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

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.

Key Considerations for Quality Investors.

• ACI WORLDWIDE INC has demonstrated significant revenue growth over the past 5 years, with a 7.54% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 37.21%, 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.
• The Debt/Free Cash Flow Ratio of ACI WORLDWIDE INC stands at 3.56, 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.
• The Profit Quality (5-year) of ACI WORLDWIDE INC stands at 163.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• ACI WORLDWIDE INC has experienced impressive EBIT growth over the past 5 years, with 11.69% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• The EBIT 5-year growth of ACI WORLDWIDE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

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.

ACIW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. ACIW scores excellent on profitability, but there are some minor concerns on its financial health. ACIW is not valued too expensively and it also shows a decent growth rate.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.