ACI WORLDWIDE INC (ACIW) Stock Fundamental Analysis
NASDAQ:ACIW - Nasdaq - US0044981019 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ACIW. ACIW was compared to 283 industry peers in the Software industry. ACIW scores excellent on profitability, but 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.
In the past year ACIW had a positive cash flow from operations.
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
With an excellent Return On Assets value of 8.42%, ACIW belongs to the best of the industry, outperforming 83.39% of the companies in the same industry.
ACIW has a Return On Equity of 18.19%. This is amongst the best in the industry. ACIW outperforms 83.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.54%, ACIW belongs to the top of the industry, outperforming 89.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACIW is below the industry average of 12.21%.
The 3 year average ROIC (8.48%) for ACIW is below the current ROIC(12.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 18.19% | ||
| ROIC | 12.54% |
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 16.12%. This is amongst the best in the industry. ACIW outperforms 80.57% of its industry peers.
ACIW's Profit Margin has improved in the last couple of years.
The Operating Margin of ACIW (22.00%) is better than 89.40% of its industry peers.
ACIW's Operating Margin has improved in the last couple of years.
ACIW has a Gross Margin of 51.34%. This is in the lower half of the industry: ACIW underperforms 66.78% 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 | 22% | ||
| PM (TTM) | 16.12% | ||
| GM | 51.34% |
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
ACIW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ACIW has less shares outstanding
The number of shares outstanding for ACIW has been reduced compared to 5 years ago.
The debt/assets ratio for ACIW is higher compared to a year ago.
2.2 Solvency
ACIW has an Altman-Z score of 3.53. This indicates that ACIW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.53, ACIW is in the better half of the industry, outperforming 61.84% of the companies in the same industry.
The Debt to FCF ratio of ACIW is 3.05, which is a good value as it means it would take ACIW, 3.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ACIW (3.05) is better than 63.96% of its industry peers.
ACIW has a Debt/Equity ratio of 0.55. This is a neutral value indicating ACIW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, ACIW is not doing good in the industry: 66.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.14
WACC10.96%
2.3 Liquidity
ACIW has a Current Ratio of 1.50. 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 Current ratio of 1.50 is in line compared to the rest of the industry. ACIW outperforms 47.00% of its industry peers.
ACIW has a Quick Ratio of 1.50. 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 Quick ratio, with a value of 1.50, ACIW is in line with its industry, outperforming 47.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
ACIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.55%, 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 13.11%.
ACIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.85% yearly.
EPS 1Y (TTM)89.55%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%885.71%
Revenue 1Y (TTM)13.11%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%24.85%
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 11.15% on average per year.
ACIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.07% yearly.
EPS Next Y12.62%
EPS Next 2Y21.78%
EPS Next 3Y11.15%
EPS Next 5YN/A
Revenue Next Year7.02%
Revenue Next 2Y4.34%
Revenue Next 3Y6.07%
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
The Price/Earnings ratio is 18.81, which indicates a rather expensive current valuation of ACIW.
Based on the Price/Earnings ratio, ACIW is valued cheaply inside the industry as 80.21% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ACIW to the average of the S&P500 Index (26.60), we can say ACIW is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.78, the valuation of ACIW can be described as correct.
Based on the Price/Forward Earnings ratio, ACIW is valued cheaper than 81.63% of the companies in the same industry.
ACIW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 16.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACIW indicates a rather cheap valuation: ACIW is cheaper than 90.46% of the companies listed in the same industry.
84.10% of the companies in the same industry are more expensive than ACIW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.11 | ||
| EV/EBITDA | 11.57 |
4.3 Compensation for Growth
ACIW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ACIW may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)0.68
EPS Next 2Y21.78%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
No dividends for ACIW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
47.79
-1.33 (-2.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.84%
Inst Owner Change0.92%
Ins Owners0.83%
Ins Owner Change2.12%
Market Cap5.03B
Analysts76.92
Price Target63.53 (32.94%)
Short Float %2.64%
Short Ratio3.49
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)129.34%
Min EPS beat(2)56.3%
Max EPS beat(2)202.37%
EPS beat(4)4
Avg EPS beat(4)165.12%
Min EPS beat(4)56.3%
Max EPS beat(4)323.46%
EPS beat(8)8
Avg EPS beat(8)121.91%
EPS beat(12)8
Avg EPS beat(12)72.46%
EPS beat(16)8
Avg EPS beat(16)49.83%
Revenue beat(2)1
Avg Revenue beat(2)2.27%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)6.21%
Revenue beat(4)3
Avg Revenue beat(4)4.77%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)9.83%
Revenue beat(8)6
Avg Revenue beat(8)3.33%
Revenue beat(12)8
Avg Revenue beat(12)2.18%
Revenue beat(16)10
Avg Revenue beat(16)1.55%
PT rev (1m)-4.17%
PT rev (3m)-2.98%
EPS NQ rev (1m)-17.24%
EPS NQ rev (3m)12.9%
EPS NY rev (1m)-3.85%
EPS NY rev (3m)12.77%
Revenue NQ rev (1m)-3.2%
Revenue NQ rev (3m)-3.52%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 16.78 | ||
| P/S | 3 | ||
| P/FCF | 18.11 | ||
| P/OCF | 16.02 | ||
| P/B | 3.39 | ||
| P/tB | 414.69 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)2.54
EY5.31%
EPS(NY)2.85
Fwd EY5.96%
FCF(TTM)2.64
FCFY5.52%
OCF(TTM)2.98
OCFY6.24%
SpS15.91
BVpS14.1
TBVpS0.12
PEG (NY)1.49
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 18.19% | ||
| ROCE | 15.34% | ||
| ROIC | 12.54% | ||
| ROICexc | 13.87% | ||
| ROICexgc | 43.07% | ||
| OM | 22% | ||
| PM (TTM) | 16.12% | ||
| GM | 51.34% | ||
| FCFM | 16.59% |
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-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 30.29% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 5.58 | ||
| Cash Conversion | 64.36% | ||
| Profit Quality | 102.89% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.53 |
F-Score9
WACC10.96%
ROIC/WACC1.14
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)89.55%
EPS 3Y21.14%
EPS 5Y27.49%
EPS Q2Q%885.71%
EPS Next Y12.62%
EPS Next 2Y21.78%
EPS Next 3Y11.15%
EPS Next 5YN/A
Revenue 1Y (TTM)13.11%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%24.85%
Revenue Next Year7.02%
Revenue Next 2Y4.34%
Revenue Next 3Y6.07%
Revenue Next 5YN/A
EBIT growth 1Y44.27%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year71.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y142.39%
FCF growth 3Y21.45%
FCF growth 5Y29.97%
OCF growth 1Y102.93%
OCF growth 3Y17.61%
OCF growth 5Y22.03%