Is NASDAQ:ACIW suited for quality investing?

In this article we will dive into ACI WORLDWIDE INC (NASDAQ:ACIW) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ACI WORLDWIDE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into ACI WORLDWIDE INC's Quality Metrics.

• Over the past 5 years, ACI WORLDWIDE INC has experienced impressive revenue growth, with 7.54% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 29.98%, ACI WORLDWIDE INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• ACI WORLDWIDE INC maintains a healthy Debt/Free Cash Flow Ratio of 4.96, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 163.0%, ACI WORLDWIDE INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• ACI WORLDWIDE INC has consistently achieved strong EBIT growth over the past 5 years, with a 11.69% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, ACI WORLDWIDE INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What else is there to say on the fundamentals of NASDAQ:ACIW?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to ACIW. ACIW was compared to 277 industry peers in the Software industry. While ACIW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ACIW has a correct valuation and a medium growth rate.

Our latest full fundamental report of ACIW contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.