NASDAQ:ACIW stands out as a growth opportunity that won't break the bank.

ACI WORLDWIDE INC (NASDAQ:ACIW) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:ACIW is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Understanding NASDAQ:ACIW's Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:ACIW, the assigned 7 reflects its growth potential:

• 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.
• Based on estimates for the next years, ACIW will show a very strong growth in Earnings Per Share. The EPS will grow by 25.22% on average per year.
• The Revenue is expected to grow by 8.05% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Analysis for NASDAQ:ACIW

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:ACIW has received a 6 out of 10:

• ACIW's Price/Earnings ratio is a bit cheaper when compared to the industry. ACIW is cheaper than 76.73% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, ACIW is valued a bit cheaper than 70.55% of the companies in the same industry.
• Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaper than 89.45% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, ACIW is valued cheaply inside the industry as 85.45% 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 decent 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 25.22% in the coming years.

Understanding NASDAQ:ACIW's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ACIW has achieved a 5 out of 10:

• An Altman-Z score of 3.54 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.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ACIW, the assigned 7 is a significant indicator of profitability:

• ACIW has a Return On Assets of 7.34%. This is amongst the best in the industry. ACIW outperforms 81.82% of its industry peers.
• The Return On Equity of ACIW (17.09%) is better than 85.45% of its industry peers.
• With an excellent Return On Invested Capital value of 11.33%, ACIW belongs to the best of the industry, outperforming 87.64% 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.
• With a decent Profit Margin value of 14.04%, ACIW is doing good in the industry, outperforming 80.00% of the companies in the same industry.
• In the last couple of years the Profit Margin of ACIW has grown nicely.
• ACIW has a better Operating Margin (22.20%) than 89.82% of its industry peers.
• ACIW's Operating Margin has improved in the last couple of years.

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

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

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.