NasdaqGS:ACIW

Stock Analysis Report

Executive Summary

ACI Worldwide, Inc. provides software products and services for facilitating electronic payments to banks, financial intermediaries, merchants, and corporates worldwide.

Rewards

PE ratio (42.8x) is below the Software industry average (44.9x)

Earnings are forecast to grow 20.65% per year

Earnings grew by 589.6% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results



Snowflake Analysis

Acceptable track record with moderate growth potential.


Similar Companies

Share Price & News

How has ACI Worldwide's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACIW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

ACIW

0.8%

US Software

0.6%

US Market


1 Year Return

32.7%

ACIW

33.7%

US Software

20.8%

US Market

Return vs Industry: ACIW matched the US Software industry which returned 33.7% over the past year.

Return vs Market: ACIW exceeded the US Market which returned 20.8% over the past year.


Shareholder returns

ACIWIndustryMarket
7 Day0.1%0.8%0.6%
30 Day8.5%1.6%2.5%
90 Day11.2%5.8%4.9%
1 Year32.7%32.7%35.7%33.7%23.5%20.8%
3 Year101.7%101.7%130.8%121.5%46.5%37.0%
5 Year82.1%82.1%171.6%152.3%64.6%46.5%

Price Volatility Vs. Market

How volatile is ACI Worldwide's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ACI Worldwide undervalued compared to its fair value and its price relative to the market?

42.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ACIW ($36.45) is trading above our estimate of fair value ($30.91)

Significantly Below Fair Value: ACIW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ACIW is good value based on its PE Ratio (42.8x) compared to the Software industry average (44.9x).

PE vs Market: ACIW is poor value based on its PE Ratio (42.8x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: ACIW is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ACIW is good value based on its PB Ratio (4x) compared to the US Software industry average (5.6x).


Next Steps

Future Growth

How is ACI Worldwide forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACIW's forecast earnings growth (20.6% per year) is above the savings rate (1.7%).

Earnings vs Market: ACIW's earnings (20.6% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ACIW's revenue (7.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: ACIW's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ACIW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ACI Worldwide performed over the past 5 years?

-15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACIW has a large one-off loss of $38.2M impacting its September 30 2019 financial results.

Growing Profit Margin: ACIW's current net profit margins (8.4%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: ACIW's earnings have declined by -15.1% per year over the past 5 years.

Accelerating Growth: ACIW's earnings growth over the past year (589.6%) exceeds its 5-year average (-15.1% per year).

Earnings vs Industry: ACIW earnings growth over the past year (589.6%) exceeded the Software industry 15.8%.


Return on Equity

High ROE: ACIW's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ACI Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: ACIW's short term assets ($1.0B) exceed its short term liabilities ($734.9M).

Long Term Liabilities: ACIW's short term assets ($1.0B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: ACIW's debt to equity ratio (134.4%) is considered high.

Reducing Debt: ACIW's debt to equity ratio has reduced from 182.7% to 134.4% over the past 5 years.

Debt Coverage: ACIW's debt is not well covered by operating cash flow (12.1%).

Interest Coverage: ACIW's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: ACIW has a low level of unsold assets or inventory.

Debt Coverage by Assets: ACIW's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ACIW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ACIW's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACIW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACIW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACIW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

10.5yrs

Average management tenure


CEO

Phil Heasley (69yo)

14.8yrs

Tenure

US$5,956,791

Compensation

Mr. Philip George Heasley, also known as Phil, has been the Chief Executive Officer and President of ACI Worldwide, Inc. since March 8, 2005 and ACI Worldwide Corp. Mr. Heasley has been the Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD5.96M) is about average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.5yrs

Average Tenure

53yo

Average Age

Experienced Management: ACIW's management team is seasoned and experienced (10.5 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: ACIW's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Phil Heasley (69yo)

    CEO, President & Director

    • Tenure: 14.8yrs
    • Compensation: US$5.96m
  • Mike Braatz

    Chief Marketing & Solutions Officer

    • Tenure: 0.9yrs
  • Craig Maki (53yo)

    Executive VP

    • Tenure: 11.9yrs
    • Compensation: US$1.26m
  • Dennis Byrnes (56yo)

    Chief Administrative Officer

    • Tenure: 10.9yrs
    • Compensation: US$1.85m
  • Dan Frate (58yo)

    Senior Executive Vice President and Group President of ACI On Demand P&L

    • Tenure: 0yrs
    • Compensation: US$1.90m
  • Scott Behrens (47yo)

    Senior EVP

    • Tenure: 10yrs
    • Compensation: US$2.17m
  • Carolyn Homberger (38yo)

    Executive VP & Chief Risk Officer

    • Tenure: 0yrs
    • Compensation: US$1.87m
  • John Kraft

    VP of Investor Relations & Strategic Analysis

    • Tenure: 0yrs
  • Craig Saks (48yo)

    Senior EVP & COO

    • Tenure: 2.9yrs
    • Compensation: US$2.17m
  • Dan Ring

    Vice President of Public Relations

    • Tenure: 0yrs

Board Members

  • Jim Hale (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$325.50k
  • Phil Heasley (69yo)

    CEO, President & Director

    • Tenure: 14.8yrs
    • Compensation: US$5.96m
  • Charlie Peters (68yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$334.00k
  • Pam Patsley (62yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$284.00k
  • David Poe (71yo)

    Independent Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: US$410.00k
  • Adalio Sanchez (59yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$325.00k
  • Tom Warsop (53yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$317.50k
  • Jan Estep (62yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$325.00k

Company Information

ACI Worldwide, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ACI Worldwide, Inc.
  • Ticker: ACIW
  • Exchange: NasdaqGS
  • Founded: 1975
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$4.214b
  • Shares outstanding: 115.60m
  • Website: https://www.aciworldwide.com

Number of Employees


Location

  • ACI Worldwide, Inc.
  • 3520 Kraft Road
  • Suite 300
  • Naples
  • Florida
  • 34105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACIWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1995
TSADB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1995

Biography

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 soluti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 00:30
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.