ACI Worldwide (ACIW): Assessing Valuation After New Payment Infrastructure and Speedpay Deal Wins

ACI Worldwide (ACIW) just landed two fresh deal wins, with BanKo in the Philippines upgrading its core payments infrastructure and LLP Exotic Auto Finance adopting ACI Speedpay to streamline luxury auto finance payments and digital wallet experiences.

See our latest analysis for ACI Worldwide.

These wins come as ACI Worldwide’s share price sits around $48.20, with recent strength reflected in a positive 1 month and 1 week share price return. Its year to date performance remains weaker, while a robust 3 year total shareholder return suggests the longer term momentum story is still very much alive.

If these payment deals have you thinking about where else growth and execution might surprise, it could be worth exploring fast growing stocks with high insider ownership as potential next candidates for your watchlist.

Yet with shares still trading below analyst targets despite solid deal momentum and steady earnings growth, investors now face a key question: Is ACI Worldwide undervalued, or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 25.4% Undervalued

Compared with ACI Worldwide’s last close at $48.20, the most popular narrative points to a meaningfully higher fair value based on long range earnings power.

Strong momentum in new ARR bookings (up 71% in the first half) and a record $7 billion+ 60 month backlog indicate growing customer demand for ACI's secure, modern payment solutions supporting sustainable high single digit (or potentially higher) revenue growth outlooks.

Read the complete narrative.

Curious how that backlog, margin path, and future earnings multiple come together to justify a richer price tag? The narrative’s math might surprise you.

Result: Fair Value of $64.60 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensifying competition and ongoing heavy investment needs could pressure ACI’s margins and growth trajectory, which may challenge the upbeat undervaluation thesis.

Find out about the key risks to this ACI Worldwide narrative.

Build Your Own ACI Worldwide Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way

A great starting point for your ACI Worldwide research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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