Why the quality investor may take a look at ACI WORLDWIDE INC (NASDAQ:ACIW).

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.

Highlighting Notable Quality Metrics of NASDAQ:ACIW.

• 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 robust ROIC excluding cash and goodwill at 29.98%, ACI WORLDWIDE INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of ACI WORLDWIDE INC stands at 4.96, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• 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.
• ACI WORLDWIDE INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and 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 284 industry peers in the Software industry. ACIW scores excellent on profitability, but there are some minor concerns on its financial health. ACIW has a decent growth rate and is not valued too expensively.

For an up to date full fundamental analysis you can check the fundamental report of ACIW

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.