NICE Ltd. NICE

NICE looks like a real compounder: a sticky, mission‑critical platform with 73% of revenue now in recurring cloud, 111% net revenue retention, double‑digit ROIC trending up, and FCF that was 29% of sales in 2024. The big swing factor is AI—already growing fast at +42% ARR but still early as a mix of revenue—which, combined with sovereign‑cloud and public‑sector wins, can power multi‑year expansion if execution stays tight. The bear case is about hyperscaler/CRM bundling and AI compute costs capping margins, plus timing risk on big programs and integrations. With a near net‑cash balance sheet, expanding margins, and a market price well below a reasonable intrinsic value range, the setup offers quality and asymmetry—provided NICE continues to out‑execute and turns today’s AI promise into durable, high‑margin revenue.