ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
NASDAQ:ACIW - Nasdaq - US0044981019 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ACIW. ACIW was compared to 286 industry peers in the Software industry. While ACIW has a great profitability rating, there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: ACIW is growing strongly while it also seems undervalued. These ratings could make ACIW a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
ACIW had positive earnings in the past year.
ACIW had a positive operating cash flow in the past year.
In the past 5 years ACIW has always been profitable.
Each year in the past 5 years ACIW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ACIW (7.34%) is better than 81.72% of its industry peers.
ACIW has a Return On Equity of 17.09%. This is amongst the best in the industry. ACIW outperforms 85.66% of its industry peers.
The Return On Invested Capital of ACIW (11.33%) is better than 88.17% of its industry peers.
ACIW had an Average Return On Invested Capital over the past 3 years of 6.89%. This is significantly below the industry average of 12.10%.
The last Return On Invested Capital (11.33%) for ACIW is above the 3 year average (6.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 17.09% | ||
| ROIC | 11.33% |
ROA(3y)4%
ROA(5y)3.24%
ROE(3y)10.45%
ROE(5y)8.66%
ROIC(3y)6.89%
ROIC(5y)6.12%
1.3 Margins
With an excellent Profit Margin value of 14.04%, ACIW belongs to the best of the industry, outperforming 81.72% of the companies in the same industry.
In the last couple of years the Profit Margin of ACIW has grown nicely.
Looking at the Operating Margin, with a value of 22.20%, ACIW belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
ACIW's Operating Margin has improved in the last couple of years.
ACIW has a worse Gross Margin (52.20%) than 69.18% of its industry peers.
In the last couple of years the Gross Margin of ACIW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.2% | ||
| PM (TTM) | 14.04% | ||
| GM | 52.2% |
OM growth 3Y1.63%
OM growth 5Y3.86%
PM growth 3Y14.2%
PM growth 5Y4.16%
GM growth 3Y-1.13%
GM growth 5Y-2.53%
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 about the same amount of shares outstanding.
ACIW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ACIW has been reduced compared to a year ago.
2.2 Solvency
ACIW has an Altman-Z score of 3.68. This indicates that ACIW is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.68, ACIW perfoms like the industry average, outperforming 55.20% of the companies in the same industry.
ACIW has a debt to FCF ratio of 3.56. This is a good value and a sign of high solvency as ACIW would need 3.56 years to pay back of all of its debts.
ACIW has a better Debt to FCF ratio (3.56) than 61.29% of its industry peers.
ACIW has a Debt/Equity ratio of 0.72. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
ACIW has a worse Debt to Equity ratio (0.72) than 71.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.04
WACC10.87%
2.3 Liquidity
ACIW has a Current Ratio of 1.56. 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 of 1.56. This is comparable to the rest of the industry: ACIW outperforms 45.88% of its industry peers.
A Quick Ratio of 1.56 indicates that ACIW should not have too much problems paying its short term obligations.
ACIW's Quick ratio of 1.56 is in line compared to the rest of the industry. ACIW outperforms 46.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
ACIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 163.75%, which is quite impressive.
The Earnings Per Share has been growing by 8.45% on average over the past years. This is quite good.
Looking at the last year, ACIW shows a quite strong growth in Revenue. The Revenue has grown by 13.31% in the last year.
Measured over the past years, ACIW shows a small growth in Revenue. The Revenue has been growing by 7.54% on average per year.
EPS 1Y (TTM)163.75%
EPS 3Y22.76%
EPS 5Y8.45%
EPS Q2Q%120%
Revenue 1Y (TTM)13.31%
Revenue growth 3Y3.92%
Revenue growth 5Y7.54%
Sales Q2Q%24.44%
3.2 Future
Based on estimates for the next years, ACIW will show a very strong growth in Earnings Per Share. The EPS will grow by 24.63% on average per year.
Based on estimates for the next years, ACIW will show a quite strong growth in Revenue. The Revenue will grow by 8.02% on average per year.
EPS Next Y43.96%
EPS Next 2Y31.44%
EPS Next 3Y24.63%
EPS Next 5YN/A
Revenue Next Year9.58%
Revenue Next 2Y8.26%
Revenue Next 3Y8.02%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.76 indicates a quite expensive valuation of ACIW.
Compared to the rest of the industry, the Price/Earnings ratio of ACIW indicates a somewhat cheap valuation: ACIW is cheaper than 76.70% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ACIW to the average of the S&P500 Index (28.51), we can say ACIW is valued inline with the index average.
The Price/Forward Earnings ratio is 28.34, which means the current valuation is very expensive for ACIW.
