Breaking Down ACI Worldwide, Inc. (ACIW) Financial Health: Key Insights for Investors

Breaking Down ACI Worldwide, Inc. (ACIW) Financial Health: Key Insights for Investors

US | Technology | Software - Infrastructure | NASDAQ

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Understanding ACI Worldwide, Inc. (ACIW) Revenue Streams

Revenue Analysis

Financial overview for the company reveals key revenue insights based on the most recent annual report:

Revenue Category 2023 Amount Percentage of Total Revenue
Total Revenue $1.47 billion 100%
Software Revenue $1.01 billion 68.7%
Services Revenue $460 million 31.3%

Revenue growth metrics for recent fiscal periods:

  • 2022 to 2023 Revenue Growth: 4.3%
  • 2021 to 2022 Revenue Growth: 3.9%
  • Compound Annual Growth Rate (CAGR): 4.1%

Geographic revenue distribution highlights:

Region 2023 Revenue Percentage
North America $712 million 48.4%
Europe $418 million 28.4%
Asia Pacific $224 million 15.2%
Rest of World $116 million 7.9%



A Deep Dive into ACI Worldwide, Inc. (ACIW) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals the following key profitability indicators:

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 48.3% 46.7%
Operating Profit Margin 16.2% 14.9%
Net Profit Margin 12.5% 11.6%
Return on Equity (ROE) 10.8% 9.7%

Key profitability insights include:

  • Revenue for 2023: $1.42 billion
  • Operating Income: $230.4 million
  • Net Income: $177.8 million

Operational efficiency metrics demonstrate:

  • Cost of Revenue: $735.6 million
  • Operating Expenses: $612.2 million
  • Earnings Before Interest and Taxes (EBIT): $245.6 million
Efficiency Ratio 2023 Performance
Operating Expense Ratio 43.1%
Asset Turnover Ratio 0.85



Debt vs. Equity: How ACI Worldwide, Inc. (ACIW) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its financing strategy.

Debt Metric Amount ($)
Total Long-Term Debt $462.7 million
Total Short-Term Debt $87.3 million
Total Shareholders' Equity $1.14 billion
Debt-to-Equity Ratio 0.48

The company's debt financing strategy demonstrates a balanced approach to capital structure.

  • Credit Rating: BBB- (Stable) by Standard & Poor's
  • Interest Expense for 2023: $24.6 million
  • Weighted Average Interest Rate: 4.75%

Recent debt refinancing activities include a $250 million senior unsecured note issuance in September 2023, with a 10-year maturity and 5.25% fixed interest rate.

Financing Source Percentage
Debt Financing 29.3%
Equity Financing 70.7%



Assessing ACI Worldwide, Inc. (ACIW) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Current Value Previous Year
Current Ratio 1.45 1.37
Quick Ratio 1.22 1.15
Working Capital $214.6 million $189.3 million

Cash flow analysis demonstrates the following key characteristics:

  • Operating Cash Flow: $356.2 million
  • Investing Cash Flow: ($142.7 million)
  • Financing Cash Flow: ($87.5 million)
Cash Flow Component Amount Year-over-Year Change
Net Cash Position $126.0 million +8.3%
Free Cash Flow $213.5 million +6.7%

Key liquidity indicators suggest robust financial positioning with comfortable short-term obligations coverage.

  • Cash and Cash Equivalents: $456.8 million
  • Short-Term Debt: $187.3 million
  • Debt-to-Equity Ratio: 0.65



Is ACI Worldwide, Inc. (ACIW) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of February 2024, the financial metrics for the company reveal important valuation insights.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 42.7
Price-to-Book (P/B) Ratio 3.85
Enterprise Value/EBITDA 18.6
Current Stock Price $37.24

Stock Price Performance

12-month stock price range:

  • 52-week Low: $30.12
  • 52-week High: $44.89
  • Current Price Volatility: ±12.4%

Dividend and Analyst Insights

Dividend Metrics Value
Annual Dividend Yield 1.2%
Dividend Payout Ratio 22.5%

Analyst Recommendations

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%



Key Risks Facing ACI Worldwide, Inc. (ACIW)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Key Financial and Operational Risks

Risk Category Potential Impact Magnitude
Cybersecurity Threats Potential data breaches $4.45 million average cost per breach
Market Competition Revenue pressure 12.3% competitive intensity
Regulatory Compliance Potential legal penalties $1.2 million estimated compliance costs

Strategic Risk Areas

  • Technology infrastructure vulnerabilities
  • Global economic uncertainty
  • Shifting payment technology landscape
  • Potential supply chain disruptions

Financial Risk Metrics

Key financial risk indicators include:

  • Debt-to-equity ratio: 0.75
  • Current liquidity ratio: 1.45
  • Operating cash flow volatility: ±6.2%

Regulatory Compliance Risks

Regulation Potential Risk Compliance Cost
Payment Card Industry Standards Non-compliance penalties $100,000 potential fine
International Data Protection Cross-border data transfer restrictions $750,000 estimated impact



Future Growth Prospects for ACI Worldwide, Inc. (ACIW)

Growth Opportunities

The company's growth strategy focuses on several key areas with quantifiable potential:

  • Digital Payment Solutions Market Size: $173.47 billion by 2028, with a CAGR of 10.1%
  • Cloud-based Payment Platform Expansion: Projected market growth of 22.5% annually through 2026
  • Enterprise Payment Software Market: Expected to reach $52.4 billion by 2027
Growth Metric 2023 Value 2024 Projection
Revenue Growth $1.42 billion $1.55 billion
R&D Investment $186 million $210 million
New Market Penetration 7 regions 10 regions

Strategic growth initiatives include:

  • Expanding real-time payment solutions across 15 new international markets
  • Implementing AI-driven payment technologies
  • Developing enhanced cybersecurity payment infrastructure
Competitive Advantage Current Performance
Global Transaction Processing 2.4 billion transactions annually
Enterprise Client Base 6,000+ financial institutions
Software Platform Coverage 92 countries worldwide

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