ACI Worldwide (ACIW) AI Stock Analysis

• Market Cap: $5.13B
• Dividend Yield: N/A
• Average Volume (3M): 880.06K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.13
• Revenue Growth: 13.11%
• EPS Growth: 91.21%
• Country: US
• Employees: 3,103
• Sector: Technology
• Sector Strength: 76
• Industry: Software - Infrastructure
• EPS (TTM): 0.55
• Shares Outstanding: 104,899,640
• 10 Day Avg. Volume: 1,087,840
• 30 Day Avg. Volume: 880,063
• PEG Ratio: -3.15
• Price to Book (P/B): 4.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.00
• Price Target Upside: 22.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

ACI Worldwide's stock receives a strong overall score driven by robust financial performance and positive earnings call insights, particularly from the Payment Software segment. Technical analysis shows mixed signals, suggesting potential for upward movement, while the valuation remains moderate. The positive outlook is tempered slightly by high debt levels and uncertainties introduced by the CFO's retirement.

Positive Factors

Revenue Growth

The company reported 25% year-over-year growth in total revenue, surpassing forecasts and consensus expectations.

Software License Fees

More than 100% year-over-year growth in non-recurring revenue was driven by high-margin Software License Fees increasing significantly.

Negative Factors

2Q Guidance

The 2Q guide was below expectations, with management leaving the FY25 guidance largely unchanged.

Future Guidance

Despite strong quarterly results, the shares pulled back, potentially due to investors expecting a larger revision to future guidance.

ACI Worldwide Business Overview & Revenue Model

Company Description

ACI Worldwide (ACIW) is a leading global provider of real-time electronic payment and banking solutions. The company operates within the financial technology sector, offering a comprehensive suite of software products and services that facilitate electronic payments for financial institutions, intermediaries, merchants, and corporations. ACI Worldwide's core offerings include payment processing services, fraud detection, and risk management solutions, enabling secure and seamless transactions across various channels and platforms worldwide.

How the Company Makes Money

ACI Worldwide generates revenue primarily through the sale of its software solutions and services that support electronic payments and banking operations. The company's revenue model includes software licensing fees, maintenance fees, and professional services. Key revenue streams are derived from its on-premise software installations, cloud-based solutions, and Software-as-a-Service (SaaS) offerings. ACI Worldwide also earns from transaction-based fees linked to the payment processing volume handled through its platforms. Significant partnerships with banks, financial institutions, and technology providers enhance its market reach and contribute to its earnings by integrating ACI's solutions into broader financial systems and networks.

ACI Worldwide Financial Statement Overview

Summary

ACI Worldwide exhibits strong financial performance, marked by significant revenue growth, healthy profit margins, and robust cash flow generation. The company maintains a stable balance sheet with manageable leverage, indicating financial stability. Potential challenges include asset growth, but overall, the financial outlook is positive, reflecting strong operational execution.

Income Statement

The income statement reveals strong revenue growth with a 9.8% increase from 2023 to 2024, indicating robust demand. Gross profit margin is healthy at 50.3%, and net profit margin has improved to 12.7%, showcasing enhanced profitability. EBIT margin is solid at 19.3%, reflecting efficient operations, while EBITDA margin is 18.1%, slightly lower but still favorable.

Balance Sheet

The balance sheet shows a stable equity position with an equity ratio of 47.1%, indicating a balanced capital structure. The debt-to-equity ratio stands at 0.67, suggesting manageable leverage. ROE is strong at 14.3%, reflecting good utilization of equity, but the decrease in total assets indicates potential challenges in asset growth.

Cash Flow

The cash flow statement demonstrates a remarkable free cash flow growth of 162.6%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 1.77 suggests efficient cash conversion. The free cash flow to net income ratio is 1.69, indicating robust cash profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.59B	1.45B	1.42B	1.37B	1.29B
	Gross Profit
802.50M	733.37M	725.83M	731.73M	671.86M
	EBIT
308.13M	223.01M	203.84M	209.90M	144.74M
	EBITDA
443.55M	360.11M	398.19M	364.03M	319.02M
	Net Income Common Stockholders
203.12M	121.51M	142.18M	127.79M	72.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
216.39M	164.24M	124.98M	122.06M	165.37M
	Total Assets
3.03B	3.44B	3.21B	3.16B	3.39B
	Total Debt
947.17M	1.08B	1.12B	1.11B	1.19B
	Net Debt
730.77M	912.19M	998.80M	987.03M	1.03B
	Total Liabilities
1.60B	2.12B	2.02B	1.91B	2.18B
	Stockholders Equity
1.42B	1.32B	1.19B	1.24B	1.21B
Cash Flow		Free Cash Flow
343.35M	130.74M	103.49M	175.10M	289.67M
	Operating Cash Flow
358.75M	168.52M	143.38M	220.47M	336.30M
	Investing Cash Flow
-45.05M	-37.78M	60.25M	-45.37M	-30.70M
	Financing Cash Flow
-288.20M	-111.55M	-171.06M	-256.88M	-261.57M

ACI Worldwide Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACIW, the sentiment is Negative. The current price of 48.87 is below the 20-day moving average (MA) of 51.45, below the 50-day MA of 52.28, and below the 200-day MA of 51.79, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 29.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACIW.

ACI Worldwide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNT	75 Outperform	$5.48B	15.10	35.88%	0.27%	-3.59%	-11.30%
ACIW	74 Outperform	$5.13B	19.26	19.69%	―	13.11%	91.21%
PATH	72 Outperform	$7.13B	―	-3.82%	―	9.30%	20.59%
CCCS	70 Neutral	$6.01B	642.25	0.46%	―	9.05%	―
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.76%
QTWO	59 Neutral	$5.67B	―	-3.95%	―	13.12%	75.24%
ALGM	56 Neutral	$5.07B	―	-7.09%	―	-28.33%	-129.75%

ACI Worldwide Corporate Events

ACI Worldwide Announces CFO Retirement Amid Strong Q1 Results

On May 8, 2025, ACI Worldwide announced the retirement of Scott Behrens, their Executive Vice President, Chief Financial Officer, and Chief Accounting Officer, with a successor yet to be determined. The company reported strong financial results for Q1 2025, with a 25% revenue increase and a net income of $59 million, compared to a net loss in Q1 2024. ACI Worldwide’s Payment Software segment saw a 42% revenue growth, and the company raised its full-year 2025 revenue guidance, reflecting confidence in its strategic execution and financial outlook.

Spark’s Take on ACIW Stock

According to Spark, TipRanks’ AI Analyst, ACIW is a Outperform.

ACI Worldwide’s overall score reflects its strong financial performance and positive earnings call insights, which are the primary drivers of the high score. Technical analysis shows mixed signals, with some potential for upward movement. Valuation is moderate, with a P/E ratio suggesting the stock is fairly valued, although the lack of a dividend yield is a minor drawback.

To see Spark’s full report on ACIW stock, click here.

ACI Worldwide Reports Strong 2024 Financial Performance

ACI Worldwide reported a strong financial performance for the year ending December 31, 2024, with a 10% increase in total revenue to $1.594 billion and a 67% rise in net income to $203 million. The company also saw a significant growth in cash flow from operating activities, which more than doubled to $359 million. The bank and merchant segments showed notable revenue and adjusted EBITDA growth, while the biller segment experienced a decrease in adjusted EBITDA due to non-recurring margin benefits. ACI Worldwide is poised for continued growth in 2025, with expected revenue growth between 7% and 9% and a focus on becoming a leader in Intelligent Payments Orchestration.