NasdaqGS:ACIW

Stock Analysis Report

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Executive Summary

ACI Worldwide, Inc. develops, markets, installs, and supports a range of software products and solutions for facilitating electronic payments to banks, financial intermediaries, merchants, and billers worldwide. More Details


Snowflake Analysis

Mediocre balance sheet 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ACIW's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

14.4%

ACIW

0.6%

US Software

0.9%

US Market


1 Year Return

5.2%

ACIW

46.4%

US Software

22.1%

US Market

Return vs Industry: ACIW underperformed the US Software industry which returned 45.9% over the past year.

Return vs Market: ACIW underperformed the US Market which returned 22.2% over the past year.


Shareholder returns

ACIWIndustryMarket
7 Day14.4%0.6%0.9%
30 Day26.5%8.3%10.2%
90 Day30.4%5.5%9.7%
1 Year5.2%5.2%47.3%46.4%24.8%22.1%
3 Year68.8%68.8%143.6%135.8%48.6%38.7%
5 Year71.2%71.2%238.9%220.4%99.6%77.6%

Long-Term 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?

72.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ACIW ($37.94) is trading above our estimate of fair value ($34.28)

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


Price To Earnings Ratio

PE vs Industry: ACIW is poor value based on its PE Ratio (72.2x) compared to the US Software industry average (54.9x).

PE vs Market: ACIW is poor value based on its PE Ratio (72.2x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: ACIW is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ACIW is good value based on its PB Ratio (3.9x) compared to the US Software industry average (8x).


Next Steps

Future Growth

How is ACI Worldwide forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

40.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACIW's forecast earnings growth (40.3% per year) is above the savings rate (2.2%).

Earnings vs Market: ACIW's earnings (40.3% per year) are forecast to grow faster than the US market (21.9% per year).

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

Revenue vs Market: ACIW's revenue (5.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ACIW's revenue (5.2% 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?

-13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACIW has a large one-off loss of $25.2M impacting its September 30 2020 financial results.

Growing Profit Margin: ACIW's current net profit margins (4.7%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: ACIW's earnings have declined by 13.2% per year over the past 5 years.

Accelerating Growth: ACIW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACIW had negative earnings growth (-38.3%) over the past year, making it difficult to compare to the Software industry average (8%).


Return on Equity

High ROE: ACIW's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is ACI Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: ACIW's short term assets ($870.3M) exceed its short term liabilities ($590.2M).

Long Term Liabilities: ACIW's short term assets ($870.3M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: ACIW's debt to equity ratio (114.4%) is considered high.

Reducing Debt: ACIW's debt to equity ratio has reduced from 135.7% to 114.4% over the past 5 years.

Debt Coverage: ACIW's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: ACIW's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Odilon Almeida (59 yo)

0.75

Tenure

Mr. Odilon Almeida serves as President, Chief Executive Officer and Director of ACI Worldwide, Inc. since March 9, 2020. He served as Senior Advisor of Western Union Company since June 30, 2019 until Septe...


Leadership Team

NamePositionTenureCompensationOwnership
Scott Behrens
Executive VP11yrsUS$2.64m0.25%
$ 11.1m
Jeremy Miles Wilmot
Executive VP & Group President of ACI On Premiseno dataUS$1.97m0.029%
$ 1.3m
Craig Saks
Chief Strategy & Transformation Officer0.92yrUS$3.56m0%
$ 0
Evanthia Aretakis
Group President of Billers & Merchants and ACI On-Demand P&L4.17yrsUS$2.05m0.030%
$ 1.3m
Odilon Almeida
President0.75yrno data0.026%
$ 1.2m
John Kraft
VP of Investor Relations & Strategic Analysisno datano datano data
Dennis Byrnes
Executive VP & General Counsel17.5yrsUS$1.85m0.28%
$ 12.3m
Dan Ring
Vice President of Public Relationsno datano datano data
Anthony Dinkins
Chief Human Resources Officer0.25yrno datano data
Carolyn Homberger
Executive VP & Chief Risk Officerno dataUS$1.87m0.095%
$ 4.2m
Hannes van Rensburg
Senior Vice President of Business Development4.67yrsno datano data
Michael Braatz
Executive VP & Chief Product Officer2.42yrsno data0.034%
$ 1.5m

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: ACIW's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Odilon Almeida
President0.75yrno data0.026%
$ 1.2m
James Hale
Independent Director5.33yrsUS$324.99k0.050%
$ 2.2m
Charles Peters
Independent Director5.5yrsUS$333.99k0.051%
$ 2.3m
Pamela Patsley
Independent Director2.5yrsUS$317.99k0.022%
$ 991.4k
David Poe
Independent Chairman of the Board4.58yrsUS$409.99k0.063%
$ 2.8m
Charles Bobrinskoy
Independent Director0.17yrno datano data
Didier Lamouche
Independent Director0.17yrno datano data
Adalio Sanchez
Independent Director5.5yrsUS$332.99k0.054%
$ 2.4m
Thomas Warsop
Independent Director5.5yrsUS$316.99k0.051%
$ 2.3m
Janet Estep
Independent Director5.08yrsUS$324.99k0.047%
$ 2.1m

4.8yrs

Average Tenure

62yo

Average Age

Experienced Board: ACIW's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ACIW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$4.430b
  • Shares outstanding: 116.76m
  • 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. develops, markets, installs, and supports a range of software products and solutions for facilitating electronic payments to banks, financial intermediaries, merchants, and billers worl...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 00:16
End of Day Share Price2020/12/03 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.