Should you consider ACI WORLDWIDE INC (NASDAQ:ACIW) for quality investing?

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.

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.
• ACI WORLDWIDE INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 37.21% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• ACI WORLDWIDE INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.56, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 11.69%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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.

What is the full fundamental picture of NASDAQ:ACIW telling us.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to ACIW. ACIW was compared to 278 industry peers in the Software industry. While ACIW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: ACIW is growing strongly while it also seems undervalued. This makes ACIW very considerable for value and growth investing!

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.