ACI WORLDWIDE INC (ACIW) Fundamental Analysis & Valuation
NASDAQ:ACIW • US0044981019
42.55 USD
-0.31 (-0.72%)
At close: Mar 6, 2026
42.55 USD
0 (0%)
After Hours: 3/6/2026, 8:00:00 PM
This ACIW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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 has a great profitability rating, there are some minor concerns on its financial health. ACIW is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make ACIW suitable for value investing!
1. ACIW Profitability Analysis
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.
- In the past 5 years ACIW always reported a positive cash flow from operatings.
1.2 Ratios
- ACIW has a Return On Assets of 7.30%. This is in the better half of the industry: ACIW outperforms 78.99% of its industry peers.
- Looking at the Return On Equity, with a value of 14.92%, ACIW belongs to the top of the industry, outperforming 80.80% of the companies in the same industry.
- ACIW has a Return On Invested Capital of 11.03%. This is amongst the best in the industry. ACIW outperforms 87.32% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ACIW is in line with the industry average of 10.72%.
- The last Return On Invested Capital (11.03%) for ACIW is above the 3 year average (9.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 14.92% | ||
| ROIC | 11.03% |
ROA(3y)5.85%
ROA(5y)5.2%
ROE(3y)12.79%
ROE(5y)12.11%
ROIC(3y)9.42%
ROIC(5y)8.46%
1.3 Margins
- ACIW's Profit Margin of 12.88% is fine compared to the rest of the industry. ACIW outperforms 76.45% of its industry peers.
- In the last couple of years the Profit Margin of ACIW has grown nicely.
- Looking at the Operating Margin, with a value of 19.40%, ACIW belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
- ACIW's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 48.99%, ACIW is not doing good in the industry: 71.01% of the companies in the same industry are doing better.
- 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 | 19.4% | ||
| PM (TTM) | 12.88% | ||
| GM | 48.99% |
OM growth 3Y9.8%
OM growth 5Y5.65%
PM growth 3Y8.8%
PM growth 5Y18.05%
GM growth 3Y-1.36%
GM growth 5Y-1.28%
2. ACIW Health Analysis
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.
- The number of shares outstanding for ACIW has been reduced compared to 1 year ago.
- The number of shares outstanding for ACIW has been reduced compared to 5 years ago.
- Compared to 1 year ago, ACIW has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.55 indicates that ACIW is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.55, ACIW is doing good in the industry, outperforming 68.12% of the companies in the same industry.
- ACIW has a debt to FCF ratio of 2.82. This is a good value and a sign of high solvency as ACIW would need 2.82 years to pay back of all of its debts.
- ACIW's Debt to FCF ratio of 2.82 is fine compared to the rest of the industry. ACIW outperforms 63.41% of its industry peers.
- A Debt/Equity ratio of 0.51 indicates that ACIW is somewhat dependend on debt financing.
- ACIW's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. ACIW is outperformed by 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 3.55 |
ROIC/WACC0.99
WACC11.14%
2.3 Liquidity
- ACIW has a Current Ratio of 1.54. This is a normal value and indicates that ACIW is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of ACIW (1.54) is comparable to the rest of the industry.
- A Quick Ratio of 1.54 indicates that ACIW should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.54, ACIW perfoms like the industry average, outperforming 47.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. ACIW Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 13.02% over the past year.
- Measured over the past years, ACIW shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.32% on average per year.
- ACIW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.38%.
- ACIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.34% yearly.
EPS 1Y (TTM)13.02%
EPS 3Y22.86%
EPS 5Y29.32%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y7.37%
Revenue growth 5Y6.34%
Sales Q2Q%6.3%
3.2 Future
- The Earnings Per Share is expected to grow by 19.47% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.87% on average over the next years.
EPS Next Y26.29%
EPS Next 2Y19.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.1%
Revenue Next 2Y7.87%
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. ACIW Valuation Analysis
4.1 Price/Earnings Ratio
- ACIW is valuated rather expensively with a Price/Earnings ratio of 19.61.
- Based on the Price/Earnings ratio, ACIW is valued a bit cheaper than 73.55% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.29. ACIW is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 15.53 indicates a correct valuation of ACIW.
- 75.00% 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 (24.57), we can say ACIW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 15.53 |
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 86.23% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ACIW is valued cheaply inside the industry as 81.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.95 | ||
| EV/EBITDA | 11.36 |
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.
