42.99 USD
-0.5 (-1.15%)
42.99 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ACIW. ACIW was compared to 277 industry peers in the Software industry. ACIW has an excellent profitability rating, 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!
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 has a better Return On Assets (8.25%) than 80.87% of its industry peers.
- With an excellent Return On Equity value of 17.64%, ACIW belongs to the best of the industry, outperforming 85.56% of the companies in the same industry.
- ACIW's Return On Invested Capital of 12.16% is amongst the best of the industry. ACIW outperforms 88.09% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ACIW is below the industry average of 10.78%.
- 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 77.62% of its industry peers.
- In the last couple of years the Profit Margin of ACIW has grown nicely.
- ACIW has a Operating Margin of 20.83%. This is amongst the best in the industry. ACIW outperforms 87.00% of its industry peers.
- ACIW's Operating Margin has improved in the last couple of years.
- ACIW's Gross Margin of 49.67% is on the low side compared to the rest of the industry. ACIW is outperformed by 70.76% 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
- 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.
- ACIW has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ACIW is higher compared to a year ago.
2.2 Solvency
- ACIW has an Altman-Z score of 3.45. This indicates that ACIW is financially healthy and has little risk of bankruptcy at the moment.
- ACIW's Altman-Z score of 3.45 is fine compared to the rest of the industry. ACIW outperforms 65.70% 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 64.62% of its industry peers.
- A Debt/Equity ratio of 0.56 indicates that ACIW is somewhat dependend on debt financing.
- ACIW has a worse Debt to Equity ratio (0.56) than 67.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.09
WACC11.18%
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 has a Current ratio of 1.58. This is comparable to the rest of the industry: ACIW outperforms 47.65% of its industry peers.
- A Quick Ratio of 1.58 indicates that ACIW should not have too much problems paying its short term obligations.
- The Quick ratio of ACIW (1.58) is comparable to the rest of the industry.
| 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.
- The Earnings Per Share has been growing by 27.49% on average over the past years. This is a very strong growth
- 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
- Based on estimates for the next years, ACIW will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.12% on average per year.
- Based on estimates for the next years, ACIW will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
EPS Next Y25.02%
EPS Next 2Y16.65%
EPS Next 3Y15.12%
EPS Next 5YN/A
Revenue Next Year9.35%
Revenue Next 2Y5.74%
Revenue Next 3Y5.64%
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.
- 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
- ACIW is valuated rather expensively with a Price/Earnings ratio of 17.33.
- Based on the Price/Earnings ratio, ACIW is valued a bit cheaper than 76.53% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. ACIW is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 16.45 indicates a correct valuation of ACIW.
- ACIW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ACIW is cheaper than 79.78% 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 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.33 | ||
| Fwd PE | 16.45 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaply inside the industry as 85.56% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ACIW is valued cheaply inside the industry as 84.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.4 | ||
| EV/EBITDA | 11.34 |
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.
- ACIW has an outstanding profitability rating, which may justify a higher PE ratio.
- ACIW's earnings are expected to grow with 15.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)0.63
EPS Next 2Y16.65%
EPS Next 3Y15.12%
5. Dividend
5.1 Amount
- ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
42.99
-0.5 (-1.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-25 2026-02-25/amc
Inst Owners101.2%
Inst Owner Change1.88%
Ins Owners0.64%
Ins Owner Change2.59%
Market Cap4.43B
Revenue(TTM)1.73B
Net Income(TTM)260.88M
Analysts84.62
Price Target66.94 (55.71%)
Short Float %4.17%
Short Ratio5.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)5.78%
PT rev (3m)5.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.33 | ||
| Fwd PE | 16.45 | ||
| P/S | 2.56 | ||
| P/FCF | 15.4 | ||
| P/OCF | 13.53 | ||
| P/B | 3 | ||
| P/tB | 199.2 | ||
| EV/EBITDA | 11.34 |
EPS(TTM)2.48
EY5.77%
EPS(NY)2.61
Fwd EY6.08%
FCF(TTM)2.79
FCFY6.49%
OCF(TTM)3.18
OCFY7.39%
SpS16.79
BVpS14.35
TBVpS0.22
PEG (NY)0.69
PEG (5Y)0.63
Graham Number28.3
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 | 3.45 |
F-Score8
WACC11.18%
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 Y25.02%
EPS Next 2Y16.65%
EPS Next 3Y15.12%
EPS Next 5YN/A
Revenue 1Y (TTM)7.01%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%6.78%
Revenue Next Year9.35%
Revenue Next 2Y5.74%
Revenue Next 3Y5.64%
Revenue Next 5YN/A
EBIT growth 1Y0.42%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year73.27%
EBIT Next 3Y26.31%
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 for 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.
What is the valuation of ACI WORLDWIDE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ACI WORLDWIDE INC (ACIW) is 17.33 and the Price/Book (PB) ratio is 3.