ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
USA - NASDAQ:ACIW - US0044981019 - Common Stock
48 USD
+0.52 (+1.1%)
48 USD
0 (0%)
ACIW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. ACIW has an excellent profitability rating, but there are some minor concerns on its financial health. ACIW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACIW was profitable.
ACIW had a positive operating cash flow in the past year.
In the past 5 years ACIW has always been profitable.
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 8.25%, ACIW belongs to the top of the industry, outperforming 82.56% of the companies in the same industry.
ACIW has a better Return On Equity (17.64%) than 85.41% of its industry peers.
The Return On Invested Capital of ACIW (12.16%) is better than 89.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACIW is below the industry average of 11.95%.
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
Looking at the Profit Margin, with a value of 15.07%, ACIW is in the better half of the industry, outperforming 78.65% of the companies in the same industry.
ACIW's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.83%, ACIW belongs to the best of the industry, outperforming 86.48% of the companies in the same industry.
ACIW's Operating Margin has improved in the last couple of years.
ACIW has a worse Gross Margin (49.67%) than 68.33% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACIW 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
ACIW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.61 indicates that ACIW is not in any danger for bankruptcy at the moment.
ACIW's Altman-Z score of 3.61 is fine compared to the rest of the industry. ACIW outperforms 62.99% 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.
Looking at the Debt to FCF ratio, with a value of 3.02, ACIW is in the better half of the industry, outperforming 64.41% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that ACIW is somewhat dependend on debt financing.
ACIW has a Debt to Equity ratio of 0.56. This is in the lower half of the industry: ACIW underperforms 65.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.1
WACC11.02%
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 49.11% 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 |
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
The Revenue has been growing slightly by 7.01% in the past year.
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 12.22% yearly.
Based on estimates for the next years, ACIW will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y22.45%
EPS Next 2Y16.39%
EPS Next 3Y12.22%
EPS Next 5YN/A
Revenue Next Year8.49%
Revenue Next 2Y7.67%
Revenue Next 3Y6.19%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.35 indicates a rather expensive valuation of ACIW.
Based on the Price/Earnings ratio, ACIW is valued a bit cheaper than 76.51% of the companies in the same industry.
ACIW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.45 indicates a rather expensive valuation of ACIW.
Based on the Price/Forward Earnings ratio, ACIW is valued a bit cheaper than 76.51% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, ACIW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 18.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaply inside the industry as 87.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ACIW is valued cheaply inside the industry as 81.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.21 | ||
| EV/EBITDA | 12.38 |
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 12.22% in the coming years.
PEG (NY)0.86
PEG (5Y)0.7
EPS Next 2Y16.39%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48
+0.52 (+1.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.55%
Inst Owner Change-0.29%
Ins Owners0.49%
Ins Owner Change3.18%
Market Cap4.95B
Revenue(TTM)1.73B
Net Income(TTM)260.88M
Analysts81.54
Price Target63.26 (31.79%)
Short Float %2.86%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)2
Avg EPS beat(2)16.84%
Min EPS beat(2)7.62%
Max EPS beat(2)26.05%
EPS beat(4)4
Avg EPS beat(4)73.09%
Min EPS beat(4)7.62%
Max EPS beat(4)202.37%
EPS beat(8)8
Avg EPS beat(8)96.21%
EPS beat(12)10
Avg EPS beat(12)79.13%
EPS beat(16)10
Avg EPS beat(16)55.53%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)1.63%
Max Revenue beat(2)3.39%
Revenue beat(4)3
Avg Revenue beat(4)2.39%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)6.21%
Revenue beat(8)6
Avg Revenue beat(8)2.89%
Revenue beat(12)9
Avg Revenue beat(12)2.88%
Revenue beat(16)12
Avg Revenue beat(16)2.05%
PT rev (1m)0.1%
PT rev (3m)0.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.6%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 18.45 | ||
| P/S | 2.86 | ||
| P/FCF | 17.21 | ||
| P/OCF | 15.12 | ||
| P/B | 3.35 | ||
| P/tB | 222.63 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)2.48
EY5.17%
EPS(NY)2.6
Fwd EY5.42%
FCF(TTM)2.79
FCFY5.81%
OCF(TTM)3.17
OCFY6.61%
SpS16.78
BVpS14.33
TBVpS0.22
PEG (NY)0.86
PEG (5Y)0.7
Graham Number28.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | 17.64% | ||
| ROCE | 14.88% | ||
| ROIC | 12.16% | ||
| ROICexc | 13.25% | ||
| ROICexgc | 38.39% | ||
| OM | 20.83% | ||
| PM (TTM) | 15.07% | ||
| GM | 49.67% | ||
| FCFM | 16.62% |
ROA(3y)4.89%
ROA(5y)4.17%
ROE(3y)11.78%
ROE(5y)10.33%
ROIC(3y)8.48%
ROIC(5y)7.85%
ROICexc(3y)9.15%
ROICexc(5y)8.42%
ROICexgc(3y)29.24%
ROICexgc(5y)30.02%
ROCE(3y)10.38%
ROCE(5y)9.61%
ROICexgc growth 3Y3.32%
ROICexgc growth 5Y14.4%
ROICexc growth 3Y13.64%
ROICexc growth 5Y19.94%
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%
F-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.02 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 44.63% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 5.92 | ||
| Cash Conversion | 72.82% | ||
| Profit Quality | 110.3% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 3.61 |
F-Score8
WACC11.02%
ROIC/WACC1.1
Cap/Depr(3y)34.27%
Cap/Depr(5y)34.01%
Cap/Sales(3y)2.74%
Cap/Sales(5y)3.03%
Profit Quality(3y)111.61%
Profit Quality(5y)168.18%
High Growth Momentum
Growth
EPS 1Y (TTM)17.54%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%14.29%
EPS Next Y22.45%
EPS Next 2Y16.39%
EPS Next 3Y12.22%
EPS Next 5YN/A
Revenue 1Y (TTM)7.01%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%6.78%
Revenue Next Year8.49%
Revenue Next 2Y7.67%
Revenue Next 3Y6.19%
Revenue Next 5YN/A
EBIT growth 1Y0.42%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year74.82%
EBIT Next 3Y24.59%
EBIT Next 5YN/A
FCF growth 1Y258.35%
FCF growth 3Y21.45%
FCF growth 5Y29.97%
OCF growth 1Y163.72%
OCF growth 3Y17.61%
OCF growth 5Y22.03%
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 of ACI WORLDWIDE INC (ACIW) stock?
ChartMill assigns a valuation rating of 6 / 10 to ACI WORLDWIDE INC (ACIW). This can be considered as Fairly Valued.
What is the profitability of ACIW stock?
ACI WORLDWIDE INC (ACIW) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ACIW stock?
The Price/Earnings (PE) ratio for ACI WORLDWIDE INC (ACIW) is 19.35 and the Price/Book (PB) ratio is 3.35.
What is the financial health of ACI WORLDWIDE INC (ACIW) stock?
The financial health rating of ACI WORLDWIDE INC (ACIW) is 5 / 10.