- ACIW's earnings are expected to grow with 19.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)0.67
EPS Next 2Y19.47%
EPS Next 3YN/A
5. ACIW Dividend Analysis
5.1 Amount
- ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ACIW Fundamentals: All Metrics, Ratios and Statistics
42.55
-0.31 (-0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners102.56%
Inst Owner Change-3.73%
Ins Owners0.49%
Ins Owner Change2.63%
Market Cap4.33B
Revenue(TTM)1.76B
Net Income(TTM)226.66M
Analysts84.62
Price Target63.21 (48.55%)
Short Float %3.54%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)-8.2%
Min EPS beat(2)-24.02%
Max EPS beat(2)7.62%
EPS beat(4)3
Avg EPS beat(4)53.01%
Min EPS beat(4)-24.02%
Max EPS beat(4)202.37%
EPS beat(8)7
Avg EPS beat(8)91.61%
EPS beat(12)10
Avg EPS beat(12)78.16%
EPS beat(16)10
Avg EPS beat(16)54.39%
Revenue beat(2)2
Avg Revenue beat(2)1.62%
Min Revenue beat(2)1.61%
Max Revenue beat(2)1.63%
Revenue beat(4)4
Avg Revenue beat(4)3.21%
Min Revenue beat(4)1.61%
Max Revenue beat(4)6.21%
Revenue beat(8)7
Avg Revenue beat(8)3.36%
Revenue beat(12)9
Avg Revenue beat(12)2.7%
Revenue beat(16)12
Avg Revenue beat(16)2.09%
PT rev (1m)-5.56%
PT rev (3m)-0.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.44%
EPS NY rev (1m)0%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 15.53 | ||
| P/S | 2.46 | ||
| P/FCF | 14.95 | ||
| P/OCF | 13.41 | ||
| P/B | 2.85 | ||
| P/tB | 68.31 | ||
| EV/EBITDA | 11.36 |
EPS(TTM)2.17
EY5.1%
EPS(NY)2.74
Fwd EY6.44%
FCF(TTM)2.85
FCFY6.69%
OCF(TTM)3.17
OCFY7.46%
SpS17.3
BVpS14.93
TBVpS0.62
PEG (NY)0.75
PEG (5Y)0.67
Graham Number27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 14.92% | ||
| ROCE | 14.23% | ||
| ROIC | 11.03% | ||
| ROICexc | 12.01% | ||
| ROICexgc | 35.42% | ||
| OM | 19.4% | ||
| PM (TTM) | 12.88% | ||
| GM | 48.99% | ||
| FCFM | 16.45% |
ROA(3y)5.85%
ROA(5y)5.2%
ROE(3y)12.79%
ROE(5y)12.11%
ROIC(3y)9.42%
ROIC(5y)8.46%
ROICexc(3y)10.25%
ROICexc(5y)9.11%
ROICexgc(3y)31.13%
ROICexgc(5y)29.84%
ROCE(3y)12.15%
ROCE(5y)10.91%
ROICexgc growth 3Y12.1%
ROICexgc growth 5Y4.38%
ROICexc growth 3Y18.3%
ROICexc growth 5Y13.48%
OM growth 3Y9.8%
OM growth 5Y5.65%
PM growth 3Y8.8%
PM growth 5Y18.05%
GM growth 3Y-1.36%
GM growth 5Y-1.28%
F-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.82 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 34.4% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 5.33 | ||
| Cash Conversion | 73.64% | ||
| Profit Quality | 127.72% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 3.55 |
F-Score7
WACC11.14%
ROIC/WACC0.99
Cap/Depr(3y)35.29%
Cap/Depr(5y)34.25%
Cap/Sales(3y)2.44%
Cap/Sales(5y)2.69%
Profit Quality(3y)129.92%
Profit Quality(5y)119.91%
High Growth Momentum
Growth
EPS 1Y (TTM)13.02%
EPS 3Y22.86%
EPS 5Y29.32%
EPS Q2Q%-33.33%
EPS Next Y26.29%
EPS Next 2Y19.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.38%
Revenue growth 3Y7.37%
Revenue growth 5Y6.34%
Sales Q2Q%6.3%
Revenue Next Year8.1%
Revenue Next 2Y7.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.79%
EBIT growth 3Y17.89%
EBIT growth 5Y12.35%
EBIT Next Year56.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.72%
FCF growth 3Y40.89%
FCF growth 5Y1.53%
OCF growth 1Y-10.01%
OCF growth 3Y31.06%
OCF growth 5Y0.5%
ACI WORLDWIDE INC / ACIW FAQ
What is the fundamental rating for ACIW stock?
ChartMill assigns a fundamental rating of 6 / 10 to ACIW.
What is the valuation status for ACIW stock?
ChartMill assigns a valuation rating of 7 / 10 to ACI WORLDWIDE INC (ACIW). This can be considered as Undervalued.
What is the profitability of ACIW stock?
ACI WORLDWIDE INC (ACIW) has a profitability rating of 8 / 10.
What is the valuation of ACI WORLDWIDE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ACI WORLDWIDE INC (ACIW) is 19.61 and the Price/Book (PB) ratio is 2.85.