In Focus – ACIW

In our “In focus” reports, we do a detailed examination of one of the roughly 2,000 companies we cover to determine if the selected company is also one of the best stocks to buy now. In this report, we will cover ACI Worldwide (ACIW).

Background

ACI Worldwide (ACIW) is a software company that develops, markets, and supports a line of software and services that primarily facilitate electronic payments. This software and services are used mainly by financial institutions, retailers, and electronic payment processors. It also acts as sales agent for software developed by third parties.

ACI Worldwide is headquartered in New York, New York. However, it does business worldwide. And its products are sold in three geographic regions: the Americas, Europe/Middle East/Africa (EMEA), and Asia/Pacific.

Stock Fundamentals

ACI Worldwide scores well on many of the metrics we study. It is consistently profitable and it has cash flows that shadow its paper profits. Its operating margins and net margins are strong and holding steady (if not improving). Its other measures of efficiency are mostly average or above average. It even did well in the high-stress years of 2008 and 2009.

Furthermore, its growth has been stellar. Sales, profits and cash flows have all grown vigorously for roughly 10 years.

On the negative side, we would categorize its balance sheet as only of average strength, it pays no dividends, and its price multiples are on the high side. On balance, we feel ACIW’s overall fundamentals are only average. And we do not consider it one of the best stocks to buy now.

Stat Sheet – ACI Worldwide Inc. 5/3/16

Ticker ACIW
Industry Software & Programming
Price $ 20.06
Market Cap  $ 2,366
Dividend Yield 0.00
Dividend/CFOp 0.00
Equity/Assets 0.343
Average Equity/Assets 0.383
Financial Strength Average
Growth Prospects Above Average
Beta 1.34
Price Volatility Average
Stock Fundamentals C

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)

We provide much more research to help investors uncover the best stocks to buy now. If you would like to see more of this research, click the link below.

Best Stocks to Buy Now

If you would like to learn why we have a preference for the best dividend stocks, click the link below.

Best Dividend Stocks

Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

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In Focus – ACIW

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