ACIW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 277 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ACIW suitable for value investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ACIW was profitable.
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 8.25%, ACIW belongs to the top of the industry, outperforming 80.87% of the companies in the same industry.
ACIW has a better Return On Equity (17.64%) than 85.56% of its industry peers.
ACIW has a Return On Invested Capital of 12.16%. This is amongst the best in the industry. ACIW outperforms 88.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACIW is below the industry average of 10.78%.
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

ACIW's Profit Margin of 15.07% is fine compared to the rest of the industry. ACIW outperforms 77.62% of its industry peers.
ACIW's Profit Margin has improved in the last couple of years.
The Operating Margin of ACIW (20.83%) is better than 87.00% of its industry peers.
ACIW's Operating Margin has improved in the last couple of years.
ACIW has a worse Gross Margin (49.67%) than 70.76% 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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
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

ACIW has an Altman-Z score of 3.49. This indicates that ACIW is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ACIW (3.49) is better than 64.98% 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 64.62% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that ACIW is somewhat dependend on debt financing.
The Debt to Equity ratio of ACIW (0.56) is worse than 67.15% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.56
Debt/FCF	3.02
Altman-Z	3.49

ROIC/WACC1.09

WACC11.16%

2.3 Liquidity

A Current Ratio of 1.58 indicates that ACIW should not have too much problems paying its short term obligations.
ACIW has a Current ratio of 1.58. This is comparable to the rest of the industry: ACIW outperforms 47.65% of its industry peers.
A Quick Ratio of 1.58 indicates that ACIW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.58, ACIW is in line with its industry, outperforming 48.38% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.58
Quick Ratio	1.58

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.54% 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.
ACIW shows a small growth in Revenue. In the last year, the Revenue has grown by 7.01%.
The Revenue has been growing slightly by 4.85% on average over the past years.

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.
The Revenue is expected to grow by 7.95% on average over the next years.

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

ACIW is valuated rather expensively with a Price/Earnings ratio of 17.75.
76.90% 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 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.93, which indicates a correct valuation of ACIW.
Based on the Price/Forward Earnings ratio, ACIW is valued a bit cheaper than the industry average as 79.06% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.26. ACIW is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	17.75
Fwd PE	16.93

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaply inside the industry as 85.56% of the companies are valued more expensively.
83.75% 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	15.77
EV/EBITDA	11.58

4.3 Compensation for Growth

ACIW's 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.
A more expensive valuation may be justified as ACIW's earnings are expected to grow with 14.85% in the coming years.