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

Fundamentals

Good value with reasonable growth potential.

Risks

  • ACI Worldwide is covered by less than 3 analysts.

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


Market Performance


7 Day Return

2.8%

NasdaqGS:ACIW

-2.6%

US Software

-0.7%

US Market


1 Year Return

7.7%

NasdaqGS:ACIW

18.3%

US Software

-0.5%

US Market

ACIW underperformed the Software industry which returned 18.5% over the past year.

ACIW outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

ACIWIndustryMarket
7 Day2.8%-2.6%-0.7%
30 Day-13.4%-3.6%-3.0%
90 Day-6.7%2.0%0.9%
1 Year7.7%7.7%20.0%18.3%1.7%-0.5%
3 Year63.3%63.3%115.5%107.0%39.5%30.4%
5 Year53.9%53.9%161.0%142.1%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

ACI Worldwide's share price is below the future cash flow value, and at a moderate discount (> 20%).

ACI Worldwide's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

ACI Worldwide is good value 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

ACI Worldwide is poor value based on expected growth next year.


Price Based on Value of Assets

ACI Worldwide is good value based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is ACI Worldwide expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

39.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

ACI Worldwide's revenue is expected to grow by 20% yearly, however this is not considered high growth (20% yearly).

ACI Worldwide's earnings are expected to grow significantly at over 20% yearly.

ACI Worldwide's revenue growth is expected to exceed the United States of America market average.

ACI Worldwide's earnings growth is expected to exceed the United States of America market average.

ACI Worldwide's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if ACI Worldwide will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has ACI Worldwide performed over the past 5 years?

-18.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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's 1-year earnings growth exceeds its 5-year average (3142.5% vs -18.1%)

ACI Worldwide's earnings growth has exceeded the US Software industry average in the past year (3142.5% vs 45.5%).


Return on Equity

ACI Worldwide has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

ACI Worldwide used its assets less efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

ACI Worldwide has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ACI Worldwide's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

ACI Worldwide's level of debt (133.8%) 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 (151.5% vs 133.8% today).

Debt is not well covered by operating cash flow (12.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

10.1yrs

Average management tenure


CEO

Phil Heasley (69yo)

14.4yrs

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. Mr. Heasley has been the Chief Executive Officer and President  ...


CEO Compensation Analysis

Phil's remuneration is about average for companies of similar size in United States of America.

Phil's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

10.1yrs

Average Tenure

53yo

Average Age

The average tenure for the ACI Worldwide management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.1yrs

Average Tenure

64.5yo

Average Age

The tenure for the ACI Worldwide board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Phil Heasley (69yo)

    CEO, President & Director

    • Tenure: 14.4yrs
    • Compensation: US$5.96m
  • Mike Braatz

    Chief Marketing & Solutions Officer

    • Tenure: 0.6yrs
  • Craig Maki (53yo)

    Executive VP

    • Tenure: 13.2yrs
    • Compensation: US$1.26m
  • Dennis Byrnes (56yo)

    Chief Administrative Officer

    • Tenure: 10.6yrs
    • Compensation: US$1.85m
  • Dan Frate (58yo)

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

    • Tenure: 0.0yrs
    • Compensation: US$1.90m
  • Scott Behrens (47yo)

    Senior EVP

    • Tenure: 9.7yrs
    • Compensation: US$2.17m
  • David Kuhl

    Executive VP & Chief Human Resources Officer

    • Tenure: 0.0yrs
  • Carolyn Homberger (38yo)

    Senior EVP & Group President of ACI Global Sales

    • Tenure: 0.0yrs
    • Compensation: US$1.87m
  • John Kraft

    VP,Investor Relations & Strategic Analysis

    • Tenure: 0.0yrs
  • Craig Saks (48yo)

    Senior EVP & COO

    • Tenure: 2.6yrs
    • Compensation: US$2.17m

Board Members

  • Jim Hale (67yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: US$325.50k
  • Phil Heasley (69yo)

    CEO, President & Director

    • Tenure: 14.4yrs
    • Compensation: US$5.96m
  • Charlie Peters (68yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$334.00k
  • Pam Patsley (62yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$284.00k
  • David Poe (71yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$410.00k
  • Adalio Sanchez (59yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$325.00k
  • Tom Warsop (53yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$317.50k
  • Jan Estep (62yo)

    Director

    • Tenure: 3.8yrs
    • 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$3.430b
  • Shares outstanding: 116.71m
  • 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 Analysis2019/08/19 00:02
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.