ACI WORLDWIDE INC (ACIW)
US0044981019 - Common Stock
We assign a fundamental rating of 5 out of 10 to ACIW. ACIW was compared to 276 industry peers in the Software industry. While ACIW has a great profitability rating, there are some minor concerns on its financial health. ACIW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACIW was profitable.
ACIW had a positive operating cash flow in the past year.
ACIW had positive earnings in each of the past 5 years.
Each year in the past 5 years ACIW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.53%, ACIW is in the better half of the industry, outperforming 77.37% of the companies in the same industry.
The Return On Equity of ACIW (9.18%) is better than 82.48% of its industry peers.
ACIW has a better Return On Invested Capital (6.99%) than 84.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACIW is below the industry average of 10.10%.
The 3 year average ROIC (6.89%) for ACIW is below the current ROIC(6.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 9.18% | ||
| ROIC | 6.99% |
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
Looking at the Profit Margin, with a value of 8.37%, ACIW is in the better half of the industry, outperforming 79.56% of the companies in the same industry.
ACIW's Profit Margin has improved in the last couple of years.
The Operating Margin of ACIW (15.34%) is better than 87.23% of its industry peers.
ACIW's Operating Margin has improved in the last couple of years.
ACIW has a Gross Margin of 50.49%. This is in the lower half of the industry: ACIW underperforms 67.15% of its industry peers.
ACIW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.34% | ||
| PM (TTM) | 8.37% | ||
| GM | 50.49% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACIW is destroying value.
The number of shares outstanding for ACIW remains at a similar level compared to 1 year ago.
The number of shares outstanding for ACIW has been reduced compared to 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 2.32. This is not the best score and indicates that ACIW is in the grey zone with still only limited risk for bankruptcy at the moment.
ACIW has a Altman-Z score of 2.32. This is comparable to the rest of the industry: ACIW outperforms 55.11% of its industry peers.
The Debt to FCF ratio of ACIW is 7.94, which is on the high side as it means it would take ACIW, 7.94 years of fcf income to pay off all of its debts.
ACIW has a Debt to FCF ratio (7.94) which is comparable to the rest of the industry.
ACIW has a Debt/Equity ratio of 0.73. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
The Debt to Equity ratio of ACIW (0.73) is worse than 66.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.71
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.36 indicates that ACIW should not have too much problems paying its short term obligations.
ACIW has a Current ratio (1.36) which is comparable to the rest of the industry.
A Quick Ratio of 1.36 indicates that ACIW should not have too much problems paying its short term obligations.
ACIW has a Quick ratio (1.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
ACIW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.13%.
ACIW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.45% yearly.
ACIW shows a small growth in Revenue. In the last year, the Revenue has grown by 2.16%.
The Revenue has been growing slightly by 7.54% on average over the past years.
EPS 1Y (TTM)-5.13%
EPS 3Y22.76%
EPS 5Y8.45%
EPS growth Q2Q38.27%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y3.92%
Revenue growth 5Y7.54%
Revenue growth Q2Q5.48%
3.2 Future
ACIW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.04% yearly.
ACIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.16% yearly.
EPS Next Y30.62%
EPS Next 2Y25.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.42%
Revenue Next 2Y7.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 30.00, ACIW can be considered very expensive at the moment.
ACIW's Price/Earnings ratio is a bit cheaper when compared to the industry. ACIW is cheaper than 75.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.92, ACIW is valued a bit more expensive.
With a Price/Forward Earnings ratio of 22.97, ACIW is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACIW indicates a somewhat cheap valuation: ACIW is cheaper than 79.93% of the companies listed in the same industry.
ACIW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 22.97 |
4.2 Price Multiples
ACIW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACIW is cheaper than 91.24% of the companies in the same industry.
ACIW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACIW is cheaper than 79.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.1 | ||
| EV/EBITDA | 12.63 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ACIW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ACIW's earnings are expected to grow with 25.04% in the coming years.
PEG (NY)0.98
PEG (5Y)3.55
EPS Next 2Y25.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ACIW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ACI WORLDWIDE INC
NASDAQ:ACIW (4/26/2024, 3:20:01 PM)
After market: 33.3 0 (0%)33.3
+0.53 (+1.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 22.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.98
PEG (5Y)3.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 9.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.34% | ||
| PM (TTM) | 8.37% | ||
| GM | 50.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-5.13%
EPS 3Y22.76%
EPS 5Y
EPS growth Q2Q
EPS Next Y30.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.16%
Revenue growth 3Y3.92%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y