# ACI Worldwide (ACIW.US)

Canonical: https://gigainvestors.com/s/ACIW

Analysis as of: 2026-10-16T07:26:10.506Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $52.55 per share; close as of 2026-10-15.

Estimated value: low $34.65 per share, central $39.25 per share, high $45.37 per share. Buy at or below the central value $39.25 per share. Valuation as of 2026-10-16T07:26:10.506Z; scenarios are not confidence intervals.

Expected annual return: 8.1% at the stated quote. About 8.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.26×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.12×

- FY2019: 0.10×

- FY2020: 0.11×

- FY2021: 0.15×

- FY2022: 0.14×

- FY2023: 0.15×

- FY2024: 0.19×

- FY2025: 0.19×

- LTM to Jun 2026: 0.19×

### moat: pass

- ROIC, median of available years: 15.1%

- ROIC, second-lowest year: 11.0%

- Typical minus recent gross margin: 2.5 pp

- Typical gross margin (annual median): 51.5%

- Recent gross margin (lower of latest and 3-year median): 49.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: 9.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 30.1%

- FY2017: 11.7%

- FY2018: 14.3%

- FY2019: 9.9%

- FY2020: 11.0%

- FY2021: 15.9%

- FY2022: 14.4%

- FY2023: 18.0%

- FY2024: 26.6%

- FY2025: 25.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.60×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.3B

- Net income, five-year total: $821M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 2.5 pp

- Working capital / revenue, final three-year average: 31.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.77×

- FY2022: 1.69×

- FY2023: 1.79×

- FY2024: 1.52×

- FY2025: 1.43×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 14.3% vs 25.3%

- Per-share earnings: 0.72 to 1.91 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.3%

- Ordinary dilution, 5-year annual growth: -2.4%

- Market cap gain: $2.8B

- Cumulative retained earnings: $1.3B

- Diluted shares, 10-year annual growth: -1.3%

- Diluted shares, 5-year annual growth: -2.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.0%

- Per-share value change: $1.19

- Per-share value, starting three-year median: $0.72

- Per-share value, ending three-year median: $1.91

- Buybacks concentrated in cheaper years (correlation): 0.79

- Average buyback yield: 2.6%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $657M

- Cumulative net income, 10 years: $1.2B

- ROIC, first three-year median: 14.3%

- ROIC, last three-year median: 25.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.09

- FY2017: $0.04

- FY2018: $0.59

- FY2019: $0.57

- FY2020: $0.62

- FY2021: $1.08

- FY2022: $1.24

- FY2023: $1.12

- FY2024: $1.91

- FY2025: $2.16

### accounting: fail

- latest-year receivables to sales index (DSRI) exceeds 1.465

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -3.1%

- Receivables to sales index (DSRI): 1.84×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 21.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.42×

- Accounting red flags: 2

- Goodwill and intangibles / equity: 0.96×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.6%

- FY2017: -7.6%

- FY2018: -5.4%

- FY2019: -2.2%

- FY2020: -7.8%

- FY2021: -2.9%

- FY2022: -0.0%

- FY2023: -1.4%

- FY2024: -5.1%

- FY2025: -3.1%

## Holders

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 4.7% a year for ten years · sales +3.4%

Story as of 2026-10-16T09:58:13.550Z; price observation 2026-10-15.

Price needs cash profits to grow 4.7% a year for ten years

- 2025-08-07: ACI Worldwide Inc (NASDAQ:ACIW) Surpasses Q2 2025 Estimates and Raises Full-Year Guidance ([chartmill.com](https://www.chartmill.com/news/ACIW/Chartmill-32611-ACI-Worldwide-Inc-NASDAQACIW-Surpasses-Q2-2025-Estimates-and-Raises-Full-Year-Guidance))

- 2026-05-07: ACI Worldwide Reports Strong First Quarter 2026 Results and Raises Full-Year Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/aci-worldwide-reports-strong-first-100000947.html))

- 2026-06-15: ACI Worldwide (ACIW) Is Up 6.3% After Joining EPI And Powering Wero Wallet Integration ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/aci-worldwide-aciw-6-3-160911292.html))

### Sales · FY2025–2026

sales +3.4%; source https://www.sec.gov/Archives/edgar/data/935036/000093503626000011/aciw-20251231.htm; observed 2026-02-26.

- FY2017: $1.0B 

- FY2018: $1.0B 

- FY2019: $1.3B 

- FY2020: $1.3B 

- FY2021: $1.4B 

- FY2022: $1.4B 

- FY2023: $1.5B 

- FY2024: $1.6B 

- FY2025: $1.8B 

- FY2026: $1.8B 

### Gross margin · FY2025

gross margin 49%; source https://www.sec.gov/Archives/edgar/data/935036/000093503626000011/aciw-20251231.htm; observed 2026-02-26.

