We assign a fundamental rating of 6 out of 10 to ACIW. ACIW was compared to 277 industry peers in the Software industry. While ACIW has a great profitability rating, there are some minor concerns on its financial health. ACIW is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make ACIW suitable for value investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years ACIW always reported a positive cash flow from operatings.

1.2 Ratios

ACIW's Return On Assets of 8.25% is amongst the best of the industry. ACIW outperforms 80.87% of its industry peers.
The Return On Equity of ACIW (17.64%) is better than 85.56% of its industry peers.
ACIW's Return On Invested Capital of 12.16% is amongst the best of the industry. ACIW outperforms 88.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACIW is below the industry average of 10.78%.
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

ACIW's Profit Margin of 15.07% is fine compared to the rest of the industry. ACIW outperforms 77.62% of its industry peers.
In the last couple of years the Profit Margin of ACIW has grown nicely.
The Operating Margin of ACIW (20.83%) is better than 87.00% of its industry peers.
ACIW's Operating Margin has improved in the last couple of years.
ACIW has a Gross Margin of 49.67%. This is in the lower half of the industry: ACIW underperforms 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ACIW is still creating some value.
Compared to 1 year ago, ACIW has less shares outstanding
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 3.47. This indicates that ACIW is financially healthy and has little risk of bankruptcy at the moment.
ACIW has a Altman-Z score of 3.47. This is in the better half of the industry: ACIW outperforms 64.98% of its industry peers.
ACIW has a debt to FCF ratio of 3.02. This is a good value and a sign of high solvency as ACIW would need 3.02 years to pay back of 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	3.47

ROIC/WACC1.09

WACC11.17%

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 (1.58) which is in line with its industry peers.
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.
ACIW has a Quick ratio (1.58) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.58
Quick Ratio	1.58

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

ACIW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.12% yearly.
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

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 stable.

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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 76.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. ACIW is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.85, ACIW is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACIW indicates a somewhat cheap valuation: ACIW is cheaper than 79.06% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.32. ACIW is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	17.75
Fwd PE	16.85

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 85.56% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACIW indicates a rather cheap valuation: ACIW is cheaper than 83.75% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	15.77
EV/EBITDA	11.51

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.
The excellent profitability rating of ACIW 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.