ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
USA - NASDAQ:ACIW - US0044981019 - Common Stock
48.96 USD
-1.67 (-3.3%)
48.96 USD
0 (0%)
ACIW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 281 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.
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.
In the past 5 years ACIW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ACIW (8.00%) is better than 82.11% of its industry peers.
Looking at the Return On Equity, with a value of 18.02%, ACIW belongs to the top of the industry, outperforming 85.61% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.26%, ACIW belongs to the top of the industry, outperforming 89.47% 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 11.85%.
The last Return On Invested Capital (12.26%) for ACIW is above the 3 year average (8.48%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 14.76%. This is in the better half of the industry: ACIW outperforms 78.60% of its industry peers.
In the last couple of years the Profit Margin of ACIW has grown nicely.
ACIW's Operating Margin of 20.85% is amongst the best of the industry. ACIW outperforms 86.67% of its industry peers.
ACIW's Operating Margin has improved in the last couple of years.
ACIW's Gross Margin of 50.28% is on the low side compared to the rest of the industry. ACIW is outperformed by 67.37% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACIW is creating some value.
ACIW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ACIW has been reduced compared to 5 years ago.
ACIW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.54 indicates that ACIW is not in any danger for bankruptcy at the moment.
The Altman-Z score of ACIW (3.54) is better than 62.81% of its industry peers.
The Debt to FCF ratio of ACIW is 3.31, which is a good value as it means it would take ACIW, 3.31 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ACIW (3.31) is better than 63.16% of its industry peers.
ACIW has a Debt/Equity ratio of 0.62. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
ACIW has a worse Debt to Equity ratio (0.62) than 68.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.11
WACC11.07%
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.
With a Current ratio value of 1.48, ACIW perfoms like the industry average, outperforming 47.72% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that ACIW should not have too much problems paying its short term obligations.
The Quick ratio of ACIW (1.48) is comparable to the rest of the industry.
| 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 17.54%, which is quite good.
ACIW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.49% yearly.
The Revenue has grown by 9.76% in the past year. This is quite good.
ACIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.85% yearly.
EPS 1Y (TTM)17.54%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%14.29%
Revenue 1Y (TTM)9.76%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%6.78%
3.2 Future
Based on estimates for the next years, ACIW will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.22% on average per year.
Based on estimates for the next years, ACIW will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y22.45%
EPS Next 2Y16.39%
EPS Next 3Y12.22%
EPS Next 5YN/A
Revenue Next Year8.49%
Revenue Next 2Y7.67%
Revenue Next 3Y6.19%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 19.74 indicates a rather expensive valuation of ACIW.
Based on the Price/Earnings ratio, ACIW is valued a bit cheaper than 76.49% of the companies in the same industry.
ACIW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
ACIW is valuated rather expensively with a Price/Forward Earnings ratio of 18.82.
74.74% of the companies in the same industry are more expensive than ACIW, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 32.73. ACIW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 18.82 |
4.2 Price Multiples
ACIW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACIW is cheaper than 87.02% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACIW indicates a rather cheap valuation: ACIW is cheaper than 80.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.65 | ||
| EV/EBITDA | 12.71 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
ACIW's earnings are expected to grow with 12.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)0.72
EPS Next 2Y16.39%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.96
-1.67 (-3.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.55%
Inst Owner Change-0.29%
Ins Owners0.49%
Ins Owner Change3.18%
Market Cap5.05B
Revenue(TTM)1.59B
Net Income(TTM)251.05M
Analysts81.54
Price Target63.26 (29.21%)
Short Float %2.86%
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)0.1%
PT rev (3m)0.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.6%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 18.82 | ||
| P/S | 2.97 | ||
| P/FCF | 18.65 | ||
| P/OCF | 16.38 | ||
| P/B | 3.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.71 |
EPS(TTM)2.48
EY5.07%
EPS(NY)2.6
Fwd EY5.31%
FCF(TTM)2.63
FCFY5.36%
OCF(TTM)2.99
OCFY6.11%
SpS16.48
BVpS13.5
TBVpS-0.75
PEG (NY)0.88
PEG (5Y)0.72
Graham Number27.45
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%
ROICexgc growth 3Y3.32%
ROICexgc 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 | 1.89 | ||
| Cap/Depr | 37.98% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 5.08 | ||
| Cash Conversion | 68.04% | ||
| Profit Quality | 107.93% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.54 |
F-Score8
WACC11.07%
ROIC/WACC1.11
Cap/Depr(3y)34.27%
Cap/Depr(5y)34.01%
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)17.54%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%14.29%
EPS Next Y22.45%
EPS Next 2Y16.39%
EPS Next 3Y12.22%
EPS Next 5YN/A
Revenue 1Y (TTM)9.76%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%6.78%
Revenue Next Year8.49%
Revenue Next 2Y7.67%
Revenue Next 3Y6.19%
Revenue Next 5YN/A
EBIT growth 1Y18.91%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year74.82%
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%
ACI WORLDWIDE INC / ACIW FAQ
What is the fundamental rating for ACIW stock?
ChartMill assigns a fundamental rating of 6 / 10 to ACIW.
What is the valuation status of ACI WORLDWIDE INC (ACIW) stock?
ChartMill assigns a valuation rating of 6 / 10 to ACI WORLDWIDE INC (ACIW). This can be considered as Fairly Valued.
What is the profitability of ACIW stock?
ACI WORLDWIDE INC (ACIW) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ACIW stock?
The Price/Earnings (PE) ratio for ACI WORLDWIDE INC (ACIW) is 19.74 and the Price/Book (PB) ratio is 3.63.
What is the financial health of ACI WORLDWIDE INC (ACIW) stock?
The financial health rating of ACI WORLDWIDE INC (ACIW) is 5 / 10.