3 Reasons NIC Has Explosive Upside Potential

Since July 2021, the S&P 500 has delivered a total return of 73.1%. But one standout stock has nearly doubled the market - over the past five years, Nicolet Bankshares has surged 136% to $164.67 per share. Its momentum hasn’t stopped as it’s also gained 26.4% in the last six months thanks to its solid quarterly results, beating the S&P by 17.1%.

Since July 2021, the S&P 500 has delivered a total return of 73.1%. But one standout stock has nearly doubled the market - over the past five years, Nicolet Bankshares has surged 136% to $164.67 per share. Its momentum hasn't stopped as it's also gained 26.4% in the last six months thanks to its solid quarterly results, beating the S&P by 17.1%.

Is now still a good time to buy NIC? Or is this a case of a company fueled by heightened investor enthusiasm? Find out in our full research report, it's free.

Why Is Nicolet Bankshares a Good Business? Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares (NYSE:NIC) is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota. 1.

Net Interest Income Skyrockets, Fueling Growth Opportunities Net interest income commands greater market attention due to its reliability and consistency, whereas one-time fees are often seen as lower-quality revenue that lacks the same dependable characteristics. Nicolet Bankshares's net interest income has grown at a 21.9% annualized rate over the last five years, much better than the broader banking industry and faster than its total revenue. 2. Increasing Net Interest Margin Juices Financials Net interest margin (NIM) represents how much a bank earns in relation to its outstanding loans.

It's one of the most important metrics to track because it shows how a bank's loans are performing and whether it has the ability to command higher premiums for its services. Over the past two years, Nicolet Bankshares's net interest margin averaged 3.6%, climbing by 65 basis points (100 basis points = 1 percentage point) over that period. This expansion was a tailwind for its net interest income, and while prevailing interest rates matter the most for industry net interest margins, banks that consistently increase this figure generally boast higher-earning loan books (all else equal such as the risk of those loans) or provide differentiated services that give them the ability to charge higher rates (pricing power).

3. Growing TBVPS Reflects Strong Asset Base For banks, tangible book value per share (TBVPS) is a crucial metric that measures the actual value of shareholders' equity, stripping out goodwill and other intangible assets that may not be recoverable in a worst-case scenario. Nicolet Bankshares's TBVPS increased by 10.2% annually over the last five years, and growth has recently accelerated as TBVPS grew at an excellent 17% annual clip over the past two years (from $43.28 to $59.21 per share).