Taking everything into account, ACIW scores 6 out of 10 in our fundamental rating. ACIW was compared to 278 industry peers in the Software industry. ACIW scores excellent on profitability, but there are some minor concerns on its financial health. ACIW may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ACIW suitable for value investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ACIW had positive earnings in the past year.
ACIW had a positive operating cash flow in the past year.
ACIW had positive earnings in each of the past 5 years.
In the past 5 years ACIW always reported a positive cash flow from operatings.

1.2 Ratios

ACIW has a Return On Assets of 8.25%. This is amongst the best in the industry. ACIW outperforms 80.94% of its industry peers.
Looking at the Return On Equity, with a value of 17.64%, ACIW belongs to the top of the industry, outperforming 85.61% of the companies in the same industry.
ACIW has a Return On Invested Capital of 12.16%. This is amongst the best in the industry. ACIW outperforms 88.13% of its industry peers.
ACIW had an Average Return On Invested Capital over the past 3 years of 8.48%. This is below the industry average of 10.76%.
The 3 year average ROIC (8.48%) for ACIW is below the current ROIC(12.16%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	8.25%
ROE	17.64%
ROIC	12.16%

ROA(3y)4.89%

ROA(5y)4.17%

ROE(3y)11.78%

ROE(5y)10.33%

ROIC(3y)8.48%

ROIC(5y)7.85%

1.3 Margins

Looking at the Profit Margin, with a value of 15.07%, ACIW is in the better half of the industry, outperforming 77.70% of the companies in the same industry.
In the last couple of years the Profit Margin of ACIW has grown nicely.
With an excellent Operating Margin value of 20.83%, ACIW belongs to the best of the industry, outperforming 87.05% of the companies in the same industry.
In the last couple of years the Operating Margin of ACIW has grown nicely.
With a Gross Margin value of 49.67%, ACIW is not doing good in the industry: 70.86% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ACIW has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	20.83%
PM (TTM)	15.07%
GM	49.67%

OM growth 3Y6.84%

OM growth 5Y11.36%

PM growth 3Y10.97%

PM growth 5Y19.03%

GM growth 3Y-1.94%

GM growth 5Y-0.23%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACIW is creating some value.
The number of shares outstanding for ACIW has been reduced compared to 1 year ago.
The number of shares outstanding for ACIW has been reduced compared to 5 years ago.
Compared to 1 year ago, ACIW has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.51 indicates that ACIW is not in any danger for bankruptcy at the moment.
The Altman-Z score of ACIW (3.51) is better than 66.19% of its industry peers.
The Debt to FCF ratio of ACIW is 3.02, which is a good value as it means it would take ACIW, 3.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ACIW (3.02) is better than 64.39% of its industry peers.
ACIW has a Debt/Equity ratio of 0.56. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
ACIW's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. ACIW is outperformed by 67.27% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.56
Debt/FCF	3.02
Altman-Z	3.51

ROIC/WACC1.09

WACC11.14%

2.3 Liquidity

ACIW has a Current Ratio of 1.58. This is a normal value and indicates that ACIW is financially healthy and should not expect problems in meeting its short term obligations.
ACIW's Current ratio of 1.58 is in line compared to the rest of the industry. ACIW outperforms 47.84% of its industry peers.
ACIW has a Quick Ratio of 1.58. This is a normal value and indicates that ACIW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.58, ACIW is in line with its industry, outperforming 48.56% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.58
Quick Ratio	1.58

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.54% over the past year.
The Earnings Per Share has been growing by 27.49% on average over the past years. This is a very strong growth
ACIW shows a small growth in Revenue. In the last year, the Revenue has grown by 7.01%.
ACIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.85% yearly.

EPS 1Y (TTM)17.54%

EPS 3Y21.14%

EPS 5Y27.49%

EPS Q2Q%14.29%

Revenue 1Y (TTM)7.01%

Revenue growth 3Y5.17%

Revenue growth 5Y4.85%

Sales Q2Q%6.78%

3.2 Future

The Earnings Per Share is expected to grow by 14.85% on average over the next years. This is quite good.
Based on estimates for the next years, ACIW will show a small growth in Revenue. The Revenue will grow by 7.95% on average per year.

EPS Next Y24.76%

EPS Next 2Y16.39%

EPS Next 3Y14.85%

EPS Next 5YN/A

Revenue Next Year9.42%

Revenue Next 2Y8.16%

Revenue Next 3Y7.95%

Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 18.02, ACIW is valued on the expensive side.
ACIW's Price/Earnings ratio is a bit cheaper when compared to the industry. ACIW is cheaper than 76.98% of the companies in the same industry.
ACIW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
With a Price/Forward Earnings ratio of 17.19, ACIW is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACIW indicates a somewhat cheap valuation: ACIW is cheaper than 78.06% of the companies listed in the same industry.
ACIW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	18.02
Fwd PE	17.19

4.2 Price Multiples

85.25% of the companies in the same industry are more expensive than ACIW, based on the Enterprise Value to EBITDA ratio.
ACIW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ACIW is cheaper than 83.45% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	16.01
EV/EBITDA	11.76

4.3 Compensation for Growth

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 14.85% in the coming years. This may justify a more expensive valuation.