ACI WORLDWIDE INC (ACIW) Fundamental Analysis & Valuation
NASDAQ:ACIW • US0044981019
42.86 USD
+0.42 (+0.99%)
At close: Mar 5, 2026
42.86 USD
0 (0%)
After Hours: 3/5/2026, 8:00:01 PM
This ACIW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall ACIW gets a fundamental rating of 6 out of 10. We evaluated ACIW against 276 industry peers in the Software industry. ACIW has an excellent profitability rating, but 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 could make ACIW a good candidate for value investing.
1. ACIW Profitability Analysis
1.1 Basic Checks
- ACIW had positive earnings in the past year.
- In the past year ACIW had a positive cash flow from operations.
- ACIW had positive earnings in each of the past 5 years.
- ACIW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.30%, ACIW is in the better half of the industry, outperforming 78.99% of the companies in the same industry.
- ACIW's Return On Equity of 14.92% is amongst the best of the industry. ACIW outperforms 80.80% of its industry peers.
- With an excellent Return On Invested Capital value of 11.03%, ACIW belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
- ACIW had an Average Return On Invested Capital over the past 3 years of 9.42%. This is in line with the industry average of 10.79%.
- The 3 year average ROIC (9.42%) for ACIW is below the current ROIC(11.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 14.92% | ||
| ROIC | 11.03% |
ROA(3y)5.85%
ROA(5y)5.2%
ROE(3y)12.79%
ROE(5y)12.11%
ROIC(3y)9.42%
ROIC(5y)8.46%
1.3 Margins
- The Profit Margin of ACIW (12.88%) is better than 75.72% of its industry peers.
- ACIW's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 19.40%, ACIW belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
- In the last couple of years the Operating Margin of ACIW has grown nicely.
- ACIW has a Gross Margin of 48.99%. This is in the lower half of the industry: ACIW underperforms 71.01% 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 | 19.4% | ||
| PM (TTM) | 12.88% | ||
| GM | 48.99% |
OM growth 3Y9.8%
OM growth 5Y5.65%
PM growth 3Y8.8%
PM growth 5Y18.05%
GM growth 3Y-1.36%
GM growth 5Y-1.28%
2. ACIW Health Analysis
2.1 Basic Checks
- ACIW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ACIW has less shares outstanding
- Compared to 5 years ago, ACIW has less shares outstanding
- ACIW has a better debt/assets ratio than last year.
2.2 Solvency
- ACIW has an Altman-Z score of 3.53. This indicates that ACIW is financially healthy and has little risk of bankruptcy at the moment.
- ACIW has a better Altman-Z score (3.53) than 67.75% of its industry peers.
- The Debt to FCF ratio of ACIW is 2.82, which is a good value as it means it would take ACIW, 2.82 years of fcf income to pay off all of its debts.
- ACIW has a Debt to FCF ratio of 2.82. This is in the better half of the industry: ACIW outperforms 63.04% of its industry peers.
- A Debt/Equity ratio of 0.51 indicates that ACIW is somewhat dependend on debt financing.
- ACIW has a worse Debt to Equity ratio (0.51) than 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 3.53 |
ROIC/WACC1
WACC11.06%
2.3 Liquidity
- A Current Ratio of 1.54 indicates that ACIW should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.54, ACIW is in line with its industry, outperforming 45.65% of the companies in the same industry.
- ACIW has a Quick Ratio of 1.54. 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 (1.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. ACIW Growth Analysis
3.1 Past
- ACIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.02%, 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 29.32% on average per year.
- Looking at the last year, ACIW shows a quite strong growth in Revenue. The Revenue has grown by 10.38% in the last year.
- The Revenue has been growing slightly by 6.34% on average over the past years.
EPS 1Y (TTM)13.02%
EPS 3Y22.86%
EPS 5Y29.32%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y7.37%
Revenue growth 5Y6.34%
Sales Q2Q%6.3%
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 19.47% yearly.
- ACIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y26.29%
EPS Next 2Y19.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.1%
Revenue Next 2Y7.87%
Revenue Next 3YN/A
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.
- 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. ACIW Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 19.75 indicates a rather expensive valuation of ACIW.
- 73.55% 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 26.74, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 15.64, which indicates a correct valuation of ACIW.
- 74.64% of the companies in the same industry are more expensive than ACIW, based on the Price/Forward Earnings ratio.
- ACIW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
- ACIW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACIW is cheaper than 86.23% of the companies in the same industry.
- ACIW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ACIW is cheaper than 81.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.06 | ||
| EV/EBITDA | 11.26 |
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.
- A more expensive valuation may be justified as ACIW's earnings are expected to grow with 19.47% in the coming years.
PEG (NY)0.75
PEG (5Y)0.67
EPS Next 2Y19.47%
EPS Next 3YN/A
5. ACIW Dividend Analysis
5.1 Amount
- ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ACIW Fundamentals: All Metrics, Ratios and Statistics
42.86
+0.42 (+0.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners101.2%
Inst Owner Change-3.73%
Ins Owners0.64%
Ins Owner Change2.63%
Market Cap4.36B
Revenue(TTM)1.76B
Net Income(TTM)226.66M
Analysts84.62
Price Target63.21 (47.48%)
Short Float %3.54%
Short Ratio4.29
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)1
Avg EPS beat(2)-8.2%
Min EPS beat(2)-24.02%
Max EPS beat(2)7.62%
EPS beat(4)3
Avg EPS beat(4)53.01%
Min EPS beat(4)-24.02%
Max EPS beat(4)202.37%
EPS beat(8)7
Avg EPS beat(8)91.61%
EPS beat(12)10
Avg EPS beat(12)78.16%
EPS beat(16)10
Avg EPS beat(16)54.39%
Revenue beat(2)2
Avg Revenue beat(2)1.62%
Min Revenue beat(2)1.61%
Max Revenue beat(2)1.63%
Revenue beat(4)4
Avg Revenue beat(4)3.21%
Min Revenue beat(4)1.61%
Max Revenue beat(4)6.21%
Revenue beat(8)7
Avg Revenue beat(8)3.36%
Revenue beat(12)9
Avg Revenue beat(12)2.7%
Revenue beat(16)12
Avg Revenue beat(16)2.09%
PT rev (1m)-5.56%
PT rev (3m)-0.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.44%
EPS NY rev (1m)0%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 15.64 | ||
| P/S | 2.48 | ||
| P/FCF | 15.06 | ||
| P/OCF | 13.5 | ||
| P/B | 2.87 | ||
| P/tB | 68.8 | ||
| EV/EBITDA | 11.26 |
EPS(TTM)2.17
EY5.06%
EPS(NY)2.74
Fwd EY6.39%
FCF(TTM)2.85
FCFY6.64%
OCF(TTM)3.17
OCFY7.4%
SpS17.3
BVpS14.93
TBVpS0.62
PEG (NY)0.75
PEG (5Y)0.67
Graham Number27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 14.92% | ||
| ROCE | 14.23% | ||
| ROIC | 11.03% | ||
| ROICexc | 12.01% | ||
| ROICexgc | 35.42% | ||
| OM | 19.4% | ||
| PM (TTM) | 12.88% | ||
| GM | 48.99% | ||
| FCFM | 16.45% |
ROA(3y)5.85%
ROA(5y)5.2%
ROE(3y)12.79%
ROE(5y)12.11%
ROIC(3y)9.42%
ROIC(5y)8.46%
ROICexc(3y)10.25%
ROICexc(5y)9.11%
ROICexgc(3y)31.13%
ROICexgc(5y)29.84%
ROCE(3y)12.15%
ROCE(5y)10.91%
ROICexgc growth 3Y12.1%
ROICexgc growth 5Y4.38%
ROICexc growth 3Y18.3%
ROICexc growth 5Y13.48%
OM growth 3Y9.8%
OM growth 5Y5.65%
PM growth 3Y8.8%
PM growth 5Y18.05%
GM growth 3Y-1.36%
GM growth 5Y-1.28%
F-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.82 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 34.4% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 5.33 | ||
| Cash Conversion | 73.64% | ||
| Profit Quality | 127.72% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 3.53 |
F-Score7
WACC11.06%
ROIC/WACC1
Cap/Depr(3y)35.29%
Cap/Depr(5y)34.25%
Cap/Sales(3y)2.44%
Cap/Sales(5y)2.69%
Profit Quality(3y)129.92%
Profit Quality(5y)119.91%
High Growth Momentum
Growth
EPS 1Y (TTM)13.02%
EPS 3Y22.86%
EPS 5Y29.32%
EPS Q2Q%-33.33%
EPS Next Y26.29%
EPS Next 2Y19.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.38%
Revenue growth 3Y7.37%
Revenue growth 5Y6.34%
Sales Q2Q%6.3%
Revenue Next Year8.1%
Revenue Next 2Y7.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.79%
EBIT growth 3Y17.89%
EBIT growth 5Y12.35%
EBIT Next Year56.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.72%
FCF growth 3Y40.89%
FCF growth 5Y1.53%
OCF growth 1Y-10.01%
OCF growth 3Y31.06%
OCF growth 5Y0.5%
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 19.75 and the Price/Book (PB) ratio is 2.87.