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ACI Worldwide

Nasdaq:ACIW
Snowflake Description

Adequate balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACIW
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Software
Company description

ACI Worldwide, Inc. provides software products and services for facilitating electronic payments to banks, financial intermediaries, merchants, and corporates worldwide. The last earnings update was 38 days ago. More info.


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ACIW Share Price and Events
7 Day Returns
0.2%
NasdaqGS:ACIW
0.1%
US Software
0.5%
US Market
1 Year Returns
24%
NasdaqGS:ACIW
21.2%
US Software
0.8%
US Market
ACIW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ACI Worldwide (ACIW) 0.2% 3.2% -2.9% 24% 57.9% 72.9%
US Software 0.1% 0.5% 6.1% 21.2% 122.6% 150.3%
US Market 0.5% 0.2% 1.1% 0.8% 37.4% 37.5%
1 Year Return vs Industry and Market
  • ACIW outperformed the Software industry which returned 21.2% over the past year.
  • ACIW outperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
ACIW
Industry
5yr Volatility vs Market
Related Companies

ACIW Value

 Is ACI Worldwide undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ACI Worldwide to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ACI Worldwide.

NasdaqGS:ACIW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ACIW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.136 (1 + (1- 21%) (20.72%))
1.216
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.216 * 5.96%)
9.98%

Discounted Cash Flow Calculation for NasdaqGS:ACIW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ACI Worldwide is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ACIW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.98%)
2019 214.47 Analyst x2 195.01
2020 222.11 Analyst x2 183.64
2021 267.10 Analyst x1 200.81
2022 292.10 Analyst x1 199.68
2023 295.30 Analyst x1 183.56
2024 299.97 Est @ 1.58% 169.54
2025 305.75 Est @ 1.93% 157.13
2026 312.38 Est @ 2.17% 145.98
2027 319.68 Est @ 2.34% 135.84
2028 327.52 Est @ 2.45% 126.55
Present value of next 10 years cash flows $1,697.74
NasdaqGS:ACIW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $327.52 × (1 + 2.73%) ÷ (9.98% – 2.73%)
$4,643.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,643.21 ÷ (1 + 9.98%)10
$1,794.01
NasdaqGS:ACIW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,697.74 + $1,794.01
$3,491.74
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,491.74 / 110.56
$31.58
NasdaqGS:ACIW Discount to Share Price
Calculation Result
Value per share (USD) From above. $31.58
Current discount Discount to share price of $32.41
= -1 x ($32.41 - $31.58) / $31.58
-2.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of ACI Worldwide is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ACI Worldwide's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ACI Worldwide's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ACIW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.54
NasdaqGS:ACIW Share Price ** NasdaqGS (2019-06-14) in USD $32.41
United States of America Software Industry PE Ratio Median Figure of 81 Publicly-Listed Software Companies 50.61x
United States of America Market PE Ratio Median Figure of 3,091 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ACI Worldwide.

NasdaqGS:ACIW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ACIW Share Price ÷ EPS (both in USD)

= 32.41 ÷ 0.54

60.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ACI Worldwide is overvalued based on earnings compared to the US Software industry average.
  • ACI Worldwide is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does ACI Worldwide's expected growth come at a high price?
Raw Data
NasdaqGS:ACIW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 60.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
44%per year
United States of America Software Industry PEG Ratio Median Figure of 67 Publicly-Listed Software Companies 3.02x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:ACIW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 60.35x ÷ 44%

1.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ACI Worldwide is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ACI Worldwide's assets?
Raw Data
NasdaqGS:ACIW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $8.86
NasdaqGS:ACIW Share Price * NasdaqGS (2019-06-14) in USD $32.41
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.75x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:ACIW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ACIW Share Price ÷ Book Value per Share (both in USD)

= 32.41 ÷ 8.86

3.66x

* Primary Listing of ACI Worldwide.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ACI Worldwide is good value based on assets compared to the US Software industry average.
X
Value checks
We assess ACI Worldwide's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. ACI Worldwide has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ACIW Future Performance

