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ACIW ACI Worldwide, Inc. - Fundamental Analysis

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ACIW Stock | Fundamental Analysis & Investment Insights
NASDAQ Technology Software - Infrastructure
Current Price Live
$40.88
Analyst Target
$63.2
+54.6% Upside
52W High
$58.14
52W Low
$38.53

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Confidence Score
78%
Analysis Accuracy
ACIW's Piotroski F-Score of 4 indicates a borderline healthy financial position, falling short of strong stability (7-9), which limits confidence in operational efficiency. The absence of an Altman Z-Score raises concern about default risk, particularly given a Debt/Equity ratio of 0.63 and a quick ratio of 0.90. While the company exhibits solid profitability (ROE 18.58%, gross margin 49.66%) and strong earnings growth (14.3% YoY), its valuation at $40.88 is significantly above the Graham Number ($28.22) and near the intrinsic value estimate ($70.27), suggesting potential overvaluation unless sustained high growth justifies the premium. The recent insider selling, despite minimal volume, adds a bearish signal to an otherwise resilient earnings track record.

Key Strengths

Strong gross and operating margins (49.66% and 26.72%) indicate pricing power and cost control
Consistent earnings beat rate (3 out of last 4 quarters) with average surprise of 30.13%
Robust ROE (18.58%) and positive ROIC (implied by strong profitability and capital efficiency)
Attractive forward P/E of 12.11, suggesting market pricing in future growth
High historical EPS growth (12.4% YoY, 211.4% Q/Q) and strong revenue growth (6.8% YoY)

Key Risks

Piotroski F-Score of 4 is below the threshold for strong financial health, indicating operational vulnerabilities
No Altman Z-Score available, creating uncertainty around bankruptcy risk despite moderate leverage
Insider selling activity (1 transaction, $0.20M) with no buys in 6 months, signaling potential internal skepticism
Current price ($40.88) is 45% above the Graham Number ($28.22), indicating significant premium valuation
Lack of dividend policy and payout history limits income appeal and investor base diversification
AI Fair Value Estimate
Based on comprehensive analysis
$68.5
+67.6% above current price

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