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Exploring ACI WORLDWIDE INC (NASDAQ:ACIW)s quality characteristics.

By Mill Chart

Last update: May 6, 2024

In this article we will dive into ACI WORLDWIDE INC (NASDAQ:ACIW) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ACI WORLDWIDE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Highlighting Notable Quality Metrics of NASDAQ:ACIW.

  • ACI WORLDWIDE INC has demonstrated significant revenue growth over the past 5 years, with a 7.54% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • The ROIC excluding cash and goodwill of ACI WORLDWIDE INC stands at 29.98%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • ACI WORLDWIDE INC maintains a healthy Debt/Free Cash Flow Ratio of 4.96, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a favorable Profit Quality (5-year) ratio of 163.0%, ACI WORLDWIDE INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • With a robust 5-year EBIT growth of 11.69%, ACI WORLDWIDE INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • ACI WORLDWIDE INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to ACIW. ACIW was compared to 277 industry peers in the Software industry. ACIW scores excellent on profitability, but 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! With these ratings, ACIW could be worth investigating further for value investing!.

Check the latest full fundamental report of ACIW for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.