 How is ACI Worldwide expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
44%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ACI Worldwide expected to grow at an attractive rate?
  • ACI Worldwide's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • ACI Worldwide's earnings growth is expected to exceed the United States of America market average.
  • ACI Worldwide's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ACIW Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ACIW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 44%
NasdaqGS:ACIW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 7.7%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 17.6%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ACIW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ACIW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,663 1
2022-12-31 1,592 1
2021-12-31 1,526 1
2020-12-31 1,496 271 136 3
2019-12-31 1,319 234 92 3
NasdaqGS:ACIW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,006 181 62
2018-12-31 1,010 184 69
2018-09-30 1,016 162 14
2018-06-30 996 118 3
2018-03-31 1,002 106 -13
2017-12-31 1,024 146 5
2017-09-30 1,041 120 39
2017-06-30 1,032 141 25
2017-03-31 1,011 147 39
2016-12-31 1,006 100 130
2016-09-30 972 129 107
2016-06-30 993 196 131

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ACI Worldwide's earnings are expected to grow significantly at over 20% yearly.
  • ACI Worldwide's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ACIW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from ACI Worldwide Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ACIW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.75 1.75 1.75 1.00
2022-12-31 1.54 1.54 1.54 1.00
2021-12-31 1.34 1.34 1.34 1.00
2020-12-31 1.13 1.14 1.12 3.00
2019-12-31 0.78 0.90 0.65 3.00
NasdaqGS:ACIW Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.54
2018-12-31 0.59
2018-09-30 0.12
2018-06-30 0.02
2018-03-31 -0.11
2017-12-31 0.04
2017-09-30 0.33
2017-06-30 0.22
2017-03-31 0.33
2016-12-31 1.10
2016-09-30 0.90
2016-06-30 1.11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if ACI Worldwide will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess ACI Worldwide's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ACI Worldwide has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ACIW Past Performance

  How has ACI Worldwide performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ACI Worldwide's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ACI Worldwide's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • ACI Worldwide has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • ACI Worldwide has become profitable in the last year making it difficult to compare the US Software industry average.
Earnings and Revenue History
ACI Worldwide's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ACI Worldwide Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ACIW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,006.33 62.39 221.01 143.03
2018-12-31 1,009.78 68.92 225.30 143.63
2018-09-30 1,016.23 14.40 227.28 141.39
2018-06-30 996.44 2.55 220.03 139.32
2018-03-31 1,002.04 -12.69 212.67 136.43
2017-12-31 1,024.19 5.14 211.77 136.92
2017-09-30 1,040.53 38.66 210.84 143.85
2017-06-30 1,031.77 25.45 221.57 152.13
2017-03-31 1,011.10 38.78 230.24 163.58
2016-12-31 1,005.70 129.54 226.70 169.90
2016-09-30 971.61 106.61 241.00 165.52
2016-06-30 993.33 131.22 228.47 159.43
2016-03-31 1,039.23 174.74 221.46 152.44
2015-12-31 1,045.98 85.44 214.63 145.92
2015-09-30 1,027.56 88.04 183.85 144.19
2015-06-30 1,038.51 88.99 184.32 144.39
2015-03-31 1,027.49 73.17 185.40 143.84
2014-12-31 1,016.15 67.56 195.71 144.21
2014-09-30 1,009.09 71.59 200.80 146.03
2014-06-30 973.38 69.62 191.55 143.35
2014-03-31 924.40 60.26 183.95 142.86
2013-12-31 864.93 63.87 181.93 142.56
2013-09-30 805.86 63.14 173.20 142.77
2013-06-30 746.98 55.03 173.72 143.34
2013-03-31 690.95 48.50 173.95 139.98
2012-12-31 666.58 48.85 164.30 133.76
2012-09-30 577.52 23.07 161.27 120.95
2012-06-30 534.61 27.96 156.27 109.22

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ACI Worldwide has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ACI Worldwide used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • ACI Worldwide's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ACI Worldwide's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ACI Worldwide has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ACIW Health

 How is ACI Worldwide's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ACI Worldwide's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ACI Worldwide is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ACI Worldwide's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of ACI Worldwide's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ACI Worldwide Company Filings, last reported 2 months ago.

