ACI Worldwide (ACIW) AI Stock Analysis

• Market Cap: $4.82B
• Dividend Yield: N/A
• Average Volume (3M): 666.92K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.17
• Revenue Growth: 13.11%
• EPS Growth: 91.21%
• Country: US
• Employees: 3,103
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 0.55
• Shares Outstanding: 104,899,640
• 10 Day Avg. Volume: 639,180
• 30 Day Avg. Volume: 666,920
• PEG Ratio: 1.25
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.27
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: 2.08
• 1Y Price Target: $64.25
• Price Target Upside: 41.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: $48.00 ▲(5.52%Upside)

ACI Worldwide's strong financial performance and positive earnings call provide a solid foundation. However, the bearish technical indicators and absence of a dividend yield weigh on the stock's attractiveness. The stock's reasonable valuation and positive corporate events bolster the outlook, but the upcoming CFO transition introduces some uncertainty.

Positive Factors

Non-recurring Revenue

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

Revenue Growth

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

Negative Factors

Future Guidance

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

Revenue Decline

ACIW's 4Q results were solid across the board, though due to license renewal timing specifically in the banks segment, revenue declined 4.9%.

ACI Worldwide Business Overview & Revenue Model

Company Description

ACI Worldwide (ACIW) is a global software company that provides mission-critical real-time payment solutions to corporations. The company operates in the financial technology sector, offering a wide range of products and services that enable electronic payments for banks, financial intermediaries, merchants, and corporates. Its core offerings include payment processing, fraud detection, and risk management solutions designed to ensure secure and efficient transactions across various channels.

How the Company Makes Money

ACI Worldwide generates revenue primarily through the licensing of its software products and the provision of related services. The company offers its solutions under both perpetual and subscription-based licensing models. In addition to software licensing, ACI Worldwide earns income from maintenance and support services, which provide ongoing technical assistance and software updates. Professional services, such as implementation, consulting, and training, also contribute to its revenue streams. Significant partnerships with financial institutions and technology companies enhance its market reach and play a crucial role in driving sales and expanding its customer base.

ACI Worldwide Financial Statement Overview

Summary

ACI Worldwide exhibits strong financial health with robust revenue and profit growth, effective cost management, and efficient cash flow conversion. Despite high debt levels, the company manages its equity and returns effectively. Continued focus on revenue growth and debt reduction could further enhance financial stability and shareholder value.

Income Statement

The company shows strong revenue growth with a TTM (Trailing-Twelve-Months) increase to $1.67 billion from $1.59 billion annually. Gross profit margin is healthy at 49.7%, and net profit margin improved to 16.1% in the TTM. EBIT and EBITDA margins are robust at 21.4% and 26.5%, respectively, indicating operational efficiency. However, the net income growth, while positive, could be more aggressive given the industry standards.

Balance Sheet

ACI Worldwide maintains a solid equity base with a debt-to-equity ratio at 0.58, which is manageable. Return on equity (ROE) is 18.2%, showing a good return on shareholder investments. The equity ratio is 46.3%, reflecting a balanced asset utilization. However, the total debt level, though reduced, remains considerable and could pose risks if not managed carefully.

Cash Flow

Operating cash flow is strong at $313.7 million, supporting a healthy free cash flow of $307.2 million. The operating cash flow to net income ratio is 1.16, indicating good cash conversion from earnings. Free cash flow to net income is also strong, suggesting effective cash management. However, the slight decline in free cash flow growth rate from the previous year suggests room for improvement in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67B	1.59B	1.45B	1.42B	1.37B	1.29B
Gross Profit	831.19M	802.50M	733.37M	725.83M	731.73M	671.86M
EBITDA	443.72M	443.55M	360.11M	398.19M	364.03M	319.02M
Net Income	269.74M	203.12M	121.51M	142.18M	127.79M	72.66M
Balance Sheet
Total Assets	3.20B	3.03B	3.44B	3.21B	3.16B	3.39B
Cash, Cash Equivalents and Short-Term Investments	230.06M	216.39M	164.24M	124.98M	122.06M	165.37M
Total Debt	866.78M	956.43M	1.08B	1.12B	1.11B	1.19B
Total Liabilities	1.72B	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	307.19M	343.35M	130.74M	103.49M	175.10M	289.67M
Operating Cash Flow	313.73M	358.75M	168.52M	143.38M	220.47M	336.30M
Investing Cash Flow	9.83M	-45.05M	-37.78M	60.25M	-45.37M	-30.70M
Financing Cash Flow	-195.06M	-288.20M	-111.55M	-171.06M	-256.88M	-261.57M

ACI Worldwide Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 45.49 is below the 20-day moving average (MA) of 45.99, below the 50-day MA of 48.25, and below the 200-day MA of 51.62, indicating a bearish trend. The MACD of -0.67 indicates Negative momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 69.79 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	$5.54B	15.26	35.88%	0.27%	-3.59%	-11.30%
PATH	68 Neutral	$6.79B	―	-3.62%	―	7.21%	23.13%
ACIW	67 Neutral	$4.82B	17.93	19.69%	―	13.11%	91.21%
CCCS	67 Neutral	$6.20B	676.76	0.46%	―	9.05%	―
QTWO	62 Neutral	$5.77B	―	-3.95%	―	13.12%	75.24%
ALGM	57 Neutral	$6.36B	―	-7.09%	―	-30.91%	-148.73%
Sector *	50 Neutral	AU$1.48B	1.44	-28.24%	3.27%	16.24%	-7.89%

ACI Worldwide Corporate Events

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.

The most recent analyst rating on (ACIW) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on ACI Worldwide stock, see the ACIW Stock Forecast page.

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.

The most recent analyst rating on (ACIW) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on ACI Worldwide stock, see the ACIW Stock Forecast page.

ACI Worldwide Holds Annual Stockholders Meeting, Approves Key Proposals

On June 3, 2025, ACI Worldwide, Inc. held its Annual Meeting of Stockholders, where three key proposals were voted on. The stockholders elected eight nominees to the Board of Directors, ratified Deloitte & Touche LLP as the independent auditor for 2025, and approved the executive compensation plan, reflecting continued support for the company’s leadership and strategic direction.

The most recent analyst rating on (ACIW) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on ACI Worldwide stock, see the ACIW Stock Forecast page.

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.