ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
USA - NASDAQ:ACIW - US0044981019 - Common Stock
49.93 USD
-0.22 (-0.44%)
ACIW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 280 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make ACIW a good candidate 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.
Each year in the past 5 years ACIW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.00%, ACIW belongs to the top of the industry, outperforming 81.79% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.02%, ACIW belongs to the top of the industry, outperforming 85.36% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.26%, ACIW belongs to the best of the industry, outperforming 89.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACIW is below the industry average of 11.85%.
The last Return On Invested Capital (12.26%) for ACIW is above the 3 year average (8.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 18.02% | ||
| ROIC | 12.26% |
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's Profit Margin of 14.76% is fine compared to the rest of the industry. ACIW outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of ACIW has grown nicely.
ACIW's Operating Margin of 20.85% is amongst the best of the industry. ACIW outperforms 86.79% of its industry peers.
In the last couple of years the Operating Margin of ACIW has grown nicely.
With a Gross Margin value of 50.28%, ACIW is not doing good in the industry: 69.29% of the companies in the same industry are doing better.
ACIW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.85% | ||
| PM (TTM) | 14.76% | ||
| GM | 50.28% |
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.
Compared to 1 year ago, ACIW has less shares outstanding
ACIW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACIW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.58 indicates that ACIW is not in any danger for bankruptcy at the moment.
ACIW has a Altman-Z score of 3.58. This is in the better half of the industry: ACIW outperforms 61.07% of its industry peers.
ACIW has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as ACIW would need 3.31 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.31, ACIW is doing good in the industry, outperforming 62.50% of the companies in the same industry.
ACIW has a Debt/Equity ratio of 0.62. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
ACIW has a Debt to Equity ratio of 0.62. This is in the lower half of the industry: ACIW underperforms 68.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.11
WACC11.08%
2.3 Liquidity
ACIW has a Current Ratio of 1.48. 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 (1.48) which is comparable to the rest of the industry.
ACIW has a Quick Ratio of 1.48. 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 of 1.48. This is comparable to the rest of the industry: ACIW outperforms 49.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
ACIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.24%, which is quite impressive.
ACIW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.49% yearly.
The Revenue has grown by 11.22% in the past year. This is quite good.
The Revenue has been growing slightly by 4.85% on average over the past years.
EPS 1Y (TTM)40.24%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%-58.62%
Revenue 1Y (TTM)11.22%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%7.44%
3.2 Future
The Earnings Per Share is expected to grow by 22.02% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.17% on average over the next years.
EPS Next Y23.57%
EPS Next 2Y22.11%
EPS Next 3Y22.02%
EPS Next 5YN/A
Revenue Next Year8.49%
Revenue Next 2Y7.73%
Revenue Next 3Y6.17%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 21.07 indicates a rather expensive valuation of ACIW.
74.64% 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 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.44 indicates a rather expensive valuation of ACIW.
81.07% 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 (22.73), we can say ACIW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 17.44 |
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 88.21% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACIW indicates a rather cheap valuation: ACIW is cheaper than 82.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.01 | ||
| EV/EBITDA | 12.57 |
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 22.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)0.77
EPS Next 2Y22.11%
EPS Next 3Y22.02%
5. Dividend
5.1 Amount
No dividends for ACIW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ACIW (9/15/2025, 11:55:08 AM)
49.93
-0.22 (-0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.45%
Inst Owner Change-2.7%
Ins Owners0.49%
Ins Owner Change0.91%
Market Cap5.15B
Analysts81.54
Price Target63.19 (26.56%)
Short Float %2.88%
Short Ratio3.61
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)114.21%
Min EPS beat(2)26.05%
Max EPS beat(2)202.37%
EPS beat(4)4
Avg EPS beat(4)90.76%
Min EPS beat(4)26.05%
Max EPS beat(4)202.37%
EPS beat(8)8
Avg EPS beat(8)117.92%
EPS beat(12)9
Avg EPS beat(12)74.79%
EPS beat(16)9
Avg EPS beat(16)54.06%
Revenue beat(2)2
Avg Revenue beat(2)4.8%
Min Revenue beat(2)3.39%
Max Revenue beat(2)6.21%
Revenue beat(4)3
Avg Revenue beat(4)4.44%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)9.83%
Revenue beat(8)6
Avg Revenue beat(8)3.31%
Revenue beat(12)8
Avg Revenue beat(12)2.37%
Revenue beat(16)11
Avg Revenue beat(16)1.86%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)3.82%
EPS NQ rev (3m)23.71%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)9.72%
Revenue NQ rev (1m)1.93%
Revenue NQ rev (3m)4.87%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 17.44 | ||
| P/S | 3.03 | ||
| P/FCF | 19.01 | ||
| P/OCF | 16.7 | ||
| P/B | 3.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.57 |
EPS(TTM)2.37
EY4.75%
EPS(NY)2.86
Fwd EY5.73%
FCF(TTM)2.63
FCFY5.26%
OCF(TTM)2.99
OCFY5.99%
SpS16.48
BVpS13.5
TBVpS-0.75
PEG (NY)0.89
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 18.02% | ||
| ROCE | 15% | ||
| ROIC | 12.26% | ||
| ROICexc | 13.33% | ||
| ROICexgc | 41.22% | ||
| OM | 20.85% | ||
| PM (TTM) | 14.76% | ||
| GM | 50.28% | ||
| FCFM | 15.93% |
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%
ROICexcg growth 3Y3.32%
ROICexcg 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 33.1% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 5.08 | ||
| Cash Conversion | 65.93% | ||
| Profit Quality | 107.93% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.58 |
F-Score8
WACC11.08%
ROIC/WACC1.11
Cap/Depr(3y)32.29%
Cap/Depr(5y)32.82%
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)40.24%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%-58.62%
EPS Next Y23.57%
EPS Next 2Y22.11%
EPS Next 3Y22.02%
EPS Next 5YN/A
Revenue 1Y (TTM)11.22%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%7.44%
Revenue Next Year8.49%
Revenue Next 2Y7.73%
Revenue Next 3Y6.17%
Revenue Next 5YN/A
EBIT growth 1Y18.91%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year71.05%
EBIT Next 3Y24.59%
EBIT Next 5YN/A
FCF growth 1Y207.92%
FCF growth 3Y21.45%
FCF growth 5Y29.97%
OCF growth 1Y131.79%
OCF growth 3Y17.61%
OCF growth 5Y22.03%