ACI WORLDWIDE INC (ACIW)
US0044981019 - Common Stock
We assign a fundamental rating of 6 out of 10 to ACIW. ACIW was compared to 279 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. ACIW is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make ACIW suitable for growth 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.
In the past 5 years ACIW has always been profitable.
In the past 5 years ACIW always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.34%, ACIW belongs to the best of the industry, outperforming 81.36% of the companies in the same industry.
ACIW has a better Return On Equity (17.09%) than 85.30% of its industry peers.
With an excellent Return On Invested Capital value of 11.33%, ACIW belongs to the best of the industry, outperforming 87.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACIW is significantly below the industry average of 12.23%.
The last Return On Invested Capital (11.33%) for ACIW is above the 3 year average (6.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 17.09% | ||
| ROIC | 11.33% |
ROA(3y)4%
ROA(5y)3.24%
ROE(3y)10.45%
ROE(5y)8.66%
ROIC(3y)6.89%
ROIC(5y)6.12%
1.3 Margins
ACIW has a better Profit Margin (14.04%) than 82.08% of its industry peers.
In the last couple of years the Profit Margin of ACIW has grown nicely.
ACIW has a Operating Margin of 22.20%. This is amongst the best in the industry. ACIW outperforms 89.96% of its industry peers.
In the last couple of years the Operating Margin of ACIW has grown nicely.
The Gross Margin of ACIW (52.20%) is worse than 68.46% of its industry peers.
ACIW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.2% | ||
| PM (TTM) | 14.04% | ||
| GM | 52.2% |
OM growth 3Y1.63%
OM growth 5Y3.86%
PM growth 3Y14.2%
PM growth 5Y4.16%
GM growth 3Y-1.13%
GM growth 5Y-2.53%
2. Health
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.
ACIW has about the same amout of 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.63 indicates that ACIW is not in any danger for bankruptcy at the moment.
ACIW has a Altman-Z score (3.63) which is comparable to the rest of the industry.
The Debt to FCF ratio of ACIW is 3.56, which is a good value as it means it would take ACIW, 3.56 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.56, ACIW is in the better half of the industry, outperforming 61.65% of the companies in the same industry.
ACIW has a Debt/Equity ratio of 0.72. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
ACIW's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. ACIW is outperformed by 72.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.98
WACC11.6%
2.3 Liquidity
A Current Ratio of 1.56 indicates that ACIW should not have too much problems paying its short term obligations.
ACIW has a Current ratio of 1.56. This is comparable to the rest of the industry: ACIW outperforms 45.88% of its industry peers.
A Quick Ratio of 1.56 indicates that ACIW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.56, ACIW is in line with its industry, outperforming 46.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 163.75% over the past year.
The Earnings Per Share has been growing by 8.45% on average over the past years. This is quite good.
Looking at the last year, ACIW shows a quite strong growth in Revenue. The Revenue has grown by 13.31% in the last year.
The Revenue has been growing slightly by 7.54% on average over the past years.
EPS 1Y (TTM)163.75%
EPS 3Y22.76%
EPS 5Y8.45%
EPS Q2Q%120%
Revenue 1Y (TTM)13.31%
Revenue growth 3Y3.92%
Revenue growth 5Y7.54%
Sales Q2Q%24.44%
3.2 Future
ACIW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.63% yearly.
ACIW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.02% yearly.
EPS Next Y43.96%
EPS Next 2Y31.44%
EPS Next 3Y24.63%
EPS Next 5YN/A
Revenue Next Year9.58%
Revenue Next 2Y8.26%
Revenue Next 3Y8.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.14, which means the current valuation is very expensive for ACIW.
Compared to the rest of the industry, the Price/Earnings ratio of ACIW indicates a somewhat cheap valuation: ACIW is cheaper than 77.78% of the companies listed in the same industry.
ACIW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.66, the valuation of ACIW can be described as expensive.
Based on the Price/Forward Earnings ratio, ACIW is valued a bit cheaper than the industry average as 71.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ACIW to the average of the S&P500 Index (22.83), we can say ACIW is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 27.66 |
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 89.25% of the companies listed in the same industry.
ACIW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ACIW is cheaper than 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.94 | ||
| EV/EBITDA | 13.44 |
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.
