Looking for growth without the hefty price tag? Consider NASDAQ:ACIW.

Last update: Dec 3, 2024

Our stock screener has spotted ACI WORLDWIDE INC (NASDAQ:ACIW) as a growth stock which is not overvalued. NASDAQ:ACIW is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Deciphering NASDAQ:ACIW's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:ACIW has received a 7 out of 10:

The Earnings Per Share has grown by an impressive 163.75% over the past year.
The Earnings Per Share has been growing by 8.45% on average over the past years. This is quite good.
ACIW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.31%.
The Earnings Per Share is expected to grow by 32.82% on average over the next years. This is a very strong growth
ACIW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.02% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Valuation Analysis for NASDAQ:ACIW

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:ACIW, the assigned 7 reflects its valuation:

Compared to the rest of the industry, the Price/Earnings ratio of ACIW indicates a somewhat cheap valuation: ACIW is cheaper than 77.34% of the companies listed in the same industry.
Based on the Price/Forward Earnings ratio, ACIW is valued a bit cheaper than the industry average as 71.58% of the companies are valued more expensively.
87.05% of the companies in the same industry are more expensive than ACIW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ACIW is valued cheaply inside the industry as 86.69% of the companies are valued more expensively.
ACIW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ACIW may justify a higher PE ratio.
ACIW's earnings are expected to grow with 32.82% in the coming years. This may justify a more expensive valuation.

Health Insights: NASDAQ:ACIW

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ACIW, the assigned 5 reflects its health status:

An Altman-Z score of 3.77 indicates that ACIW is not in any danger for bankruptcy at the moment.
The Debt to FCF ratio of ACIW is 3.56, which is a good value as it means it would take ACIW, 3.56 years of fcf income to pay off all of its debts.
ACIW's Debt to FCF ratio of 3.56 is fine compared to the rest of the industry. ACIW outperforms 61.51% of its industry peers.

Understanding NASDAQ:ACIW's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:ACIW, the assigned 8 is noteworthy for profitability:

With an excellent Return On Assets value of 7.34%, ACIW belongs to the best of the industry, outperforming 81.30% of the companies in the same industry.
With an excellent Return On Equity value of 17.09%, ACIW belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
ACIW has a better Return On Invested Capital (11.33%) than 87.77% of its industry peers.
The 3 year average ROIC (6.89%) for ACIW is below the current ROIC(11.33%), indicating increased profibility in the last year.
ACIW has a Profit Margin of 14.04%. This is amongst the best in the industry. ACIW outperforms 82.01% of its industry peers.
In the last couple of years the Profit Margin of ACIW has grown nicely.
Looking at the Operating Margin, with a value of 22.20%, ACIW belongs to the top of the industry, outperforming 90.29% of the companies in the same industry.
ACIW's Operating Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of ACIW for a complete fundamental analysis.

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.