NasdaqGS:ACIW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,032.58 742.59 176.17
2018-12-31 1,048.23 682.21 148.50
2018-09-30 962.94 687.80 76.34
2018-06-30 940.72 679.89 59.03
2018-03-31 979.02 682.31 74.28
2017-12-31 764.60 687.99 69.71
2017-09-30 771.31 694.26 67.93
2017-06-30 757.90 698.11 95.36
2017-03-31 770.27 702.47 99.74
2016-12-31 754.92 754.83 75.75
2016-09-30 694.76 752.04 50.91
2016-06-30 695.64 735.10 52.46
2016-03-31 704.17 772.23 94.37
2015-12-31 654.40 948.38 102.24
2015-09-30 598.90 811.27 80.86
2015-06-30 598.56 835.57 50.40
2015-03-31 577.22 860.80 68.46
2014-12-31 581.41 905.58 77.30
2014-09-30 520.83 953.23 60.07
2014-06-30 502.67 759.76 54.98
2014-03-31 478.60 785.12 58.94
2013-12-31 544.79 771.09 95.06
2013-09-30 476.70 764.25 166.51
2013-06-30 508.42 661.13 107.74
2013-03-31 525.73 670.50 112.48
2012-12-31 534.36 379.47 76.33
2012-09-30 477.23 396.83 87.68
2012-06-30 495.59 375.95 149.62
  • ACI Worldwide's level of debt (65.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (163.9% vs 65.6% today).
  • Debt is well covered by operating cash flow (26.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
X
Financial health checks
We assess ACI Worldwide's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ACI Worldwide has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ACIW Dividends

 What is ACI Worldwide's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from ACI Worldwide dividends.
If you bought $2,000 of ACI Worldwide shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate ACI Worldwide's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate ACI Worldwide's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ACIW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ACIW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as ACI Worldwide has not reported any payouts.
  • Unable to verify if ACI Worldwide's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of ACI Worldwide's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as ACI Worldwide has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess ACI Worldwide's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ACI Worldwide afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ACI Worldwide has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ACIW Management

 What is the CEO of ACI Worldwide's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Phil Heasley
COMPENSATION $5,956,791
AGE 68
TENURE AS CEO 14.3 years
CEO Bio

Mr. Philip George Heasley, also known as Phil, has been the Chief Executive Officer and President of ACI Worldwide, Inc. since March 8, 2005. Mr. Heasley has been the Chief Executive Officer and President of Transaction Systems Architects, Inc. since May 1, 2005. Mr. Heasley serves as a Member of the Executive Board at MidOcean Partners. He served as the Chief Executive Officer and Chairman of Paypower LLC., from October 2003 to March 2005. Mr. Heasley served as an Executive Vice President at Banc One Corporation from January 2, 2001 to July 16, 2003. He served as the Chairman and Chief Executive Officer of First USA Bank, from October 2000 to November 2003. He has more than 30 years in payment systems and financial services. Mr. Heasley spent 13 years in executive positions at U.S. BanCorp. from 1987 to 2000 and served as the President and Chief Operating Officer from July 21, 1999 to November 2000. He served as an Executive Vice President of Bank One Corporation from January 2, 2001 to July 16, 2003. Mr. Heasley served as an Executive Vice President of U.S. Bancorp. Mr. Heasley served as the President of U.S. Bancorp’s Consumer Products Division from September 1993 to July 1999. He served for 13 years at Citicorp, including three years as President and Chief Operating Officer at Diners Club Inc. Mr. Heasley served as the Chairman of ACI Worldwide, Inc. since June 8, 2015 until May 10, 2016. Mr. Heasley served as the Chairman of Official Payments Holdings, Inc. since April 2010 and served as its Lead Independent Director since February 2010. He served as the Chairman of the Board of VISA USA, from 1996 to November 2003. He serves as a Vice Chairman at First Bank System Inc. Mr. Heasley served as a Vice Chairman of U.S. BanCorp. from 1994 to July 1999. He serves on the National Infrastructure Advisory Council for the President. He has been a Director of ACI Worldwide Inc., since March 8, 2005. Mr. Heasley serves as a Director of The Ohio Casualty Insurance Company and Public Radio International, Inc. Mr. Heasley served as a Director of SAFG Retirement Services, Inc. He served as a Director of Visa International from 1996 to November 2003. He served as a Director of Kintera Inc. since September 2003. He served as a Member of the Board of Directors of Official Payments Holdings, Inc. since August 6, 2008. He served as a Director of Black Knight InfoServ, LLC from March 15, 2009 to January 2, 2014 and Chicago Title Corporation since 1998. He served as a Director of FNF at Fidelity National Information Services, Inc. Mr. Heasley served as a Director of Fair Isaac Corporation from November 2000 to April 28, 2005; Ohio Casualty Corporation from 2002 to August 24, 2007; The Schwan Food Company Inc., AIG Sun America, Minnesota Seed Capital, Cray Research Inc. since 1994; Fidelity National Title Group (now known as Fidelity National Financial, Inc.) from 2000 to March 15, 2009; and First USA, Inc. He received an M.B.A. from Bernard Baruch Graduate School of Business and a B.A. Degree from Marist College, both in New York.

