Taking everything into account, ACIW scores 6 out of 10 in our fundamental rating. ACIW was compared to 278 industry peers in the Software industry. While ACIW has a great profitability rating, 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

In the past year ACIW was profitable.
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 80.94% of its industry peers.
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.
The Return On Invested Capital of ACIW (12.16%) is better than 88.13% of its industry peers.
ACIW had an Average Return On Invested Capital over the past 3 years of 8.48%. This is below the industry average of 10.73%.
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

Looking at the Profit Margin, with a value of 15.07%, ACIW is in the better half of 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.
The Operating Margin of ACIW (20.83%) is better than 87.05% of its industry peers.
In the last couple of years the Operating Margin of ACIW has grown nicely.
ACIW has a Gross Margin of 49.67%. This is in the lower half of the industry: ACIW underperforms 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, ACIW has less shares outstanding
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 has a better Altman-Z score (3.45) than 66.19% 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.
With a decent Debt to FCF ratio value of 3.02, ACIW is doing good in the industry, outperforming 64.39% of the companies in the same industry.
ACIW has a Debt/Equity ratio of 0.56. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, ACIW is doing worse than 67.27% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.56
Debt/FCF	3.02
Altman-Z	3.45

ROIC/WACC1.09

WACC11.14%

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's Current ratio of 1.58 is in line compared to the rest of the industry. ACIW outperforms 47.84% of 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 in line with its industry peers.

		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.
Measured over the past years, ACIW shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.49% on average per year.
ACIW shows a small growth in Revenue. In the last year, the Revenue has grown by 7.01%.
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 14.85% on average per year.
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

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 accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.48, ACIW is valued on the expensive side.
76.62% of the companies in the same industry are more expensive than ACIW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ACIW to the average of the S&P500 Index (28.30), we can say ACIW is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.67, which indicates a correct valuation of ACIW.
Based on the Price/Forward Earnings ratio, ACIW is valued a bit cheaper than 76.98% of the companies in the same industry.
ACIW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	17.48
Fwd PE	16.67

4.2 Price Multiples

84.89% 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 83.09% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	15.53
EV/EBITDA	11.39

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.
A more expensive valuation may be justified as ACIW's earnings are expected to grow with 14.85% in the coming years.