ACI Worldwide (ACIW) AI Stock Analysis

• Market Cap: $4.69B
• Dividend Yield: N/A
• Average Volume (3M): 638.59K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.97
• Revenue Growth: 7.01%
• EPS Growth: 17.48%
• Country: US
• Employees: 3,103
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.88
• Shares Outstanding: 103,088,005
• 10 Day Avg. Volume: 547,967
• 30 Day Avg. Volume: 638,593
• PEG Ratio: 0.37
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 3.43
• P/FCF Ratio: 15.95
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 3.56
• Enterprise Value/Gross Profit: 7.38
• Enterprise Value/Ebitda: 12.72
• 1Y Price Target: $68.00
• Price Target Upside: 56.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.56
• Revenue Forecast (FY): $1.87B

• Rating: 73 Outperform
• Price Target: $51.00 ▲(17.27% Upside)

ACI Worldwide's overall stock score reflects strong financial performance and positive earnings call insights, highlighting robust revenue growth and strategic initiatives. However, technical analysis indicates bearish momentum, which tempers the overall outlook. The valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling reinvestment in growth opportunities and shareholder returns.

Product Innovation

New product launches like ACI Connetic demonstrate innovation and potential for capturing new market segments, driving future growth.

Negative Factors

Leadership Restructuring

Leadership changes can disrupt strategic continuity and impact operational efficiency, potentially affecting long-term performance.

Foreign Exchange Impact

Currency fluctuations can affect revenue stability, posing a challenge to consistent financial performance in international markets.

Operational Cash Flow Decline

Declining operational cash flow may constrain liquidity, affecting the company's ability to fund operations and invest in growth.

ACI Worldwide Business Overview & Revenue Model

Company Description

ACI Worldwide, Inc., a software company, develops, markets, installs, and supports a range of software products and solutions for facilitating digital payments to banks, merchants, and billers worldwide. The company offers ACI Acquiring, a merchant management system to deliver digital innovation, improve fraud prevention, and reduce interchange fees; ACI Issuing, a digital payments issuing solution; and ACI Enterprise Payments Platform that provides payment processing and orchestration capabilities for digital payments. It also provides ACI Low Value Real-Time Payments, a platform for processing real-time payments; and ACI High Value Real-Time Payments, a payments engine that offers multi-bank, multi-currency, 24x7 payment processing, and SWIFT messaging. In addition, the company offers ACI Omni Commerce, a scalable, omni-channel payment processing platform; ACI Secure eCommerce solution; ACI Fraud Management, a real-time approach to fraud management; ACI Digital Business Banking, a cloud-based digital banking platform; and ACI Speedpay, an integrated suite of digital billing, payment, disbursement, and communication services. The company offers electronic bill presentment and payment services to consumer finance, insurance, healthcare, higher education, utility, government, and mortgage sectors; implementation services, including product installations and configurations, and custom software modifications; and business and technical consultancy, on-site support, product education, and testing services, as well as distributes or acts as a sales agent for software developed by third parties. It markets its products under the ACI Worldwide brand. The company was formerly known as Transaction Systems Architects, Inc. and changed its name to ACI Worldwide, Inc. in July 2007. The company was founded in 1975 and is based in Coral Gables, Florida.

How the Company Makes Money

ACI Worldwide generates revenue primarily through the sale of its software solutions and services, which include licensing fees, transaction-based fees, and maintenance and support services. Key revenue streams include software licenses for payment processing platforms, subscription fees for cloud-based services, and transactional fees based on the volume of payments processed through its systems. Significant partnerships with major banks and payment processors enhance its earnings by expanding its market reach and integrating its technology into various payment ecosystems. Additionally, ACI benefits from ongoing demand for digital payment solutions, which has been accelerated by the growth of e-commerce and the shift towards cashless transactions.

ACI Worldwide Financial Statement Overview

Summary

ACI Worldwide demonstrates strong financial performance with robust revenue growth, healthy profitability margins, and effective cash flow management. The company maintains a stable balance sheet with manageable leverage, although further debt reduction could enhance financial stability.

Income Statement

ACI Worldwide shows strong revenue growth with a TTM increase of 1.8% and consistent improvement over the past years. The company maintains healthy margins, with a TTM gross profit margin of 50.28% and a net profit margin of 14.76%. EBIT and EBITDA margins are also robust at 21.83% and 28.50%, respectively, indicating efficient cost management and operational effectiveness.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.68, showing manageable leverage. Return on equity is strong at 17.84%, indicating effective use of equity capital. The equity ratio stands at 46.78%, suggesting a solid equity base relative to total assets, although there is room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis reveals a significant free cash flow growth of 59.9% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 1.26, and the free cash flow to net income ratio is 0.99, indicating efficient conversion of earnings into cash. These metrics suggest strong liquidity and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.73B	1.59B	1.45B	1.42B	1.37B	1.29B
Gross Profit	835.68M	802.50M	733.37M	725.83M	731.73M	671.86M
EBITDA	484.64M	443.55M	360.11M	398.19M	364.03M	319.02M
Net Income	260.88M	203.12M	121.51M	142.18M	127.79M	72.66M
Balance Sheet
Total Assets	3.16B	3.03B	3.44B	3.21B	3.16B	3.39B
Cash, Cash Equivalents and Short-Term Investments	199.27M	216.39M	164.24M	124.98M	122.06M	165.37M
Total Debt	915.12M	956.43M	1.08B	1.14B	1.12B	1.21B
Total Liabilities	1.68B	1.60B	2.12B	2.02B	1.91B	2.18B
Stockholders Equity	1.48B	1.42B	1.32B	1.19B	1.24B	1.21B
Cash Flow
Free Cash Flow	300.73M	343.35M	130.74M	103.49M	175.10M	289.67M
Operating Cash Flow	327.54M	358.75M	168.52M	143.38M	220.47M	336.30M
Investing Cash Flow	6.24M	-45.05M	-37.78M	60.25M	-45.37M	-30.70M
Financing Cash Flow	-353.00M	-288.20M	-111.55M	-171.06M	-256.88M	-261.57M

ACI Worldwide Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 43.49 is below the 20-day moving average (MA) of 47.14, below the 50-day MA of 47.06, and below the 200-day MA of 48.18, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 30.63 is Neutral, neither overbought nor oversold. The STOCH value of 12.61 is Positive, 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
ACIW	73 Outperform	$4.69B	17.59	18.58%	―	7.01%	17.48%
WEX	73 Outperform	$5.53B	20.86	20.30%	―	-1.15%	-2.52%
ODD	73 Outperform	$1.94B	19.76	29.74%	―	25.80%	10.73%
EVTC	71 Outperform	$1.91B	13.24	25.05%	0.68%	9.67%	75.67%
EEFT	66 Neutral	$3.14B	10.90	23.10%	―	7.25%	-1.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STNE	51 Neutral	$3.91B	-28.89	-7.53%	―	-25.51%	-139.31%

ACI Worldwide Corporate Events

ACI Worldwide Announces $500 Million Share Buyback

ACI Worldwide reported a strong financial performance for the third quarter and year-to-date 2025, with a 7% increase in Q3 revenue and a 12% rise in year-to-date revenue compared to the previous year. The company also announced a $500 million share repurchase authorization and raised its full-year 2025 guidance for revenue and adjusted EBITDA. The introduction of ACI Connetic, a new cloud-native payments hub, and the successful Payments Unleashed summit highlight ACI’s commitment to innovation and operational excellence, positioning it for continued growth and value creation for shareholders.

The most recent analyst rating on (ACIW) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on ACI Worldwide stock, see the ACIW Stock Forecast page.