ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
NASDAQ:ACIW - Nasdaq - US0044981019 - Common Stock - Currency: USD
Taking everything into account, ACIW scores 6 out of 10 in our fundamental rating. ACIW was compared to 282 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. 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.
In the past 5 years ACIW always reported a positive cash flow from operatings.
1.2 Ratios
ACIW's Return On Assets of 8.42% is amongst the best of the industry. ACIW outperforms 83.33% of its industry peers.
ACIW's Return On Equity of 18.19% is amongst the best of the industry. ACIW outperforms 85.46% of its industry peers.
ACIW's Return On Invested Capital of 12.54% is amongst the best of the industry. ACIW outperforms 90.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACIW is below the industry average of 12.26%.
The last Return On Invested Capital (12.54%) for ACIW is above the 3 year average (8.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 18.19% | ||
| ROIC | 12.54% |
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
With an excellent Profit Margin value of 16.12%, ACIW belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
In the last couple of years the Profit Margin of ACIW has grown nicely.
The Operating Margin of ACIW (22.00%) is better than 89.72% of its industry peers.
ACIW's Operating Margin has improved in the last couple of years.
ACIW has a worse Gross Margin (51.34%) than 66.67% of its industry peers.
ACIW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22% | ||
| PM (TTM) | 16.12% | ||
| GM | 51.34% |
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 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.
Compared to 1 year ago, ACIW has a worse debt to assets ratio.
2.2 Solvency
ACIW has an Altman-Z score of 3.44. This indicates that ACIW is financially healthy and has little risk of bankruptcy at the moment.
ACIW has a better Altman-Z score (3.44) than 61.35% of its industry peers.
ACIW has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as ACIW would need 3.05 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.05, ACIW is doing good in the industry, outperforming 64.54% of the companies in the same industry.
ACIW has a Debt/Equity ratio of 0.55. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
ACIW's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. ACIW is outperformed by 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.45
WACC8.62%
2.3 Liquidity
ACIW has a Current Ratio of 1.50. This is a normal value and indicates that ACIW is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.50, ACIW perfoms like the industry average, outperforming 47.87% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that ACIW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, ACIW is in line with its industry, outperforming 48.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.55% 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.
The Revenue has grown by 13.11% in the past year. This is quite good.
ACIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.85% yearly.
EPS 1Y (TTM)89.55%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%885.71%
Revenue 1Y (TTM)13.11%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%24.85%
3.2 Future
The Earnings Per Share is expected to grow by 11.22% on average over the next years. This is quite good.
ACIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.90% yearly.
EPS Next Y24.31%
EPS Next 2Y15.01%
EPS Next 3Y11.22%
EPS Next 5YN/A
Revenue Next Year7.08%
Revenue Next 2Y6.93%
Revenue Next 3Y5.9%
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
ACIW is valuated rather expensively with a Price/Earnings ratio of 18.19.
83.33% 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 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.19, the valuation of ACIW can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACIW indicates a rather cheap valuation: ACIW is cheaper than 81.56% of the companies listed in the same industry.
ACIW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.19 | ||
| Fwd PE | 18.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACIW is valued cheaper than 90.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACIW is valued cheaper than 86.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.47 | ||
| EV/EBITDA | 11.05 |
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.
PEG (NY)0.75
PEG (5Y)0.66
EPS Next 2Y15.01%
EPS Next 3Y11.22%
5. Dividend
5.1 Amount
ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.21
+0.72 (+1.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.71%
Inst Owner Change0.92%
Ins Owners0.93%
Ins Owner Change1.84%
Market Cap4.85B
Analysts78.46
Price Target63.19 (36.75%)
Short Float %2.37%
Short Ratio3.25
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)129.34%
Min EPS beat(2)56.3%
Max EPS beat(2)202.37%
EPS beat(4)4
Avg EPS beat(4)165.12%
Min EPS beat(4)56.3%
Max EPS beat(4)323.46%
EPS beat(8)8
Avg EPS beat(8)121.91%
EPS beat(12)8
Avg EPS beat(12)72.46%
EPS beat(16)8
Avg EPS beat(16)49.83%
Revenue beat(2)1
Avg Revenue beat(2)2.27%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)6.21%
Revenue beat(4)3
Avg Revenue beat(4)4.77%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)9.83%
Revenue beat(8)6
Avg Revenue beat(8)3.33%
Revenue beat(12)8
Avg Revenue beat(12)2.18%
Revenue beat(16)10
Avg Revenue beat(16)1.55%
PT rev (1m)-0.54%
PT rev (3m)-4.68%
EPS NQ rev (1m)-66.43%
EPS NQ rev (3m)-74.13%
EPS NY rev (1m)10.38%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-3.96%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.19 | ||
| Fwd PE | 18.19 | ||
| P/S | 2.9 | ||
| P/FCF | 17.47 | ||
| P/OCF | 15.45 | ||
| P/B | 3.27 | ||
| P/tB | 399.95 | ||
| EV/EBITDA | 11.05 |
EPS(TTM)2.54
EY5.5%
EPS(NY)2.54
Fwd EY5.5%
FCF(TTM)2.65
FCFY5.73%
OCF(TTM)2.99
OCFY6.47%
SpS15.95
BVpS14.13
TBVpS0.12
PEG (NY)0.75
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 18.19% | ||
| ROCE | 15.34% | ||
| ROIC | 12.54% | ||
| ROICexc | 13.87% | ||
| ROICexgc | 43.07% | ||
| OM | 22% | ||
| PM (TTM) | 16.12% | ||
| GM | 51.34% | ||
| FCFM | 16.59% |
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-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 30.29% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 5.58 | ||
| Cash Conversion | 64.36% | ||
| Profit Quality | 102.89% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.44 |
F-Score9
WACC8.62%
ROIC/WACC1.45
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)89.55%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%885.71%
EPS Next Y24.31%
EPS Next 2Y15.01%
EPS Next 3Y11.22%
EPS Next 5YN/A
Revenue 1Y (TTM)13.11%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%24.85%
Revenue Next Year7.08%
Revenue Next 2Y6.93%
Revenue Next 3Y5.9%
Revenue Next 5YN/A
EBIT growth 1Y44.27%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year70.94%
EBIT Next 3Y24.59%
EBIT Next 5YN/A
FCF growth 1Y142.39%
FCF growth 3Y21.45%
FCF growth 5Y29.97%
OCF growth 1Y102.93%
OCF growth 3Y17.61%
OCF growth 5Y22.03%