ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
NASDAQ:ACIW - Nasdaq - US0044981019 - Common Stock - Currency: USD
Overall ACIW gets a fundamental rating of 6 out of 10. We evaluated ACIW against 285 industry peers in the Software industry. ACIW scores excellent on profitability, 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
ACIW had positive earnings in the past year.
In the past year ACIW had a positive cash flow from operations.
Each year in the past 5 years ACIW has been profitable.
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 6.71%, ACIW belongs to the top of the industry, outperforming 80.35% of the companies in the same industry.
ACIW has a better Return On Equity (14.26%) than 81.40% of its industry peers.
With an excellent Return On Invested Capital value of 10.68%, ACIW belongs to the best of the industry, outperforming 87.72% 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 11.46%.
The last Return On Invested Capital (10.68%) for ACIW is above the 3 year average (8.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 14.26% | ||
| ROIC | 10.68% |
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
The Profit Margin of ACIW (12.74%) is better than 77.19% of its industry peers.
In the last couple of years the Profit Margin of ACIW has grown nicely.
ACIW's Operating Margin of 19.87% is amongst the best of the industry. ACIW outperforms 86.67% of its industry peers.
In the last couple of years the Operating Margin of ACIW has grown nicely.
ACIW's Gross Margin of 50.34% is on the low side compared to the rest of the industry. ACIW is outperformed by 67.02% 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 | 19.87% | ||
| PM (TTM) | 12.74% | ||
| GM | 50.34% |
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 below the Cost of Capital (WACC), so ACIW is destroying value.
ACIW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ACIW has been reduced compared to 5 years ago.
The debt/assets ratio for ACIW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.78 indicates that ACIW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.78, ACIW is in the better half of the industry, outperforming 66.32% of the companies in the same industry.
ACIW has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as ACIW would need 2.95 years to pay back of all of its debts.
ACIW has a Debt to FCF ratio of 2.95. This is in the better half of the industry: ACIW outperforms 63.51% of its industry peers.
ACIW has a Debt/Equity ratio of 0.62. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.62, ACIW is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 3.78 |
ROIC/WACC0.97
WACC11.03%
2.3 Liquidity
ACIW has a Current Ratio of 1.64. 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 (1.64) which is comparable to the rest of the industry.
ACIW has a Quick Ratio of 1.64. This is a normal value and indicates that ACIW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ACIW (1.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 72.97% over the past year.
ACIW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.49% yearly.
Looking at the last year, ACIW shows a quite strong growth in Revenue. The Revenue has grown by 9.76% in the last 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)72.97%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%-16.96%
Revenue 1Y (TTM)9.76%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%-4.94%
3.2 Future
The Earnings Per Share is expected to grow by 16.05% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.84% on average over the next years.
EPS Next Y17.14%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.52%
Revenue Next 2Y6.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 25.66 indicates a quite expensive valuation of ACIW.
Based on the Price/Earnings ratio, ACIW is valued a bit cheaper than the industry average as 68.07% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ACIW is valued at the same level.
ACIW is valuated rather expensively with a Price/Forward Earnings ratio of 21.90.
72.63% 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 (21.32), we can say ACIW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.66 | ||
| Fwd PE | 21.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaper than 85.61% 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 83.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.54 | ||
| EV/EBITDA | 13.89 |
4.3 Compensation for Growth
ACIW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.05% in the coming years.
PEG (NY)1.5
PEG (5Y)0.93
EPS Next 2Y16.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ACIW (4/21/2025, 2:27:41 PM)
49.26
-1.68 (-3.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.84%
Inst Owner Change0.08%
Ins Owners0.83%
Ins Owner Change1.97%
Market Cap5.19B
Analysts78.33
Price Target66.3 (34.59%)
Short Float %2.36%
Short Ratio3.69
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)67.31%
Min EPS beat(2)56.3%
Max EPS beat(2)78.32%
EPS beat(4)4
Avg EPS beat(4)130.21%
Min EPS beat(4)56.3%
Max EPS beat(4)323.46%
EPS beat(8)7
Avg EPS beat(8)90.73%
EPS beat(12)7
Avg EPS beat(12)54.85%
EPS beat(16)8
Avg EPS beat(16)42.13%
Revenue beat(2)1
Avg Revenue beat(2)4.08%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)9.83%
Revenue beat(4)3
Avg Revenue beat(4)3.51%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)9.83%
Revenue beat(8)5
Avg Revenue beat(8)2.45%
Revenue beat(12)8
Avg Revenue beat(12)1.72%
Revenue beat(16)10
Avg Revenue beat(16)1.23%
PT rev (1m)0%
PT rev (3m)1.25%
EPS NQ rev (1m)-10.87%
EPS NQ rev (3m)10150%
EPS NY rev (1m)17.29%
EPS NY rev (3m)17.29%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)8.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.66 | ||
| Fwd PE | 21.9 | ||
| P/S | 3.25 | ||
| P/FCF | 16.54 | ||
| P/OCF | 14.46 | ||
| P/B | 3.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.89 |
EPS(TTM)1.92
EY3.9%
EPS(NY)2.25
Fwd EY4.57%
FCF(TTM)2.98
FCFY6.05%
OCF(TTM)3.41
OCFY6.91%
SpS15.13
BVpS13.52
TBVpS-0.57
PEG (NY)1.5
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 14.26% | ||
| ROCE | 13.07% | ||
| ROIC | 10.68% | ||
| ROICexc | 11.73% | ||
| ROICexgc | 35.85% | ||
| OM | 19.87% | ||
| PM (TTM) | 12.74% | ||
| GM | 50.34% | ||
| FCFM | 19.68% |
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-Score7
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 37.33% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 4.51 | ||
| Cash Conversion | 82.02% | ||
| Profit Quality | 154.44% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 3.78 |
F-Score7
WACC11.03%
ROIC/WACC0.97
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)72.97%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%-16.96%
EPS Next Y17.14%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.76%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%-4.94%
Revenue Next Year6.52%
Revenue Next 2Y6.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y42.15%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year71.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y139.94%
FCF growth 3Y21.45%
FCF growth 5Y29.97%
OCF growth 1Y112.89%
OCF growth 3Y17.61%
OCF growth 5Y22.03%