In the world of growth stocks, NASDAQ:ACIW shines as a value proposition.

Our stock screener has singled out ACI WORLDWIDE INC (NASDAQ:ACIW) as an attractive growth opportunity. NASDAQ:ACIW is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Analysis for NASDAQ:ACIW

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:ACIW boasts 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.
• The Revenue has grown by 13.31% in the past year. This is quite good.
• 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.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:ACIW scores a 6 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of ACIW indicates a somewhat cheap valuation: ACIW is cheaper than 75.99% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, ACIW is valued a bit cheaper than 70.61% of the companies in the same industry.
• 88.89% 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 86.74% 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.
• ACIW has an outstanding profitability rating, which 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 Analysis for NASDAQ:ACIW

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ACIW has received a 5 out of 10:

• An Altman-Z score of 3.61 indicates that ACIW is not in any danger for bankruptcy at the moment.
• ACIW has a debt to FCF ratio of 3.56. This is a good value and a sign of high solvency as ACIW would need 3.56 years to pay back of all of its debts.
• The Debt to FCF ratio of ACIW (3.56) is better than 61.29% of its industry peers.

What does the Profitability looks like for NASDAQ:ACIW

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ACIW scores a 8 out of 10:

• ACIW has a Return On Assets of 7.34%. This is amongst the best in the industry. ACIW outperforms 81.36% of its industry peers.
• The Return On Equity of ACIW (17.09%) is better than 84.95% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 11.33%, ACIW belongs to the top of the industry, outperforming 88.17% of the companies in the same industry.
• The last Return On Invested Capital (11.33%) for ACIW is above the 3 year average (6.89%), which is a sign of increasing profitability.
• The Profit Margin of ACIW (14.04%) is better than 81.36% 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 90.32% of the companies in the same industry.
• In the last couple of years the Operating Margin of ACIW has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ACIW

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.