CEO Compensation
  • Phil's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Phil's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the ACI Worldwide management team in years:

10
Average Tenure
52
Average Age
  • The average tenure for the ACI Worldwide management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Phil Heasley

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
68
TENURE
14.3 yrs

Scott Behrens

TITLE
Senior EVP
COMPENSATION
$2M
AGE
46
TENURE
9.5 yrs

Craig Saks

TITLE
Senior EVP & COO
COMPENSATION
$2M
AGE
47
TENURE
2.4 yrs

Dennis Byrnes

TITLE
Chief Administrative Officer
COMPENSATION
$2M
AGE
55
TENURE
10.4 yrs

Craig Maki

TITLE
Executive VP
COMPENSATION
$1M
AGE
52
TENURE
13 yrs

Dan Frate

TITLE
Senior Executive Vice President and Group President of ACI On Demand P&L
COMPENSATION
$4M
AGE
57

Carolyn Homberger

TITLE
Senior EVP & Group President of ACI Global Sales
COMPENSATION
$4M
AGE
37

John Kraft

TITLE
VP,Investor Relations & Strategic Analysis

Mike Braatz

TITLE
Chief Marketing & Solutions Officer
TENURE
0.4 yrs

David Kuhl

TITLE
Executive VP & Chief Human Resources Officer
Board of Directors Tenure

Average tenure and age of the ACI Worldwide board of directors in years:

3.9
Average Tenure
63.5
Average Age
  • The tenure for the ACI Worldwide board of directors is about average.
Board of Directors

David Poe

TITLE
Chairman of the Board
COMPENSATION
$410K
AGE
70
TENURE
3.1 yrs

Phil Heasley

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
68
TENURE
14.3 yrs

Charlie Peters

TITLE
Director
COMPENSATION
$334K
AGE
67
TENURE
4 yrs

Jim Hale

TITLE
Director
COMPENSATION
$325K
AGE
66
TENURE
3.8 yrs

Jan Estep

TITLE
Director
COMPENSATION
$325K
AGE
61
TENURE
3.6 yrs

Adalio Sanchez

TITLE
Director
COMPENSATION
$325K
AGE
58
TENURE
4 yrs

Tom Warsop

TITLE
Director
COMPENSATION
$317K
AGE
52
TENURE
4 yrs

Pam Patsley

TITLE
Independent Director
COMPENSATION
$284K
AGE
61
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Aug 18 Sell Adalio Sanchez Individual 17. Aug 18 17. Aug 18 -8,000 $26.95 $-215,622
X
Management checks
We assess ACI Worldwide's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ACI Worldwide has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ACIW News

Simply Wall St News

What You Should Know About ACI Worldwide, Inc.'s (NASDAQ:ACIW) Financial Strength

ACIW’s Debt (And Cash Flows) ACIW has built up its total debt levels in the last twelve months, from US$682m to US$743m , which includes long-term debt. … Moreover, ACIW has generated US$181m in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 24%, indicating that ACIW’s operating cash is sufficient to cover its debt. … Next Steps: ACIW’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Does ACI Worldwide, Inc. (NASDAQ:ACIW) Have A High Beta?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … To use beta as an investor, you must first understand that the overall market has a beta of one. … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Is ACI Worldwide, Inc.'s (NASDAQ:ACIW) CEO Pay Fair?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Phil Heasley's Compensation Compare With Similar Sized Companies. … has a market cap of US$3.9b, and is paying total annual CEO compensation of US$6.1m.

