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.
Looking into the quality metrics of ACI WORLDWIDE INC
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.
ACI WORLDWIDE INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 34.19% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
The Debt/Free Cash Flow Ratio of ACI WORLDWIDE INC stands at 4.08, 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.
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.
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 has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.
A complete fundamental analysis of NASDAQ:ACIW
At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.
Taking everything into account, ACIW scores 5 out of 10 in our fundamental rating. ACIW was compared to 282 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.
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.