ACI Worldwide, Inc. (ACIW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Doximity, Inc.

ACI Worldwide, Inc.

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Skillsoft Corp.

StoneCo Ltd.

C3.ai, Inc.

Why is ACI Worldwide, Inc. ?

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 313.51 MM
NET PROFIT(HY) At USD 71.07 MM has Grown at 179.35%
ROCE(HY) Highest at 19.09%

With ROCE of 16.94%, it has a very attractive valuation with a 3.15 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -19.02%, its profits have risen by 82.5% ; the PEG ratio of the company is 0.3

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -19.02% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ACI Worldwide, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ACI Worldwide, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

ACI Worldwide, Inc.

-17.99%

1.09

34.18%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.78%

EBIT Growth (5y)

13.36%

EBIT to Interest (avg)

3.96

Debt to EBITDA (avg)

2.48

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

0.66

Tax Ratio

18.14%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

10.99%

ROE (avg)

11.83%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.08

EV to EBIT

18.63

EV to EBITDA

14.05

EV to Capital Employed

3.15

EV to Sales

4.00

PEG Ratio

0.25

Dividend Yield

ROCE (Latest)

16.94%

ROE (Latest)

18.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 313.51 MM

NET PROFIT(HY)

At USD 71.07 MM has Grown at 179.35%

ROCE(HY)

Highest at 19.09%

CASH AND EQV(HY)

Highest at USD 419.75 MM

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 422.43

RAW MATERIAL COST(Y)

Grown by 7.31% (YoY

OPERATING PROFIT(Q)

Lowest at USD 61.37 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.29 %

PRE-TAX PROFIT(Q)

Lowest at USD 17.87 MM

NET PROFIT(Q)

Lowest at USD 12.2 MM

EPS(Q)

Lowest at USD 0.12

Here's what is working for ACI Worldwide, Inc.

Operating Cash Flow

Highest at USD 313.51 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 419.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for ACI Worldwide, Inc.

Pre-Tax Profit

At USD 17.87 MM has Fallen at -56.13%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 12.2 MM has Fallen at -60.88%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 422.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 61.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 15.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 17.87 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 12.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.12

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 7.31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales