44.59 USD
-0.22 (-0.49%)
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 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. This makes ACIW very considerable 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.
- 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
- With an excellent Return On Assets value of 8.25%, ACIW belongs to the best 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.
- ACIW has a Return On Invested Capital of 12.16%. This is amongst the best in the industry. ACIW outperforms 88.13% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ACIW is below the industry average of 10.76%.
- 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
- ACIW has a better Profit Margin (15.07%) than 77.70% of its industry peers.
- In the last couple of years the Profit Margin of ACIW has grown nicely.
- Looking at the Operating Margin, with a value of 20.83%, ACIW belongs to the top of the industry, outperforming 87.05% of the companies in the same industry.
- In the last couple of years the Operating Margin of ACIW has grown nicely.
- ACIW has a worse Gross Margin (49.67%) 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%
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.
- ACIW has less shares outstanding than it did 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
- An Altman-Z score of 3.51 indicates that ACIW is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ACIW (3.51) is better than 66.19% 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.
- ACIW has a Debt to FCF ratio of 3.02. This is in the better half of the industry: ACIW outperforms 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 | 3.51 |
ROIC/WACC1.09
WACC11.16%
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 47.84% 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.
- Looking at the Quick ratio, with a value of 1.58, ACIW is in line with its industry, outperforming 48.56% of the companies in the same 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
- ACIW shows a small growth in Revenue. In the last year, the Revenue has grown by 7.01%.
- Measured over the past years, ACIW shows a small growth in Revenue. The Revenue has been growing by 4.85% on average per year.
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.
- Based on estimates for the next years, ACIW will show a small growth in Revenue. The Revenue will grow by 7.95% on average per year.
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.
- 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. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.98, which indicates a rather expensive current valuation of ACIW.
- 76.98% of the companies in the same industry are more expensive than ACIW, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.25. ACIW is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 17.14, the valuation of ACIW can be described as rather expensive.
- 78.06% of the companies in the same industry are more expensive than ACIW, based on the Price/Forward Earnings ratio.
- 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 | 17.98 | ||
| Fwd PE | 17.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaply inside the industry as 85.25% of the companies are valued more expensively.
- 83.45% of the companies in the same industry are more expensive than ACIW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.97 | ||
| EV/EBITDA | 11.76 |
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.
- A more expensive valuation may be justified as ACIW's earnings are expected to grow with 14.85% in the coming years.
PEG (NY)0.73
PEG (5Y)0.65
EPS Next 2Y16.39%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
- No dividends for ACIW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 17.98 and the Price/Book (PB) ratio is 3.11.