Despite its growth, NASDAQ:ACIW remains within the realm of affordability.

Consider ACI WORLDWIDE INC (NASDAQ:ACIW) as an affordable growth stock, identified by our stock screening tool. NASDAQ:ACIW is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

A Closer Look at Growth for NASDAQ:ACIW

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:ACIW was assigned a score of 7 for growth:

• ACIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 163.75%, which is quite impressive.
• Measured over the past years, ACIW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.45% on average per year.
• 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 24.63% on average over the next years. This is a very strong growth
• Based on estimates for the next years, ACIW will show a quite strong growth in Revenue. The Revenue will grow by 8.02% on average per year.
• 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.

Analyzing Valuation Metrics

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 6 reflects its valuation:

• 78.14% of the companies in the same industry are more expensive than ACIW, based on the Price/Earnings ratio.
• Based on the Price/Forward Earnings ratio, ACIW is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
• Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaply inside the industry as 89.25% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, ACIW is valued cheaply inside the industry as 88.17% 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.
• A more expensive valuation may be justified as ACIW's earnings are expected to grow with 24.63% in the coming years.

Health Assessment of NASDAQ:ACIW

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:ACIW, the assigned 5 for health provides valuable insights:

• ACIW has an Altman-Z score of 3.60. This indicates that ACIW is financially healthy and has little risk of 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 has a Debt to FCF ratio of 3.56. This is in the better half of the industry: ACIW outperforms 61.65% of its industry peers.

Profitability Examination for NASDAQ:ACIW

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ACIW has achieved a 8:

• ACIW has a better Return On Assets (7.34%) than 81.36% of its industry peers.
• Looking at the Return On Equity, with a value of 17.09%, ACIW belongs to the top of the industry, outperforming 85.30% of the companies in the same industry.
• ACIW has a Return On Invested Capital of 11.33%. This is amongst the best in the industry. ACIW outperforms 87.81% 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 82.08% of its industry peers.
• ACIW's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 22.20%, ACIW belongs to the top of the industry, outperforming 89.96% of the companies in the same industry.
• In the last couple of years the Operating Margin of ACIW has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

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.