Simply Wall St -

How Much Are ACI Worldwide, Inc. (NASDAQ:ACIW) Insiders Taking Off The Table?

So shareholders might well want to know whether insiders have been buying or selling shares in ACI Worldwide, Inc. … ACI Worldwide Insider Transactions Over The Last Year. … However, while insider selling is sometimes discouraging, it's only a weak signal

Simply Wall St -

What Does ACI Worldwide, Inc.'s (NASDAQ:ACIW) Share Price Indicate?

received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price.

Simply Wall St -

ACI Worldwide, Inc. (NASDAQ:ACIW): Time For A Financial Health Check

This article will examine ACIW’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Don’t forget that this is a general and concentrated examination of ACI Worldwide’s financial health, so you should conduct further analysis. … Does ACIW Produce Much Cash Relative To Its Debt?

Simply Wall St -

Can You Imagine How ACI Worldwide's Shareholders Feel About The 73% Share Price Increase?

(NASDAQ:ACIW) shareholders have seen the share price rise 73% over three years, well in excess of the market return (54%). … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During the three years of share price growth, ACI Worldwide actually saw its earnings per share (EPS) drop 41% per year.

Simply Wall St -

Should We Be Cautious About ACI Worldwide, Inc.'s (NASDAQ:ACIW) ROE Of 1.5%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows ACI Worldwide has a return on equity of 1.5% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.015 in profit.

Simply Wall St -

Does ACI Worldwide, Inc.'s (NASDAQ:ACIW) CEO Salary Reflect Performance?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Phil Heasley's Compensation Compare With Similar Sized Companies. … is worth US$3.1b, and total annual CEO compensation is US$6.1m.

Simply Wall St -

Why We’re Not Keen On ACI Worldwide, Inc.’s (NASDAQ:ACIW) 6.9% Return On Capital

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

ACIW Company Info

Description

ACI Worldwide, Inc. provides software products and services for facilitating electronic payments to banks, financial intermediaries, merchants, and corporates worldwide. It offers UP Retail Payments solution that enables banks to accept, authorize, route, and secure payment transactions; and ACI Card and Merchant Management solutions, including credit, debit, smart card, and prepaid card issuance and management, as well as merchant account management and settlement. The company also provides UP Immediate Payments solution, which provides connectivity to country-level real-time payment schemes and create various products; and UP Real-Time Payments solution that allows banks to address RTGS, SWIFT messaging, ACH, and real-time payments. In addition, it offers Postilion; ACI PAY.ON Payments Gateway; ACI ReD Shield, a real-time fraud prevention solution, as well as UP eCommerce Payments solution; and UP Payments Risk Management solution and ACI Universal Online Banker platform. Further, the company provides UP Bill Payment solutions, which enable customers to present bills and collect payments from consumers electronically through a single and integrated platform that controls bill payments operation. Additionally, it offers bill presentment and payment collection services to consumer finance, insurance, healthcare, higher education, tax, and utility sectors; and implementation services, including installations, product configurations, and custom software modifications; business and technical consultancy, and on-site support services, as well as distributes or acts as a sales agent for software developed by third parties. The company markets its products and services under the ACI Worldwide, ACI Universal Payments, and ACI UP brand names. The company was formerly known as Transaction Systems Architects, Inc. and changed its name to ACI Worldwide, Inc. in July 2007. ACI Worldwide, Inc. was founded in 1975 and is headquartered in Naples, Florida.

Details
Name: ACI Worldwide, Inc.
ACIW
Exchange: NasdaqGS
Founded: 1975
$3,583,352,955
110,563,189
Website: http://www.aciworldwide.com
Address: ACI Worldwide, Inc.
3520 Kraft Road,
Suite 300,
Naples,
Florida, 34105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ACIW Common Stock Nasdaq Global Select US USD 24. Feb 1995
DB TSA Common Stock Deutsche Boerse AG DE EUR 24. Feb 1995
Number of employees
Current staff
Staff numbers
3,807
ACI Worldwide employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 00:06
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.