ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
USA - NASDAQ:ACIW - US0044981019 - Common Stock
51.48 USD
+0.48 (+0.94%)
51.48 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ACIW. ACIW was compared to 282 industry peers in the Software industry. ACIW scores excellent on profitability, but there are some minor concerns on its financial health. ACIW has a correct valuation and a medium growth rate.
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
With an excellent Return On Assets value of 8.00%, ACIW belongs to the best of the industry, outperforming 81.56% of the companies in the same industry.
The Return On Equity of ACIW (18.02%) is better than 85.11% of its industry peers.
ACIW's Return On Invested Capital of 12.26% is amongst the best of the industry. ACIW outperforms 89.36% of its industry peers.
ACIW had an Average Return On Invested Capital over the past 3 years of 8.48%. This is below the industry average of 11.88%.
The 3 year average ROIC (8.48%) for ACIW is below the current ROIC(12.26%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 14.76%, ACIW is in the better half of the industry, outperforming 79.43% of the companies in the same industry.
ACIW's Profit Margin has improved in the last couple of years.
ACIW has a better Operating Margin (20.85%) than 86.88% of its industry peers.
ACIW's Operating Margin has improved in the last couple of years.
ACIW has a worse Gross Margin (50.28%) than 67.73% 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 | 20.85% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACIW is creating some value.
Compared to 1 year ago, ACIW has less shares outstanding
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 3.63 indicates that ACIW is not in any danger for bankruptcy at the moment.
ACIW's Altman-Z score of 3.63 is fine compared to the rest of the industry. ACIW outperforms 61.35% 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.
The Debt to FCF ratio of ACIW (3.31) is better than 62.41% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that ACIW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, ACIW is doing worse than 68.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.08
WACC11.33%
2.3 Liquidity
A Current Ratio of 1.48 indicates that ACIW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, ACIW is in line with its industry, outperforming 48.58% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that ACIW should not have too much problems paying its short term obligations.
ACIW's Quick ratio of 1.48 is in line compared to the rest of the industry. ACIW outperforms 48.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.24% over the past year.
The Earnings Per Share has been growing by 27.49% on average over the past years. This is a very strong growth
Looking at the last year, ACIW shows a quite strong growth in Revenue. The Revenue has grown by 11.22% in the last year.
Measured over the past years, ACIW shows a small growth in Revenue. The Revenue has been growing by 4.85% on average per year.
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 12.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.17% on average over the next years.
EPS Next Y22.63%
EPS Next 2Y16.51%
EPS Next 3Y12.22%
EPS Next 5YN/A
Revenue Next Year8.49%
Revenue Next 2Y7.73%
Revenue Next 3Y6.17%
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.
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
With a Price/Earnings ratio of 21.72, ACIW is valued on the expensive side.
Based on the Price/Earnings ratio, ACIW is valued a bit cheaper than the industry average as 75.53% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.50. ACIW is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 19.75 indicates a rather expensive valuation of ACIW.
75.18% of the companies in the same industry are more expensive than ACIW, based on the Price/Forward Earnings ratio.
ACIW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 19.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaper than 86.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACIW is valued cheaper than 80.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.6 | ||
| EV/EBITDA | 13.28 |
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.
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)0.96
PEG (5Y)0.79
EPS Next 2Y16.51%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
51.48
+0.48 (+0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.55%
Inst Owner Change0.06%
Ins Owners0.49%
Ins Owner Change3.94%
Market Cap5.31B
Analysts81.54
Price Target63.19 (22.75%)
Short Float %3.3%
Short Ratio3.6
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)0%
EPS NQ rev (3m)23.71%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 19.75 | ||
| P/S | 3.12 | ||
| P/FCF | 19.6 | ||
| P/OCF | 17.22 | ||
| P/B | 3.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.28 |
EPS(TTM)2.37
EY4.6%
EPS(NY)2.61
Fwd EY5.06%
FCF(TTM)2.63
FCFY5.1%
OCF(TTM)2.99
OCFY5.81%
SpS16.48
BVpS13.5
TBVpS-0.75
PEG (NY)0.96
PEG (5Y)0.79
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 | 1.89 | ||
| Cap/Depr | 37.98% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 5.08 | ||
| Cash Conversion | 68.04% | ||
| Profit Quality | 107.93% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.63 |
F-Score8
WACC11.33%
ROIC/WACC1.08
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)40.24%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%-58.62%
EPS Next Y22.63%
EPS Next 2Y16.51%
EPS Next 3Y12.22%
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 Year74.82%
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%