Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ACI WORLDWIDE INC (NASDAQ:ACIW) is suited for quality investing. Investors should of course do their own research, but we spotted ACI WORLDWIDE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
Why NASDAQ:ACIW may be interesting for quality investors.
ACI WORLDWIDE INC has achieved substantial revenue growth over the past 5 years, with a 7.54% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
With a notable ROIC excluding cash and goodwill at 34.19%, 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.
With a Debt/Free Cash Flow Ratio of 4.08, ACI WORLDWIDE INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
ACI WORLDWIDE INC exhibits impressive Profit Quality (5-year) with a 163.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
With a robust 5-year EBIT growth of 11.69%, ACI WORLDWIDE INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
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.
Fundamental analysis of NASDAQ:ACIW
As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.
Overall ACIW gets a fundamental rating of 6 out of 10. We evaluated ACIW against 285 industry peers in the Software industry. ACIW has an excellent profitability rating, but there are some minor concerns on its financial health. ACIW has a decent growth rate and is not valued too expensively.
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.