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Reasonable Growth, Debt Levels, and a High ROIC Make ACI WORLDWIDE INC (NASDAQ:ACIW) Appealing to Quality Investors.

By Mill Chart

Last update: Jul 11, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ACI WORLDWIDE INC (NASDAQ:ACIW) is suited for quality investing. Investors should of course do their own research, but we spotted ACI WORLDWIDE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

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Looking into the quality metrics of ACI WORLDWIDE INC

  • ACI WORLDWIDE INC has shown strong performance in revenue growth over the past 5 years, with a 7.54% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • ACI WORLDWIDE INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 29.98% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • 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.
  • ACI WORLDWIDE INC exhibits impressive Profit Quality (5-year) with a 163.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • ACI WORLDWIDE INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 11.69%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • ACI WORLDWIDE INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for NASDAQ:ACIW?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall ACIW gets a fundamental rating of 5 out of 10. We evaluated ACIW against 276 industry peers in the Software industry. ACIW has an excellent profitability rating, but there are some minor concerns on its financial health. ACIW is not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of ACIW

More quality stocks can be found in our Caviar Cruise screen.


Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.