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 282 industry peers in the Software industry. ACIW scores excellent on profitability, but there are some minor concerns on its financial health. ACIW may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, ACIW could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
ACIW had positive earnings in the past year.
In the past year ACIW had a positive cash flow from operations.
In the past 5 years ACIW has always been profitable.
Each year in the past 5 years ACIW had a positive operating cash flow.
1.2 Ratios
ACIW has a better Return On Assets (8.42%) than 83.33% of its industry peers.
ACIW's Return On Equity of 18.19% is amongst the best of the industry. ACIW outperforms 85.46% of its industry peers.
ACIW's Return On Invested Capital of 12.54% is amongst the best of the industry. ACIW outperforms 90.07% of its industry peers.
ACIW had an Average Return On Invested Capital over the past 3 years of 8.48%. This is below the industry average of 12.17%.
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
With an excellent Profit Margin value of 16.12%, ACIW belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
In the last couple of years the Profit Margin of ACIW has grown nicely.
ACIW has a Operating Margin of 22.00%. This is amongst the best in the industry. ACIW outperforms 89.72% of its industry peers.
In the last couple of years the Operating Margin of ACIW has grown nicely.
ACIW has a Gross Margin of 51.34%. This is in the lower half of the industry: ACIW underperforms 66.67% of its industry peers.
ACIW's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACIW is creating some value.
The number of shares outstanding for ACIW has been reduced 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 is higher compared to a year ago.
2.2 Solvency
ACIW has an Altman-Z score of 3.44. This indicates that ACIW is financially healthy and has little risk of bankruptcy at the moment.
ACIW's Altman-Z score of 3.44 is fine compared to the rest of the industry. ACIW outperforms 60.28% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.05, ACIW is doing good in the industry, outperforming 64.54% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that 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: 65.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.16
WACC10.83%
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 has a Current ratio of 1.50. This is comparable to the rest of the industry: ACIW outperforms 48.23% 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.
ACIW has a Quick ratio of 1.50. This is comparable to the rest of the industry: ACIW outperforms 48.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.55% over the past year.
Measured over the past years, ACIW shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.49% on average per year.
ACIW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.11%.
Measured over the past years, ACIW shows a small growth in Revenue. The Revenue has been growing by 4.85% on average per year.
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
ACIW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.22% yearly.
ACIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.90% yearly.
EPS Next Y24.31%
EPS Next 2Y15.01%
EPS Next 3Y11.22%
EPS Next 5YN/A
Revenue Next Year7.08%
Revenue Next 2Y6.93%
Revenue Next 3Y5.9%
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
Based on the Price/Earnings ratio of 17.85, the valuation of ACIW can be described as rather expensive.
83.33% of the companies in the same industry are more expensive than ACIW, based on the Price/Earnings ratio.
ACIW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.85, the valuation of ACIW can be described as rather expensive.
82.27% of the companies in the same industry are more expensive than ACIW, based on the Price/Forward Earnings ratio.
ACIW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 17.85 |
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 90.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACIW is valued cheaper than 86.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.14 | ||
| EV/EBITDA | 11.02 |
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.
PEG (NY)0.73
PEG (5Y)0.65
EPS Next 2Y15.01%
EPS Next 3Y11.22%
5. Dividend
5.1 Amount
ACIW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
45.34
-0.36 (-0.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.71%
Inst Owner Change-0.51%
Ins Owners0.93%
Ins Owner Change1.84%
Market Cap4.76B
Analysts78.46
Price Target63.19 (39.37%)
Short Float %2.62%
Short Ratio3.57
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)0%
PT rev (3m)-4.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-72.22%
EPS NY rev (1m)0%
EPS NY rev (3m)6.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 17.85 | ||
| P/S | 2.84 | ||
| P/FCF | 17.14 | ||
| P/OCF | 15.16 | ||
| P/B | 3.21 | ||
| P/tB | 392.42 | ||
| EV/EBITDA | 11.02 |
EPS(TTM)2.54
EY5.6%
EPS(NY)2.54
Fwd EY5.6%
FCF(TTM)2.65
FCFY5.84%
OCF(TTM)2.99
OCFY6.6%
SpS15.95
BVpS14.13
TBVpS0.12
PEG (NY)0.73
PEG (5Y)0.65
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 | 3.44 |
F-Score9
WACC10.83%
ROIC/WACC1.16
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 Y24.31%
EPS Next 2Y15.01%
EPS Next 3Y11.22%
EPS Next 5YN/A
Revenue 1Y (TTM)13.11%
Revenue growth 3Y5.17%
Revenue growth 5Y4.85%
Sales Q2Q%24.85%
Revenue Next Year7.08%
Revenue Next 2Y6.93%
Revenue Next 3Y5.9%
Revenue Next 5YN/A
EBIT growth 1Y44.27%
EBIT growth 3Y12.36%
EBIT growth 5Y16.75%
EBIT Next Year70.94%
EBIT Next 3Y24.59%
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%