ACI Worldwide Inc (NASDAQ:ACIW) emerged from our Peter Lynch-inspired screen as a potential candidate for long-term investors seeking growth at a reasonable price (GARP). The company, which specializes in real-time electronic payment solutions, demonstrates a balance of steady earnings growth, solid profitability, and reasonable valuation metrics.
Key Strengths
- Earnings Growth: ACIW has delivered an impressive 5-year average EPS growth of 27.49%, well above the minimum 15% threshold in our screen. Recent annual EPS growth of 89.55% indicates strong momentum.
- Profitability: The company’s return on equity (ROE) stands at 18.19%, exceeding the 15% benchmark, while its operating margin of 22% outperforms nearly 90% of industry peers.
- Valuation: With a PEG ratio (5-year) of 1.12, ACIW trades close to fair value relative to its growth. Its P/E ratio of 19.24 is also below both the industry and S&P 500 averages.
- Financial Health: ACIW maintains a manageable debt-to-equity ratio of 0.55 and a current ratio of 1.50, indicating sufficient liquidity to meet short-term obligations.
Fundamental Snapshot
ACIW’s fundamental analysis highlights a strong profitability profile, though there are minor concerns regarding debt levels compared to peers. The company generates healthy cash flows and has reduced its share count over time—a positive sign for shareholders.
For a deeper look, review the full fundamental report here.
Our Peter Lynch Strategy screener provides more stocks that fit this strategy and is updated regularly.
Disclaimer
This is not investing advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.
