ACI Worldwide (ACIW) AI Stock Analysis

• Market Cap: $5.39B
• Dividend Yield: N/A
• Average Volume (3M): 923.49K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.22
• Revenue Growth: 11.22%
• EPS Growth: 40.85%
• Country: US
• Employees: 3,103
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.12
• Shares Outstanding: 103,192,070
• 10 Day Avg. Volume: 1,014,657
• 30 Day Avg. Volume: 923,488
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 3.28
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: 11.52
• 1Y Price Target: $62.00
• Price Target Upside: 18.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $53.00 ▲(1.42% Upside)

ACI Worldwide's strong financial performance and positive earnings call are the primary drivers of its score. The company's strategic initiatives and raised guidance enhance its outlook. Technical indicators show positive momentum, though caution is advised due to potential overbought conditions. The valuation is reasonable but lacks a dividend yield, which may deter some investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Strategic Initiatives

The launch of the Connetic platform positions ACI as a leader in payment solutions, potentially driving future growth and innovation.

Improved Financial Position

Refinancing debt improves financial flexibility and reduces interest expenses, supporting long-term financial health.

Negative Factors

Decline in Payment Software Segment

A decline in this segment could indicate competitive pressures or market challenges, potentially impacting future growth.

Reduced Cash Flow

Reduced cash flow may limit investment capacity and operational flexibility, affecting long-term strategic initiatives.

Gross Profit Margin Decline

A declining gross profit margin could signal rising costs or pricing pressure, impacting profitability if the trend continues.

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 software licensing, maintenance, and transaction fees. The company offers its products on a subscription basis, providing a steady stream of recurring revenue. Additionally, ACI earns money from professional services, which include consulting, implementation, and support for its software solutions. Significant partnerships with banks and payment processors enhance ACI's market reach and drive revenue growth, as these partnerships often involve long-term contracts that provide ongoing service fees. The increasing demand for real-time payment solutions and fraud prevention services, particularly in the digital commerce space, further contributes to ACI's earnings potential.

ACI Worldwide Financial Statement Overview

Summary

ACI Worldwide demonstrates consistent revenue growth and strong profitability metrics. The company effectively manages leverage and generates robust cash flow, despite minor concerns about margin trends and cash flow volatility.

Income Statement

ACI Worldwide has demonstrated consistent revenue growth over the years, with a notable increase in the TTM period. The company maintains healthy gross and net profit margins, indicating strong profitability. However, there is a slight decline in gross profit margin over time, which could be a concern if it continues.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating better leverage management. Return on equity has shown positive growth, reflecting efficient use of equity. However, the equity ratio is moderate, suggesting a balanced approach to financing with both debt and equity.

Cash Flow

ACI Worldwide has shown impressive free cash flow growth, especially in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings. However, fluctuations in free cash flow growth in previous years suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70B	1.59B	1.45B	1.42B	1.37B	1.29B
Gross Profit	855.00M	802.50M	733.37M	725.83M	731.73M	671.86M
EBITDA	484.65M	443.55M	360.11M	398.19M	364.03M	319.02M
Net Income	251.05M	203.12M	121.51M	142.18M	127.79M	72.66M
Balance Sheet
Total Assets	3.14B	3.03B	3.44B	3.21B	3.16B	3.39B
Cash, Cash Equivalents and Short-Term Investments	189.70M	216.39M	164.24M	124.98M	122.06M	165.37M
Total Debt	946.28M	956.43M	1.08B	1.12B	1.11B	1.19B
Total Liabilities	1.74B	1.60B	2.12B	2.02B	1.91B	2.18B
Stockholders Equity	1.39B	1.42B	1.32B	1.19B	1.24B	1.21B
Cash Flow
Free Cash Flow	311.01M	343.35M	130.74M	103.49M	175.10M	289.67M
Operating Cash Flow	313.51M	358.75M	168.52M	143.38M	220.47M	336.30M
Investing Cash Flow	8.48M	-45.05M	-37.78M	60.25M	-45.37M	-30.70M
Financing Cash Flow	-252.47M	-288.20M	-111.55M	-171.06M	-256.88M	-261.57M

ACI Worldwide Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACIW, the sentiment is Positive. The current price of 52.26 is above the 20-day moving average (MA) of 50.65, above the 50-day MA of 47.56, and above the 200-day MA of 50.02, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACIW.

ACI Worldwide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVTC	75 Outperform	$2.18B	16.02	23.83%	0.59%	12.92%	101.57%
ACIW	74 Outperform	$5.39B	22.12	19.09%	―	11.22%	40.85%
ODD	74 Outperform	$3.40B	34.03	31.36%	―	26.12%	28.03%
WEX	69 Neutral	$5.50B	20.29	31.31%	―	-1.62%	36.57%
EEFT	68 Neutral	$3.67B	12.23	24.48%	―	8.71%	25.75%
STNE	56 Neutral	$5.08B	-27.75	-10.95%	―	-20.82%	-154.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

ACI Worldwide Corporate Events

ACI Worldwide Reports Strong Q2 2025 Financial Performance

ACI Worldwide reported a strong financial performance for the quarter ending June 30, 2025, with a 7% increase in Q2 revenue and a 15% rise in year-to-date revenue compared to the previous year. The company also saw significant growth in its Payment Software and Biller segments, and repurchased 2.4 million shares, enhancing shareholder value. ACI raised its full-year 2025 guidance for revenue and adjusted EBITDA, reflecting the positive impact of organizational improvements and strategic opportunities, while continuing to focus on developing its Connetic payments hub platform.

ACI Worldwide Secures $200M Loan Agreement with BofA

On June 18, 2025, ACI Worldwide, Inc. and its subsidiaries entered into an agreement with Bank of America to supplement their existing credit agreement, allowing for incremental term loans totaling $200 million. The funds were used to fully redeem $400 million of senior notes due in 2026, improving the company’s financial positioning by managing its debt obligations.

ACI Worldwide Appoints New CFO Robert Leibrock

On June 9, 2025, ACI Worldwide, Inc. announced the appointment of Robert Leibrock as its new Chief Financial Officer and Chief Accounting Officer, effective July 1, 2025. Leibrock, who previously held senior roles at Red Hat and IBM, is expected to bring valuable experience in financial strategy and operational excellence to ACI Worldwide. This appointment marks a significant leadership transition as Scott Behrens will step down from his current roles but will remain with the company until the end of 2025. The change is poised to impact ACI Worldwide’s financial operations and strategic direction.