ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
USA - NASDAQ:ACIW - US0044981019 - Common Stock
45.66 USD
-0.66 (-1.42%)
45.66 USD
0 (0%)
ACIW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. While ACIW belongs to the best of the industry regarding profitability, 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.
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
ACIW has a Return On Assets of 8.25%. This is amongst the best in the industry. ACIW outperforms 80.07% 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 85.41% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.16%, ACIW belongs to the top of the industry, outperforming 87.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACIW is below the industry average of 12.04%.
The last Return On Invested Capital (12.16%) for ACIW is above the 3 year average (8.48%), which is a sign of increasing profitability.
| 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
The Profit Margin of ACIW (15.07%) is better than 78.29% of its industry peers.
ACIW's Profit Margin has improved in the last couple of years.
ACIW has a better Operating Margin (20.83%) than 87.19% of its industry peers.
In the last couple of years the Operating Margin of ACIW has grown nicely.
ACIW has a worse Gross Margin (49.67%) than 69.39% of its industry peers.
ACIW's Gross Margin has been stable in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
ACIW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ACIW has less shares outstanding
Compared to 5 years ago, ACIW has less shares outstanding
The debt/assets ratio for ACIW is higher compared to a year ago.
2.2 Solvency
ACIW has an Altman-Z score of 3.57. This indicates that ACIW is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.57, ACIW is doing good in the industry, outperforming 66.19% of the companies in the same industry.
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.
ACIW has a better Debt to FCF ratio (3.02) than 64.77% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that ACIW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, ACIW is not doing good in the industry: 65.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.09
WACC11.13%
2.3 Liquidity
A Current Ratio of 1.58 indicates that ACIW should not have too much problems paying its short term obligations.
ACIW's Current ratio of 1.58 is in line compared to the rest of the industry. ACIW outperforms 48.75% of its industry peers.
A Quick Ratio of 1.58 indicates that ACIW should not have too much problems paying its short term obligations.
ACIW has a Quick ratio of 1.58. This is comparable to the rest of the industry: ACIW outperforms 49.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.54% over the past year.
ACIW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.49% yearly.
Looking at the last year, ACIW shows a small growth in Revenue. The Revenue has grown by 7.01% in the last year.
The Revenue has been growing slightly by 4.85% on average over the past years.
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 12.22% 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 6.19% on average per year.
EPS Next Y22.45%
EPS Next 2Y16.39%
EPS Next 3Y12.22%
EPS Next 5YN/A
Revenue Next Year8.49%
Revenue Next 2Y7.67%
Revenue Next 3Y6.19%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.41, which indicates a rather expensive current valuation of ACIW.
75.09% of the companies in the same industry are more expensive than ACIW, based on the Price/Earnings ratio.
ACIW is valuated rather cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
ACIW is valuated rather expensively with a Price/Forward Earnings ratio of 17.55.
Based on the Price/Forward Earnings ratio, ACIW is valued a bit cheaper than 75.09% of the companies in the same industry.
ACIW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 17.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaply inside the industry as 86.12% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACIW indicates a rather cheap valuation: ACIW is cheaper than 82.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.37 | ||
| EV/EBITDA | 12.11 |
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.
ACIW has an outstanding profitability rating, which may justify a higher PE ratio.
ACIW's earnings are expected to grow with 12.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)0.67
EPS Next 2Y16.39%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
No dividends for ACIW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
45.66
-0.66 (-1.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.55%
Inst Owner Change4.76%
Ins Owners0.49%
Ins Owner Change7.41%
Market Cap4.71B
Revenue(TTM)1.73B
Net Income(TTM)260.88M
Analysts81.54
Price Target63.26 (38.55%)
Short Float %3.32%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)16.84%
Min EPS beat(2)7.62%
Max EPS beat(2)26.05%
EPS beat(4)4
Avg EPS beat(4)73.09%
Min EPS beat(4)7.62%
Max EPS beat(4)202.37%
EPS beat(8)8
Avg EPS beat(8)96.21%
EPS beat(12)10
Avg EPS beat(12)79.13%
EPS beat(16)10
Avg EPS beat(16)55.53%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)1.63%
Max Revenue beat(2)3.39%
Revenue beat(4)3
Avg Revenue beat(4)2.39%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)6.21%
Revenue beat(8)6
Avg Revenue beat(8)2.89%
Revenue beat(12)9
Avg Revenue beat(12)2.88%
Revenue beat(16)12
Avg Revenue beat(16)2.05%
PT rev (1m)0.1%
PT rev (3m)0.1%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)-13.14%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 17.55 | ||
| P/S | 2.72 | ||
| P/FCF | 16.37 | ||
| P/OCF | 14.39 | ||
| P/B | 3.19 | ||
| P/tB | 211.78 | ||
| EV/EBITDA | 12.11 |
EPS(TTM)2.48
EY5.43%
EPS(NY)2.6
Fwd EY5.7%
FCF(TTM)2.79
FCFY6.11%
OCF(TTM)3.17
OCFY6.95%
SpS16.78
BVpS14.33
TBVpS0.22
PEG (NY)0.82
PEG (5Y)0.67
Graham Number28.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 17.64% | ||
| ROCE | 14.88% | ||
| ROIC | 12.16% | ||
| ROICexc | 13.25% | ||
| ROICexgc | 38.39% | ||
| OM | 20.83% | ||
| PM (TTM) | 15.07% | ||
| GM | 49.67% | ||
| FCFM | 16.62% |
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%
ROICexgc growth 3Y3.32%
ROICexgc 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-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.02 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 44.63% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 5.92 | ||
| Cash Conversion | 72.82% | ||
| Profit Quality | 110.3% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 3.57 |
F-Score8
WACC11.13%
ROIC/WACC1.09
Cap/Depr(3y)34.27%
Cap/Depr(5y)34.01%
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)17.54%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%14.29%
EPS Next Y22.45%
EPS Next 2Y16.39%
EPS Next 3Y12.22%
EPS Next 5YN/A
Revenue 1Y (TTM)7.01%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%6.78%
Revenue Next Year8.49%
Revenue Next 2Y7.67%
Revenue Next 3Y6.19%
Revenue Next 5YN/A
EBIT growth 1Y0.42%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year74.82%
EBIT Next 3Y24.59%
EBIT Next 5YN/A
FCF growth 1Y258.35%
FCF growth 3Y21.45%
FCF growth 5Y29.97%
OCF growth 1Y163.72%
OCF growth 3Y17.61%
OCF growth 5Y22.03%
ACI WORLDWIDE INC / ACIW FAQ
What is the fundamental rating for ACIW stock?
ChartMill assigns a fundamental rating of 6 / 10 to ACIW.
What is the valuation status of ACI WORLDWIDE INC (ACIW) stock?
ChartMill assigns a valuation rating of 7 / 10 to ACI WORLDWIDE INC (ACIW). This can be considered as Undervalued.
What is the profitability of ACIW stock?
ACI WORLDWIDE INC (ACIW) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ACIW stock?
The Price/Earnings (PE) ratio for ACI WORLDWIDE INC (ACIW) is 18.41 and the Price/Book (PB) ratio is 3.19.
What is the financial health of ACI WORLDWIDE INC (ACIW) stock?
The financial health rating of ACI WORLDWIDE INC (ACIW) is 5 / 10.