70.97% of the companies in the same industry are more expensive than ACIW, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 93.88. ACIW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 28.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaper than 89.25% 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 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.43 | ||
| EV/EBITDA | 13.72 |
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 24.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)3.05
EPS Next 2Y31.44%
EPS Next 3Y24.63%
5. Dividend
5.1 Amount
No dividends for ACIW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ACI WORLDWIDE INC
NASDAQ:ACIW (1/30/2025, 8:02:42 PM)
After market: 54.35 0 (0%)54.35
+0.66 (+1.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.08%
Inst Owner Change-0.11%
Ins Owners0.82%
Ins Owner Change0.18%
Market Cap5.70B
Analysts78.33
Price Target65.48 (20.48%)
Short Float %1.93%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)200.89%
Min EPS beat(2)78.32%
Max EPS beat(2)323.46%
EPS beat(4)4
Avg EPS beat(4)119.34%
Min EPS beat(4)12.81%
Max EPS beat(4)323.46%
EPS beat(8)6
Avg EPS beat(8)82.15%
EPS beat(12)6
Avg EPS beat(12)49.68%
EPS beat(16)8
Avg EPS beat(16)38.73%
Revenue beat(2)2
Avg Revenue beat(2)7.28%
Min Revenue beat(2)4.72%
Max Revenue beat(2)9.83%
Revenue beat(4)3
Avg Revenue beat(4)3.39%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)9.83%
Revenue beat(8)6
Avg Revenue beat(8)3.13%
Revenue beat(12)9
Avg Revenue beat(12)1.93%
Revenue beat(16)11
Avg Revenue beat(16)1.39%
PT rev (1m)0%
PT rev (3m)13.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.43%
EPS NY rev (1m)0%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 28.34 | ||
| P/S | 3.52 | ||
| P/FCF | 20.43 | ||
| P/OCF | 17.93 | ||
| P/B | 4.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.72 |
EPS(TTM)2.11
EY3.88%
EPS(NY)1.92
Fwd EY3.53%
FCF(TTM)2.66
FCFY4.9%
OCF(TTM)3.03
OCFY5.58%
SpS15.42
BVpS12.68
TBVpS-1.52
PEG (NY)0.59
PEG (5Y)3.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 17.09% | ||
| ROCE | 14.99% | ||
| ROIC | 11.33% | ||
| ROICexc | 12.23% | ||
| ROICexgc | 37.21% | ||
| OM | 22.2% | ||
| PM (TTM) | 14.04% | ||
| GM | 52.2% | ||
| FCFM | 17.25% |
ROA(3y)4%
ROA(5y)3.24%
ROE(3y)10.45%
ROE(5y)8.66%
ROIC(3y)6.89%
ROIC(5y)6.12%
ROICexc(3y)7.31%
ROICexc(5y)6.49%
ROICexgc(3y)26%
ROICexgc(5y)24.51%
ROCE(3y)9.12%
ROCE(5y)8.1%
ROICexcg growth 3Y-5.11%
ROICexcg growth 5Y2.42%
ROICexc growth 3Y6.74%
ROICexc growth 5Y5.38%
OM growth 3Y1.63%
OM growth 5Y3.86%
PM growth 3Y14.2%
PM growth 5Y4.16%
GM growth 3Y-1.13%
GM growth 5Y-2.53%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.56 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 33.64% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 4.93 | ||
| Cash Conversion | 66.97% | ||
| Profit Quality | 122.84% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 3.68 |
F-Score8
WACC10.87%
ROIC/WACC1.04
Cap/Depr(3y)32.08%
Cap/Depr(5y)33.72%
Cap/Sales(3y)2.91%
Cap/Sales(5y)3.23%
Profit Quality(3y)105.8%
Profit Quality(5y)162.51%
High Growth Momentum
Growth
EPS 1Y (TTM)163.75%
EPS 3Y22.76%
EPS 5Y8.45%
EPS Q2Q%120%
EPS Next Y43.96%
EPS Next 2Y31.44%
EPS Next 3Y24.63%
EPS Next 5YN/A
Revenue 1Y (TTM)13.31%
Revenue growth 3Y3.92%
Revenue growth 5Y7.54%
Sales Q2Q%24.44%
Revenue Next Year9.58%
Revenue Next 2Y8.26%
Revenue Next 3Y8.02%
Revenue Next 5YN/A
EBIT growth 1Y80.39%
EBIT growth 3Y5.61%
EBIT growth 5Y11.69%
EBIT Next Year106.57%
EBIT Next 3Y34.67%
EBIT Next 5YN/A
FCF growth 1Y100.62%
FCF growth 3Y-21.31%
FCF growth 5Y-1.36%
OCF growth 1Y78.64%
OCF growth 3Y-18.81%
OCF growth 5Y-1.73%