ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
NASDAQ:ACIW - US0044981019 - Common Stock
49.35 USD
+0.15 (+0.3%)
49.35 USD
0 (0%)
ACIW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. ACIW has an excellent profitability rating, but there are some minor concerns on its financial health. ACIW may be a bit undervalued, certainly considering the very reasonable score on growth This makes ACIW very considerable for value investing!
1. Profitability
1.1 Basic Checks
ACIW had positive earnings in the past year.
ACIW had a positive operating cash flow in the past year.
Each year in the past 5 years ACIW has been profitable.
ACIW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACIW has a Return On Assets of 8.00%. This is amongst the best in the industry. ACIW outperforms 81.07% of its industry peers.
ACIW's Return On Equity of 18.02% is amongst the best of the industry. ACIW outperforms 85.00% of its industry peers.
With an excellent Return On Invested Capital value of 12.26%, ACIW belongs to the best of the industry, outperforming 89.64% of the companies in the same industry.
ACIW had an Average Return On Invested Capital over the past 3 years of 8.48%. This is below the industry average of 12.00%.
The 3 year average ROIC (8.48%) for ACIW is below the current ROIC(12.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 18.02% | ||
| ROIC | 12.26% |
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
ACIW's Profit Margin of 14.76% is fine compared to the rest of the industry. ACIW outperforms 79.64% of its industry peers.
ACIW's Profit Margin has improved in the last couple of years.
The Operating Margin of ACIW (20.85%) is better than 86.79% of its industry peers.
ACIW's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 50.28%, ACIW is not doing good in the industry: 68.21% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ACIW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.85% | ||
| PM (TTM) | 14.76% | ||
| GM | 50.28% |
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.
ACIW has less shares outstanding than it did 1 year ago.
ACIW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ACIW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.55 indicates that ACIW is not in any danger for bankruptcy at the moment.
ACIW has a Altman-Z score of 3.55. This is in the better half of the industry: ACIW outperforms 61.43% of its industry peers.
ACIW has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as ACIW would need 3.31 years to pay back of all of its debts.
ACIW has a better Debt to FCF ratio (3.31) than 62.86% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that ACIW is somewhat dependend on debt financing.
ACIW has a Debt to Equity ratio of 0.62. This is in the lower half of the industry: ACIW underperforms 68.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.08
WACC11.34%
2.3 Liquidity
ACIW has a Current Ratio of 1.48. This is a normal value and indicates that ACIW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.48, ACIW is in line with its industry, outperforming 49.64% of the companies in the same industry.
ACIW has a Quick Ratio of 1.48. This is a normal value and indicates that ACIW is financially healthy and should not expect problems in meeting its short term obligations.
ACIW's Quick ratio of 1.48 is in line compared to the rest of the industry. ACIW outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
ACIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.24%, which is quite impressive.
The Earnings Per Share has been growing by 27.49% on average over the past years. This is a very strong growth
ACIW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.22%.
The Revenue has been growing slightly by 4.85% on average over the past years.
EPS 1Y (TTM)40.24%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%-58.62%
Revenue 1Y (TTM)11.22%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%7.44%
3.2 Future
The Earnings Per Share is expected to grow by 22.02% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.17% on average over the next years.
EPS Next Y23.57%
EPS Next 2Y22.11%
EPS Next 3Y22.02%
EPS Next 5YN/A
Revenue Next Year8.43%
Revenue Next 2Y7.7%
Revenue Next 3Y6.17%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
Based on the Price/Earnings ratio of 20.82, the valuation of ACIW can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ACIW indicates a somewhat cheap valuation: ACIW is cheaper than 76.79% of the companies listed in the same industry.
ACIW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.13.
A Price/Forward Earnings ratio of 17.24 indicates a rather expensive valuation of ACIW.
Based on the Price/Forward Earnings ratio, ACIW is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, ACIW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 17.24 |
4.2 Price Multiples
88.21% of the companies in the same industry are more expensive than ACIW, based on the Enterprise Value to EBITDA ratio.
ACIW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ACIW is cheaper than 83.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.79 | ||
| EV/EBITDA | 12.4 |
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.
ACIW has an outstanding 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 22.02% in the coming years.
PEG (NY)0.88
PEG (5Y)0.76
EPS Next 2Y22.11%
EPS Next 3Y22.02%
5. Dividend
5.1 Amount
ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
49.35
+0.15 (+0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.45%
Inst Owner Change-2.7%
Ins Owners0.49%
Ins Owner Change1.87%
Market Cap5.09B
Analysts78.46
Price Target63.19 (28.04%)
Short Float %2.64%
Short Ratio3.62
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)114.21%
Min EPS beat(2)26.05%
Max EPS beat(2)202.37%
EPS beat(4)4
Avg EPS beat(4)90.76%
Min EPS beat(4)26.05%
Max EPS beat(4)202.37%
EPS beat(8)8
Avg EPS beat(8)117.92%
EPS beat(12)9
Avg EPS beat(12)74.79%
EPS beat(16)9
Avg EPS beat(16)54.06%
Revenue beat(2)2
Avg Revenue beat(2)4.8%
Min Revenue beat(2)3.39%
Max Revenue beat(2)6.21%
Revenue beat(4)3
Avg Revenue beat(4)4.44%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)9.83%
Revenue beat(8)6
Avg Revenue beat(8)3.31%
Revenue beat(12)8
Avg Revenue beat(12)2.37%
Revenue beat(16)11
Avg Revenue beat(16)1.86%
PT rev (1m)0%
PT rev (3m)-0.54%
EPS NQ rev (1m)17.92%
EPS NQ rev (3m)23.29%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)9.72%
Revenue NQ rev (1m)2.89%
Revenue NQ rev (3m)-2.61%
Revenue NY rev (1m)1.21%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 17.24 | ||
| P/S | 2.99 | ||
| P/FCF | 18.79 | ||
| P/OCF | 16.51 | ||
| P/B | 3.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.4 |
EPS(TTM)2.37
EY4.8%
EPS(NY)2.86
Fwd EY5.8%
FCF(TTM)2.63
FCFY5.32%
OCF(TTM)2.99
OCFY6.06%
SpS16.48
BVpS13.5
TBVpS-0.75
PEG (NY)0.88
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 18.02% | ||
| ROCE | 15% | ||
| ROIC | 12.26% | ||
| ROICexc | 13.33% | ||
| ROICexgc | 41.22% | ||
| OM | 20.85% | ||
| PM (TTM) | 14.76% | ||
| GM | 50.28% | ||
| FCFM | 15.93% |
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-Score8
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 33.1% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 5.08 | ||
| Cash Conversion | 65.93% | ||
| Profit Quality | 107.93% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.55 |
F-Score8
WACC11.34%
ROIC/WACC1.08
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)40.24%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%-58.62%
EPS Next Y23.57%
EPS Next 2Y22.11%
EPS Next 3Y22.02%
EPS Next 5YN/A
Revenue 1Y (TTM)11.22%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%7.44%
Revenue Next Year8.43%
Revenue Next 2Y7.7%
Revenue Next 3Y6.17%
Revenue Next 5YN/A
EBIT growth 1Y18.91%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year71.05%
EBIT Next 3Y24.59%
EBIT Next 5YN/A
FCF growth 1Y207.92%
FCF growth 3Y21.45%
FCF growth 5Y29.97%
OCF growth 1Y131.79%
OCF growth 3Y17.61%
OCF growth 5Y22.03%