League of Kansas Municipalities from August 1992 to September 1995. He has been a Director of NIC Inc. since October 2006 and served as one of NIC Inc.’s Directors from May 1998 to February 1999. Mr. Herington serves as a Director of E-Filing.com Inc. He holds a B.S. degree from Wichita State University in Kansas and a JD degree from the University of Kansas School of Law.

CEO Compensation
  • Harry's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Harry's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the NIC management team in years:

3.9
Average Tenure
52.5
Average Age
  • The tenure for the NIC management team is about average.
Management Team

Harry Herington

TITLE
Chairman of the Board & CEO
COMPENSATION
$2M
AGE
59
TENURE
12.2 yrs

Stephen Kovzan

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
50
TENURE
12.7 yrs

William Van Asselt

TITLE
General Counsel & Secretary
COMPENSATION
$507K
AGE
44
TENURE
4.3 yrs

Jayne Holland

TITLE
Chief Security Officer
COMPENSATION
$949K
AGE
55
TENURE
13.3 yrs

Doug Rogers

TITLE
Senior Vice President of Business Development
COMPENSATION
$578K
AGE
43
TENURE
2.5 yrs

Brian Anderson

TITLE
Chief Technology Officer
TENURE
1 yrs

Angie Davids

TITLE
Senior Vice President of Marketing & Communications
TENURE
0.6 yrs

Ron Thornburgh

TITLE
Vice President of Digital Government & Advocacy
COMPENSATION
$521K
AGE
56
TENURE
3.5 yrs

Liz Thomas

TITLE
Vice President of Finance Operations
Board of Directors Tenure

Average tenure and age of the NIC board of directors in years:

10.7
Average Tenure
59
Average Age
  • The average tenure for the NIC board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Art Burtscher

TITLE
Lead Independent Director
COMPENSATION
$177K
AGE
68
TENURE
12.2 yrs

Harry Herington

TITLE
Chairman of the Board & CEO
COMPENSATION
$2M
AGE
59
TENURE
11.9 yrs

Sandy Kemper

TITLE
Independent Director
COMPENSATION
$164K
AGE
53
TENURE
12.4 yrs

Bill Lyons

TITLE
Independent Director
COMPENSATION
$162K
AGE
63
TENURE
10.7 yrs

Pete Wilson

TITLE
Independent Director
COMPENSATION
$156K
AGE
85
TENURE
20.8 yrs

Brad Henry

TITLE
Independent Director
COMPENSATION
$156K
AGE
56
TENURE
8.5 yrs

Raji Arasu

TITLE
Independent Director
COMPENSATION
$158K
AGE
49
TENURE
4.9 yrs

Jay Vijayan

TITLE
Independent Director
COMPENSATION
$159K
AGE
46
TENURE
1.8 yrs

Tony Scott

TITLE
Independent Director
COMPENSATION
$158K
AGE
67
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. Aug 19 Sell William Lyons Individual 29. Aug 19 29. Aug 19 -10,000 $20.96 $-209,585
X
Management checks
We assess NIC's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NIC has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why You Might Be Interested In NIC Inc. (NASDAQ:EGOV) For Its Upcoming Dividend

We need to see whether the dividend is covered by earnings and if it's growing. … It's encouraging to see that the dividend is covered by both profit and cash flow. … We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and NIC is halfway there.

Simply Wall St -

Don't Ignore The Fact That This Insider Just Sold Some Shares In NIC Inc. (NASDAQ:EGOV)

View our latest analysis for NIC NIC Insider Transactions Over The Last Year In fact, the recent sale by Independent Director William Lyons was not their only sale of NIC shares this year. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. … We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

Simply Wall St -

Investors Who Bought NIC (NASDAQ:EGOV) Shares A Year Ago Are Now Up 16%

(NASDAQ:EGOV) share price is up 16% in the last year, clearly besting than the market return of around -3.3% (not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … We note that for NIC the TSR over the last year was 19%, which is better than the share price return mentioned above.

Simply Wall St -

How Should Investors React To NIC Inc.'s (NASDAQ:EGOV) CEO Pay?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for NIC How Does Harry Herington's Compensation Compare With Similar Sized Companies? … A first glance this seems like a real positive for shareholders, since Harry Herington is paid less than the average total compensation paid by similar sized companies.

Simply Wall St -

What Is NIC's (NASDAQ:EGOV) P/E Ratio After Its Share Price Rocketed?

A Limitation: P/E Ratios Ignore Debt and Cash In The Bank The 'Price' in P/E reflects the market capitalization of the company. … The recent drop in earnings per share might keep value investors away, but the relatively strong balance sheet will allow the company time to invest in growth. … As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So this free visualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold.

Simply Wall St -

NIC Inc. (NASDAQ:EGOV) Delivered A Better ROE Than Its Industry

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for NIC: 25% = US$54m ÷ US$219m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Do You Like NIC Inc. (NASDAQ:EGOV) At This P/E Ratio?

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for NIC: P/E of 21.25 = $17.13 ÷ $0.81 (Based on the year to March 2019.) Is A High P/E Ratio Good? … A higher P/E ratio means that buyers have to pay a higher price for each $1 the company has earned over the last year. … Earnings growth means that in the future the 'E' will be higher.

Simply Wall St -

Is There Now An Opportunity In NIC Inc. (NASDAQ:EGOV)?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … However, given that NIC’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

Imagine Owning NIC (NASDAQ:EGOV) And Wondering If The 17% Share Price Slide Is Justified

(NASDAQ:EGOV) shareholders, since the share price is down 17% in the last three years, falling well short of the market return of around 42%. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … As well as measuring the share price return, investors should also consider the total shareholder return (TSR).

Simply Wall St -

NIC Inc. (NASDAQ:EGOV): Has Recent Earnings Growth Beaten Long-Term Trend?

Today I will assess EGOV's recent performance announced on 31 December 2018 and evaluate these figures to its long-term trend and industry movements. … How Did EGOV's Recent Performance Stack Up Against Its Past. … EGOV's trailing twelve-month earnings (from 31 December 2018) of US$58m has.

Simply Wall St -

Company Info

Description

NIC Inc., together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States. Its portals consist websites and applications that enable businesses and citizens to access government information through online channels, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. The company’s portal service offerings include motor vehicle driver history record retrieval; vehicle title, lien, and registration; motor vehicle inspections; temporary vehicle tags; driver’s license renewal; hunting and fishing licenses; health professional license services; professional license renewal; business registrations and renewals; secretary of state business searches; Uniform Commercial Code (UCC) searches and filings; limited criminal history searches; court services; vital records; income and property tax payments; and payment processing products and services. Its software & services business provides software development, payment processing, and other digital government services to state and local governments, as well as federal agencies. In addition, the company develops and manages the pre-employment screening program for motor carriers using transaction-based business model. Further, it offers application development and portal management services to governments. NIC Inc. was founded in 1991 and is based in Olathe, Kansas.

Details
Name: NIC Inc.
EGOV
Exchange: NasdaqGS
Founded: 1991
$1,606,901,796
67,830,384
Website: http://www.egov.com
Address: NIC Inc.
25501 West Valley Parkway,
Suite 300,
Olathe,
Kansas, 66061,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS EGOV Common Stock Nasdaq Global Select US USD 15. Jul 1999
DB NAI Common Stock Deutsche Boerse AG DE EUR 15. Jul 1999
LSE 0K48 Common Stock London Stock Exchange GB USD 15. Jul 1999
Number of employees
Current staff
Staff numbers
1,000
NIC employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 06:07
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/02/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.