ACI WORLDWIDE INC (ACIW)
US0044981019 - Common Stock
Taking everything into account, ACIW scores 6 out of 10 in our fundamental rating. ACIW was compared to 279 industry peers in the Software industry. ACIW has an excellent profitability rating, but there are some minor concerns on its financial health. ACIW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ACIW had positive earnings in the past year.
In the past year ACIW had a positive cash flow from operations.
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
ACIW's Return On Assets of 7.34% is amongst the best of the industry. ACIW outperforms 81.72% of its industry peers.
ACIW has a Return On Equity of 17.09%. This is amongst the best in the industry. ACIW outperforms 86.02% of its industry peers.
The Return On Invested Capital of ACIW (11.33%) is better than 89.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACIW is below the industry average of 11.54%.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 17.09% | ||
| ROIC | 11.33% |
ROA(3y)4%
ROA(5y)3.24%
ROE(3y)10.45%
ROE(5y)8.66%
ROIC(3y)6.89%
ROIC(5y)6.12%
1.3 Margins
ACIW's Profit Margin of 14.04% is amongst the best of the industry. ACIW outperforms 82.80% of its industry peers.
In the last couple of years the Profit Margin of ACIW has grown nicely.
ACIW has a better Operating Margin (22.20%) than 90.68% of its industry peers.
In the last couple of years the Operating Margin of ACIW has grown nicely.
ACIW's Gross Margin of 52.20% is on the low side compared to the rest of the industry. ACIW is outperformed by 68.10% of its industry peers.
In the last couple of years the Gross Margin of ACIW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.2% | ||
| PM (TTM) | 14.04% | ||
| GM | 52.2% |
OM growth 3Y1.63%
OM growth 5Y3.86%
PM growth 3Y14.2%
PM growth 5Y4.16%
GM growth 3Y-1.13%
GM growth 5Y-2.53%
2. Health
2.1 Basic Checks
ACIW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ACIW remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ACIW has less shares outstanding
ACIW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.69 indicates that ACIW is not in any danger for bankruptcy at the moment.
ACIW has a Altman-Z score of 3.69. This is comparable to the rest of the industry: ACIW outperforms 56.63% of its industry peers.
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.
The Debt to FCF ratio of ACIW (3.56) is better than 62.01% of its industry peers.
ACIW has a Debt/Equity ratio of 0.72. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, ACIW is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 3.69 |
ROIC/WACC0.96
WACC11.74%
2.3 Liquidity
A Current Ratio of 1.56 indicates that ACIW should not have too much problems paying its short term obligations.
ACIW has a Current ratio (1.56) which is in line with its industry peers.
ACIW has a Quick Ratio of 1.56. This is a normal value and indicates that ACIW is financially healthy and should not expect problems in meeting its short term obligations.
ACIW has a Quick ratio of 1.56. This is comparable to the rest of the industry: ACIW outperforms 48.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 163.75% over the past year.
ACIW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.45% yearly.
The Revenue has grown by 13.31% in the past year. This is quite good.
ACIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.54% yearly.
EPS 1Y (TTM)163.75%
EPS 3Y22.76%
EPS 5Y8.45%
EPS Q2Q%120%
Revenue 1Y (TTM)13.31%
Revenue growth 3Y3.92%
Revenue growth 5Y7.54%
Sales Q2Q%24.44%
3.2 Future
Based on estimates for the next years, ACIW will show a very strong growth in Earnings Per Share. The EPS will grow by 37.35% on average per year.
The Revenue is expected to grow by 7.94% on average over the next years.
EPS Next Y43.05%
EPS Next 2Y31.55%
EPS Next 3Y37.35%
EPS Next 5YN/A
Revenue Next Year9.44%
Revenue Next 2Y8.23%
Revenue Next 3Y7.94%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.41, the valuation of ACIW can be described as expensive.
ACIW's Price/Earnings ratio is a bit cheaper when compared to the industry. ACIW is cheaper than 76.70% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. ACIW is around the same levels.
The Price/Forward Earnings ratio is 29.01, which means the current valuation is very expensive for ACIW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACIW indicates a somewhat cheap valuation: ACIW is cheaper than 69.89% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. ACIW is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.41 | ||
| Fwd PE | 29.01 |
4.2 Price Multiples
87.81% of the companies in the same industry are more expensive than ACIW, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACIW indicates a rather cheap valuation: ACIW is cheaper than 85.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.94 | ||
| EV/EBITDA | 13.81 |
4.3 Compensation for Growth
The 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 37.35% in the coming years.
PEG (NY)0.61
PEG (5Y)3.13
EPS Next 2Y31.55%
EPS Next 3Y37.35%
5. Dividend
5.1 Amount
ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ACI WORLDWIDE INC
NASDAQ:ACIW (11/21/2024, 8:10:35 PM)
After market: 55.72 0 (0%)55.72
+0.99 (+1.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.84B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.41 | ||
| Fwd PE | 29.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.61
PEG (5Y)3.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 17.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.2% | ||
| PM (TTM) | 14.04% | ||
| GM | 52.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)163.75%
EPS 3Y22.76%
EPS 5Y
EPS Q2Q%
EPS Next Y43.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.31%
Revenue growth 3Y3.92%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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