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.


Snowflake Analysis

Reasonable growth potential and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.5%

ACIW

-1.4%

US Software

2.4%

US Market


1 Year Return

-29.6%

ACIW

8.6%

US Software

-10.0%

US Market

Return vs Industry: ACIW underperformed the US Software industry which returned 7.1% over the past year.

Return vs Market: ACIW underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

ACIWIndustryMarket
7 Day7.5%-1.4%2.4%
30 Day-16.6%-7.7%-11.0%
90 Day-38.0%-7.8%-19.4%
1 Year-29.6%-29.6%9.8%8.6%-8.1%-10.0%
3 Year15.3%15.3%104.2%95.6%17.3%9.6%
5 Year11.2%11.2%169.6%150.6%36.1%21.1%

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?

0.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACIW ($23.45) is trading below our estimate of fair value ($23.95)

Significantly Below Fair Value: ACIW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ACIW is poor value based on its PE Ratio (40.6x) compared to the Software industry average (39x).

PE vs Market: ACIW is poor value based on its PE Ratio (40.6x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: ACIW is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ACIW is good value based on its PB Ratio (2.4x) compared to the US Software industry average (4x).


Next Steps

Future Growth

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

44.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACIW's forecast earnings growth (44.1% per year) is above the savings rate (1.7%).

Earnings vs Market: ACIW's earnings (44.1% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: ACIW's revenue (11.3% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: ACIW's revenue (11.3% 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 $22.2M impacting its December 31 2019 financial results.

Growing Profit Margin: ACIW's current net profit margins (5.3%) are lower than last year (6.8%).


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 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 (-2.7%) over the past year, making it difficult to compare to the Software industry average (18.4%).


Return on Equity

High ROE: ACIW's Return on Equity (5.9%) 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 ($920.4M) exceed its short term liabilities ($612.0M).

Long Term Liabilities: ACIW's short term assets ($920.4M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: ACIW's debt to equity ratio (123.1%) is considered high.

Reducing Debt: ACIW's debt to equity ratio has reduced from 155.7% to 123.1% over the past 5 years.

Debt Coverage: ACIW's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: ACIW's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is ACI Worldwide's 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 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

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

7.2yrs

Average management tenure


CEO

Odilon Almeida (58yo)

0.083

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 VP10.33yrsUS$2.17m0.24% $6.6m
Dennis Byrnes
Chief Administrative Officer11.25yrsUS$1.85m0.28% $7.8m
Carolyn Homberger
Executive VP & Chief Risk Officerno dataUS$1.87m0.096% $2.7m
Craig Saks
Chief Strategy & Transformation Officer0.25yrUS$2.17m0.060% $1.7m
Craig Maki
Executive VP12.25yrsUS$1.26m0.27% $7.6m
Odilon Almeida
President0.083yrno data0.026% $735.1k
John Kraft
VP of Investor Relations & Strategic Analysisno datano datano data
Dan Ring
Vice President of Public Relationsno datano datano data
Jeremy Miles Wilmot
Executive VPno datano data0.074% $2.1m
Hannes van Rensburg
Senior Vice President of Business Development4yrsno datano data

7.2yrs

Average Tenure

50yo

Average Age

Experienced Management: ACIW's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Odilon Almeida
President0.083yrno data0.026% $735.1k
James Hale
Independent Director4.67yrsUS$325.50k0.042% $1.2m
Charles Peters
Independent Director4.83yrsUS$334.00k0.044% $1.2m
Pamela Patsley
Independent Director1.83yrsUS$284.00k0.015% $417.6k
David Poe
Independent Chairman of the Board3.92yrsUS$410.00k0.055% $1.6m
Adalio Sanchez
Independent Director4.83yrsUS$325.00k0.043% $1.2m
Thomas Warsop
Independent Director4.83yrsUS$317.50k0.044% $1.2m
Janet Estep
Independent Director4.42yrsUS$325.00k0.040% $1.1m

4.5yrs

Average Tenure

62yo

Average Age

Experienced Board: ACIW's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ACIW insiders have bought more shares than they have sold 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$2.805b
  • Shares outstanding: 116.13m
  • 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
TSABRSE (Berne Stock Exchange)YesCommon StockCHCHFFeb 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 05:34
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.