📊 ACIW Key Takeaways
Is Aci Worldwide, Inc.. (ACIW) a Good Investment?
ACI Worldwide generates positive free cash flow (61.2M, 14.4% margin) and maintains moderate leverage (0.54x debt-to-equity), but is severely hampered by historically poor capital efficiency with ROE of only 2.6% and ROA of 1.2%. The concerning 1.5x interest coverage ratio provides minimal financial flexibility, while the suspicious 4195% YoY revenue surge (likely acquisition-driven) introduces significant execution risk.
ACI Worldwide shows solid core fundamentals, with double-digit net income and EPS growth, healthy operating and free cash flow generation, and manageable leverage supported by good interest coverage. Profitability is respectable for a software business, but the extreme revenue growth figure and missing gross margin data raise questions about growth quality and comparability, making the current fundamental picture positive but not clean enough for a more aggressive rating.
Aci Worldwide, Inc.. Key Strengths (ACIW)
- Strong free cash flow generation at 61.2M with 14.4% FCF margin despite low profitability metrics
- Moderate debt-to-equity leverage at 0.54x provides balance sheet stability relative to equity base
- Reasonable operating margin of 13.5% demonstrates underlying business can generate acceptable operational returns
- Strong cash generation, with $322.83M of operating cash flow and $309.92M of free cash flow supporting financial flexibility
- Healthy profitability profile, including 18.7% operating margin, 12.9% net margin, 14.9% ROE, and 7.3% ROA
- Balance sheet appears sound, with 1.54x current and quick ratios, moderate 0.54x debt-to-equity, and 8.8x interest coverage
ACIW Stock Risks: Aci Worldwide, Inc.. Investment Risks
- Critically weak return metrics: ROE 2.6% and ROA 1.2% indicate severe capital deployment inefficiency
- Interest coverage ratio of 1.5x leaves dangerous margin for error; covenant breach risk if operations deteriorate
- Massive revenue spike (4195% YoY) strongly suggests acquisition; integration execution risk and synergy realization unclear
- Reported revenue growth of +4195.1% suggests a potential one-time distortion, restatement effect, or comparability issue that clouds true operating momentum
- Gross profit and gross margin are unavailable, limiting visibility into underlying unit economics and margin durability
- Long-term debt of $817.61M is manageable today but still meaningful if earnings growth or cash conversion weakens
Key Metrics to Watch
- Interest coverage ratio improvement toward minimum 2.0-2.5x threshold for debt service safety
- ROE and ROA trajectory to confirm whether acquisition value creation materializes
- Organic revenue growth and core business cash generation excluding acquisition impacts
- Normalized revenue growth and recurring revenue quality in future SEC filings
- Operating margin and free cash flow conversion relative to net income
Aci Worldwide, Inc.. (ACIW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Aci Worldwide, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ACIW Profit Margin, ROE & Profitability Analysis
ACIW vs Technology Sector: How Aci Worldwide, Inc.. Compares
How Aci Worldwide, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aci Worldwide, Inc.. Stock Overvalued? ACIW Valuation Analysis 2026
Based on fundamental analysis, Aci Worldwide, Inc.. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aci Worldwide, Inc.. Balance Sheet: ACIW Debt, Cash & Liquidity
ACIW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aci Worldwide, Inc..'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.12 reflects profitable operations.
ACIW Revenue Growth, EPS Growth & YoY Performance
ACIW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $394.6M | $38.3M | $0.37 |
| Q3 2025 | $451.8M | $81.4M | $0.77 |
| Q2 2025 | $373.5M | $12.2M | $0.12 |
| Q1 2025 | $316.0M | -$7.8M | $-0.07 |
| Q3 2024 | $363.0M | -$1.1M | $-0.01 |
| Q2 2024 | $323.3M | -$6.7M | $-0.06 |
| Q1 2024 | $289.7M | -$7.8M | $-0.07 |
| Q3 2023 | $306.6M | -$1.1M | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aci Worldwide, Inc.. Dividends, Buybacks & Capital Allocation
ACIW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aci Worldwide, Inc.. (CIK: 0000935036)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780953901.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780953549.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780953057.xml | View → |
| Jun 3, 2026 | 4 | xslF345X06/wk-form4_1780528313.xml | View → |
| Jun 3, 2026 | 4 | xslF345X06/wk-form4_1780527860.xml | View → |
❓ Frequently Asked Questions about ACIW
What is the AI rating for ACIW?
Aci Worldwide, Inc.. (ACIW) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 58% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACIW's key strengths?
Claude: Strong free cash flow generation at 61.2M with 14.4% FCF margin despite low profitability metrics. Moderate debt-to-equity leverage at 0.54x provides balance sheet stability relative to equity base. ChatGPT: Strong cash generation, with $322.83M of operating cash flow and $309.92M of free cash flow supporting financial flexibility. Healthy profitability profile, including 18.7% operating margin, 12.9% net margin, 14.9% ROE, and 7.3% ROA.
What are the risks of investing in ACIW?
Claude: Critically weak return metrics: ROE 2.6% and ROA 1.2% indicate severe capital deployment inefficiency. Interest coverage ratio of 1.5x leaves dangerous margin for error; covenant breach risk if operations deteriorate. ChatGPT: Reported revenue growth of +4195.1% suggests a potential one-time distortion, restatement effect, or comparability issue that clouds true operating momentum. Gross profit and gross margin are unavailable, limiting visibility into underlying unit economics and margin durability.
What is ACIW's revenue and growth?
Aci Worldwide, Inc.. reported revenue of $425.7M.
Does ACIW pay dividends?
Aci Worldwide, Inc.. does not currently pay dividends.
Where can I find ACIW SEC filings?
Official SEC filings for Aci Worldwide, Inc.. (CIK: 0000935036) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACIW's EPS?
Aci Worldwide, Inc.. has a diluted EPS of $0.37.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ACIW's fundamental grade?
Based on our AI fundamental analysis in June 2026, Aci Worldwide, Inc.. has a B grade with 58% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ACIW stock overvalued or undervalued?
Valuation metrics for ACIW: ROE of 2.6% (sector avg: 22%), net margin of 9.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is ACIW's AI grade for 2026?
Our dual AI analysis gives Aci Worldwide, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ACIW's free cash flow?
Aci Worldwide, Inc..'s operating cash flow is $64.2M, with capital expenditures of $3.0M. FCF margin is 14.4%.
How does ACIW compare to other Technology stocks?
Vs Technology sector averages: Net margin 9.0% (avg: 18%), ROE 2.6% (avg: 22%), current ratio 1.53 (avg: 2.5).