ACIW's earnings are expected to grow with 24.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)2.98
EPS Next 2Y31.44%
EPS Next 3Y24.63%
5. Dividend
5.1 Amount
ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ACI WORLDWIDE INC
NASDAQ:ACIW (12/20/2024, 8:00:00 PM)
After market: 53.04 0 (0%)53.04
+0.61 (+1.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.08%
Inst Owner Change-1.07%
Ins Owners0.82%
Ins Owner Change0.18%
Market Cap5.56B
Analysts78.33
Price Target65.48 (23.45%)
Short Float %2.3%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)200.89%
Min EPS beat(2)78.32%
Max EPS beat(2)323.46%
EPS beat(4)4
Avg EPS beat(4)119.34%
Min EPS beat(4)12.81%
Max EPS beat(4)323.46%
EPS beat(8)6
Avg EPS beat(8)82.15%
EPS beat(12)6
Avg EPS beat(12)49.68%
EPS beat(16)8
Avg EPS beat(16)38.73%
Revenue beat(2)2
Avg Revenue beat(2)7.28%
Min Revenue beat(2)4.72%
Max Revenue beat(2)9.83%
Revenue beat(4)3
Avg Revenue beat(4)3.39%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)9.83%
Revenue beat(8)6
Avg Revenue beat(8)3.13%
Revenue beat(12)9
Avg Revenue beat(12)1.93%
Revenue beat(16)11
Avg Revenue beat(16)1.39%
PT rev (1m)13.43%
PT rev (3m)13.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.43%
EPS NY rev (1m)0.64%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.55%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 27.66 | ||
| P/S | 3.44 | ||
| P/FCF | 19.94 | ||
| P/OCF | 17.5 | ||
| P/B | 4.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.44 |
EPS(TTM)2.11
EY3.98%
EPS(NY)1.92
Fwd EY3.62%
FCF(TTM)2.66
FCFY5.02%
OCF(TTM)3.03
OCFY5.72%
SpS15.42
BVpS12.68
TBVpS-1.52
PEG (NY)0.57
PEG (5Y)2.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 17.09% | ||
| ROCE | 14.99% | ||
| ROIC | 11.33% | ||
| ROICexc | 12.23% | ||
| ROICexgc | 37.21% | ||
| OM | 22.2% | ||
| PM (TTM) | 14.04% | ||
| GM | 52.2% | ||
| FCFM | 17.25% |
ROA(3y)4%
ROA(5y)3.24%
ROE(3y)10.45%
ROE(5y)8.66%
ROIC(3y)6.89%
ROIC(5y)6.12%
ROICexc(3y)7.31%
ROICexc(5y)6.49%
ROICexgc(3y)26%
ROICexgc(5y)24.51%
ROCE(3y)9.12%
ROCE(5y)8.1%
ROICexcg growth 3Y-5.11%
ROICexcg growth 5Y2.42%
ROICexc growth 3Y6.74%
ROICexc growth 5Y5.38%
OM growth 3Y1.63%
OM growth 5Y3.86%
PM growth 3Y14.2%
PM growth 5Y4.16%
GM growth 3Y-1.13%
GM growth 5Y-2.53%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.56 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 33.64% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 4.93 | ||
| Cash Conversion | 66.97% | ||
| Profit Quality | 122.84% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 3.63 |
F-Score8
WACC11.6%
ROIC/WACC0.98
Cap/Depr(3y)32.08%
Cap/Depr(5y)33.72%
Cap/Sales(3y)2.91%
Cap/Sales(5y)3.23%
Profit Quality(3y)105.8%
Profit Quality(5y)162.51%
High Growth Momentum
Growth
EPS 1Y (TTM)163.75%
EPS 3Y22.76%
EPS 5Y8.45%
EPS Q2Q%120%
EPS Next Y43.96%
EPS Next 2Y31.44%
EPS Next 3Y24.63%
EPS Next 5YN/A
Revenue 1Y (TTM)13.31%
Revenue growth 3Y3.92%
Revenue growth 5Y7.54%
Sales Q2Q%24.44%
Revenue Next Year9.58%
Revenue Next 2Y8.26%
Revenue Next 3Y8.02%
Revenue Next 5YN/A
EBIT growth 1Y80.39%
EBIT growth 3Y5.61%
EBIT growth 5Y11.69%
EBIT Next Year105.61%
EBIT Next 3Y34.67%
EBIT Next 5YN/A
FCF growth 1Y100.62%
FCF growth 3Y-21.31%
FCF growth 5Y-1.36%
OCF growth 1Y78.64%
OCF growth 3Y-18.81%
OCF growth 5Y-1.73%