ACIW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 278 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ACIW. These ratings would make ACIW suitable for value investing!

Quickly go to:

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.
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

Looking at the Return On Assets, with a value of 8.25%, ACIW belongs to the top of the industry, outperforming 80.94% of the companies in the same industry.
With an excellent Return On Equity value of 17.64%, ACIW belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.16%, ACIW belongs to the best of the industry, outperforming 88.13% 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 10.74%.
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

With a decent Profit Margin value of 15.07%, ACIW is doing good in 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.
ACIW has a Operating Margin of 20.83%. This is amongst the best in the industry. ACIW outperforms 87.05% of its industry peers.
ACIW's Operating Margin has improved in the last couple of years.
The Gross Margin of ACIW (49.67%) is worse than 70.86% 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	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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.
The number of shares outstanding for ACIW has been reduced compared to 1 year ago.
Compared to 5 years ago, ACIW has less shares outstanding
Compared to 1 year ago, ACIW has a worse debt to assets ratio.

2.2 Solvency

ACIW has an Altman-Z score of 3.49. This indicates that ACIW is financially healthy and has little risk of bankruptcy at the moment.
ACIW has a better Altman-Z score (3.49) than 65.47% 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.
A Debt/Equity ratio of 0.56 indicates that 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	3.49

ROIC/WACC1.09

WACC11.16%

2.3 Liquidity

A Current Ratio of 1.58 indicates that ACIW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.58, ACIW perfoms like the industry average, outperforming 47.84% of the companies in the same industry.
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.
With a Quick ratio value of 1.58, ACIW perfoms like the industry average, outperforming 48.56% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.58
Quick Ratio	1.58

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

ACIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.54%, which is quite good.
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.
ACIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.95% yearly.

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

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.75, 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.
When comparing the Price/Earnings ratio of ACIW to the average of the S&P500 Index (27.21), we can say ACIW is valued slightly cheaper.
ACIW is valuated correctly with a Price/Forward Earnings ratio of 16.93.
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.
When comparing the Price/Forward Earnings ratio of ACIW to the average of the S&P500 Index (25.98), we can say ACIW is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	17.75
Fwd PE	16.93

4.2 Price Multiples

ACIW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACIW is cheaper than 85.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACIW is valued cheaper than 83.45% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	15.77
EV/EBITDA	11.58

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.
ACIW's earnings are expected to grow with 14.85% in the coming years. This may justify a more expensive valuation.