ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
NASDAQ:ACIW - Nasdaq - US0044981019 - Common Stock - Currency: USD
ACIW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. ACIW scores excellent on profitability, but there are some minor concerns on its financial health. ACIW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACIW was profitable.
ACIW had a positive operating cash flow in the past year.
Each year in the past 5 years ACIW has been profitable.
Each year in the past 5 years ACIW had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.71%, ACIW belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
The Return On Equity of ACIW (14.26%) is better than 83.39% of its industry peers.
The Return On Invested Capital of ACIW (10.68%) is better than 87.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACIW is below the industry average of 11.63%.
The last Return On Invested Capital (10.68%) for ACIW is above the 3 year average (8.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 14.26% | ||
| ROIC | 10.68% |
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
ACIW has a better Profit Margin (12.74%) than 78.80% of its industry peers.
In the last couple of years the Profit Margin of ACIW has grown nicely.
ACIW has a better Operating Margin (19.87%) than 87.28% of its industry peers.
ACIW's Operating Margin has improved in the last couple of years.
ACIW has a worse Gross Margin (50.34%) than 68.20% of its industry peers.
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 | 19.87% | ||
| PM (TTM) | 12.74% | ||
| GM | 50.34% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACIW is destroying value.
Compared to 1 year ago, ACIW has less shares outstanding
ACIW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACIW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.90 indicates that ACIW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.90, ACIW is in the better half of the industry, outperforming 61.84% of the companies in the same industry.
ACIW has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as ACIW would need 2.95 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.95, ACIW is in the better half of the industry, outperforming 62.19% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that ACIW is somewhat dependend on debt financing.
ACIW has a worse Debt to Equity ratio (0.62) than 67.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.77
WACC13.8%
2.3 Liquidity
A Current Ratio of 1.64 indicates that ACIW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.64, ACIW is in line with its industry, outperforming 51.24% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that ACIW should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.64, ACIW perfoms like the industry average, outperforming 51.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
ACIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.49%, which is quite impressive.
ACIW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.43% yearly.
ACIW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.76%.
The Revenue has been growing slightly by 4.85% on average over the past years.
EPS 1Y (TTM)86.49%
EPS 3Y24.22%
EPS 5Y29.43%
EPS Q2Q%-3.57%
Revenue 1Y (TTM)9.76%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%-4.94%
3.2 Future
The Earnings Per Share is expected to grow by 2.61% on average over the next years.
The Revenue is expected to grow by 6.84% on average over the next years.
EPS Next Y-7.36%
EPS Next 2Y2.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.52%
Revenue Next 2Y6.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ACIW is valuated quite expensively with a Price/Earnings ratio of 26.25.
74.20% of the companies in the same industry are more expensive than ACIW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.71. ACIW is around the same levels.
Based on the Price/Forward Earnings ratio of 28.34, the valuation of ACIW can be described as expensive.
Based on the Price/Forward Earnings ratio, ACIW is valued a bit cheaper than the industry average as 69.96% of the companies are valued more expensively.
ACIW is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 28.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACIW indicates a rather cheap valuation: ACIW is cheaper than 86.93% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACIW is valued cheaper than 86.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.17 | ||
| EV/EBITDA | 14.62 |
4.3 Compensation for Growth
The excellent profitability rating of ACIW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y2.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ACIW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ACIW (3/6/2025, 11:02:09 AM)
54.34
+0.14 (+0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.84%
Inst Owner Change2.6%
Ins Owners0.83%
Ins Owner Change0.21%
Market Cap5.70B
Analysts78.33
Price Target66.3 (22.01%)
Short Float %2.23%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)79.92%
Min EPS beat(2)78.32%
Max EPS beat(2)81.51%
EPS beat(4)4
Avg EPS beat(4)136.52%
Min EPS beat(4)62.76%
Max EPS beat(4)323.46%
EPS beat(8)7
Avg EPS beat(8)93.88%
EPS beat(12)7
Avg EPS beat(12)56.95%
EPS beat(16)8
Avg EPS beat(16)43.7%
Revenue beat(2)1
Avg Revenue beat(2)4.08%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)9.83%
Revenue beat(4)3
Avg Revenue beat(4)3.51%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)9.83%
Revenue beat(8)5
Avg Revenue beat(8)2.45%
Revenue beat(12)8
Avg Revenue beat(12)1.72%
Revenue beat(16)10
Avg Revenue beat(16)1.23%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.07%
EPS NY rev (1m)0%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 28.34 | ||
| P/S | 3.58 | ||
| P/FCF | 18.17 | ||
| P/OCF | 15.89 | ||
| P/B | 4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.62 |
EPS(TTM)2.07
EY3.81%
EPS(NY)1.92
Fwd EY3.53%
FCF(TTM)2.99
FCFY5.5%
OCF(TTM)3.42
OCFY6.29%
SpS15.2
BVpS13.58
TBVpS-0.57
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 14.26% | ||
| ROCE | 13.07% | ||
| ROIC | 10.68% | ||
| ROICexc | 11.73% | ||
| ROICexgc | 35.85% | ||
| OM | 19.87% | ||
| PM (TTM) | 12.74% | ||
| GM | 50.34% | ||
| FCFM | 19.68% |
ROA(3y)4.89%
ROA(5y)4.17%
ROE(3y)11.78%
ROE(5y)10.33%
ROIC(3y)8.48%
ROIC(5y)7.85%
ROICexc(3y)9.15%
ROICexc(5y)8.42%
ROICexgc(3y)29.24%
ROICexgc(5y)30.02%
ROCE(3y)10.38%
ROCE(5y)9.61%
ROICexcg growth 3Y3.32%
ROICexcg growth 5Y14.4%
ROICexc growth 3Y13.64%
ROICexc growth 5Y19.94%
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%
F-Score7
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 37.33% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 4.51 | ||
| Cash Conversion | 82.02% | ||
| Profit Quality | 154.44% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 3.9 |
F-Score7
WACC13.8%
ROIC/WACC0.77
Cap/Depr(3y)32.29%
Cap/Depr(5y)32.82%
Cap/Sales(3y)2.74%
Cap/Sales(5y)3.03%
Profit Quality(3y)111.61%
Profit Quality(5y)168.18%
High Growth Momentum
Growth
EPS 1Y (TTM)86.49%
EPS 3Y24.22%
EPS 5Y29.43%
EPS Q2Q%-3.57%
EPS Next Y-7.36%
EPS Next 2Y2.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.76%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%-4.94%
Revenue Next Year6.52%
Revenue Next 2Y6.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y42.15%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year69.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y139.94%
FCF growth 3Y21.45%
FCF growth 5Y29.97%
OCF growth 1Y112.89%
OCF growth 3Y17.61%
OCF growth 5Y22.03%