ACI Worldwide, Inc.
ACI Worldwide, Inc. Fundamental Analysis
ACI Worldwide, Inc. (ACIW) shows moderate financial fundamentals with a PE ratio of 15.20, profit margin of 15.07%, and ROE of 18.05%. The company generates $1.7B in annual revenue with moderate year-over-year growth of 9.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ACIW's fundamental strength across five key dimensions:
Efficiency Score
WeakACIW struggles to generate sufficient returns from assets.
Valuation Score
ModerateACIW shows balanced valuation metrics.
Growth Score
ExcellentACIW delivers strong and consistent growth momentum.
Financial Health Score
ExcellentACIW maintains a strong and stable balance sheet.
Profitability Score
ExcellentACIW achieves industry-leading margins.
Key Financial Metrics
Is ACIW Expensive or Cheap?
P/E Ratio
ACIW trades at 15.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ACIW's PEG of 3.65 indicates potential overvaluation.
Price to Book
The market values ACI Worldwide, Inc. at 2.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.69 times EBITDA. This is generally considered low.
How Well Does ACIW Make Money?
Net Profit Margin
For every $100 in sales, ACI Worldwide, Inc. keeps $15.07 as profit after all expenses.
Operating Margin
Core operations generate 19.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.05 in profit for every $100 of shareholder equity.
ROA
ACI Worldwide, Inc. generates $8.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ACI Worldwide, Inc. produces operating cash flow of $327.04M, showing steady but balanced cash generation.
Free Cash Flow
ACI Worldwide, Inc. generates strong free cash flow of $300.27M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.91 in free cash annually.
FCF Yield
ACIW converts 7.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How ACIW Stacks Against Its Sector Peers
| Metric | ACIW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.20 | 34.79 | Better (Cheaper) |
| ROE | 18.05% | 1185.00% | Weak |
| Net Margin | 15.07% | -131296.00% (disorted) | Strong |
| Debt/Equity | 0.62 | 0.43 | Weak (High Leverage) |
| Current Ratio | 1.58 | 4.90 | Neutral |
| ROA | 8.25% | -325472.00% (disorted) | Weak |
ACIW outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ACI Worldwide, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.53%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
233.56%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
187.02%
Industry Style: Growth, Innovation, High Beta
High Growth