- FY2016: 55.8% 

- FY2017: 55.8% 

- FY2018: 57.4% 

- FY2019: 50.9% 

- FY2020: 51.9% 

- FY2021: 53.4% 

- FY2022: 51.0% 

- FY2023: 50.5% 

- FY2024: 50.3% 

- FY2025: 49.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 1.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/935036/000093503626000011/aciw-20251231.htm (filed 2026-02-26); FY2025: revenue 1759782000; grossProfit 862131000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ACIW.US: ACI Worldwide, Inc. develops, markets, installs, and supports software products and services for facilitating electronic payments in the United States and worldwide. It operates through Payment Software, and Billers segments. The company offers ACI Acquiring, a solution to process credit, debit, and prepaid card transactions, deliver digital innovation, fraud prevention, and reduce fees; ACI Issuing, a digital payment issuing solution; and ACI Connetic, a solution that offers payment services for processing, routing, and managing various payment types. It provides ACI real-time payments, a solution that provides connectivity to payment rails; ACI RTGS and cross-border, a payments engine that offers multi-currency, payment and STP processing, and back-office integration interfaces; and ACI digital central infrastructure, a solution that offers real-time payments service. Further, it offers ACI Payments Orchestration Platform, a payments platform that orchestrates and optimizes payments; ACI Fraud Management for merchants, billers, and financial institutions; ACI Fraud Scoring Services with artificial and human insights with data intelligence; and Speedpay, an integrated suite of digital billing, payment, disbursement, and communication services. Additionally, it offers electronic bill presentment and payment services to consumer finance, insurance, healthcare, higher education, utility, government, subscription provider, telecommunications, and mortgage sectors; product installations and configurations, and custom software modifications; and business and technical consultancy, on-site support, product education, and testing services, as well distributes software developed by third parties. It has strategic partnerships with dLocal. The company was formerly known as Transaction Systems Architects, Inc. and changed its name to ACI Worldwide, Inc. in July 2007. The company was founded in 1975 and is headquartered in Elkhorn, Nebraska.

### Why customers stay

Margins ranged from 49% to 50.5% during 2023–25; it earns 15.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 50.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 50.3%.

- Source: https://www.sec.gov/Archives/edgar/data/935036/000093503626000011/aciw-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 49%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,0.30064434114216754],[2017,0.11682539682539683],[2018,0.14284152153485088],[2019,0.09882347108786545],[2020,0.1100022399370403],[2021,0.1590877321608662],[2022,0.14352569206122093],[2023,0.1795360803904138],[2024,0.26636601657124054],[2025,0.2531614400331131]]; median 0.15130671211104357. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 6 of 10 years; bought back USD 202.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 0; upkeep 63080000; owner earnings 169909000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 0; upkeep 54414000; owner earnings 52945000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 43893000; owner earnings 122378000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 48014000; owner earnings 157551000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 46633000; owner earnings 189791000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 45368000; owner earnings 226331000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 39893000; owner earnings 240648000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 37777000; owner earnings 217725000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 15402000; owner earnings 308384000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/935036/000093503626000011/aciw-20251231.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 12907000; owner earnings 324621000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,85325000],[2017,495872000],[2018,528674000],[2019,788999000],[2020,41924000],[2021,29029000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/935036/000093503626000011/aciw-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 202638000 USD.

### Are managers owners

Insiders own 1.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ACIW.US SharesStats.PercentInsiders = 1.244 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.7% yearly over ten years; actual growth was 10.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.05376490723053562. Price 52.55; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.126497868296908 → FY2025 3.0973808501502793. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $18.12 per share

- 2016-11: $18.61 per share

- 2016-12: $18.15 per share

- 2017-01: $19.40 per share

- 2017-02: $19.57 per share

- 2017-03: $21.39 per share

- 2017-04: $21.49 per share

- 2017-05: $22.86 per share

- 2017-06: $22.37 per share

- 2017-07: $23.17 per share

- 2017-08: $22.76 per share

- 2017-09: $22.78 per share

- 2017-10: $24.08 per share

- 2017-11: $22.88 per share

- 2017-12: $22.67 per share

- 2018-01: $23.44 per share

- 2018-02: $23.65 per share

- 2018-03: $23.72 per share

- 2018-04: $23.25 per share

- 2018-05: $24.15 per share

- 2018-06: $24.67 per share

- 2018-07: $25.84 per share

- 2018-08: $28.41 per share

- 2018-09: $28.14 per share

- 2018-10: $25.09 per share

- 2018-11: $28.88 per share

- 2018-12: $27.67 per share

- 2019-01: $29.56 per share

- 2019-02: $31.87 per share

- 2019-03: $32.87 per share

- 2019-04: $35.52 per share

- 2019-05: $31.46 per share

- 2019-06: $34.34 per share

- 2019-07: $33.56 per share

- 2019-08: $29.78 per share

- 2019-09: $31.33 per share

- 2019-10: $31.39 per share

- 2019-11: $37.50 per share

- 2019-12: $37.89 per share

- 2020-01: $34.45 per share

- 2020-02: $27.87 per share

- 2020-03: $24.15 per share

- 2020-04: $27.40 per share

- 2020-05: $27.58 per share

- 2020-06: $26.99 per share

- 2020-07: $26.79 per share

- 2020-08: $29.38 per share

- 2020-09: $26.13 per share

- 2020-10: $29.17 per share

- 2020-11: $32.58 per share

- 2020-12: $38.43 per share

- 2021-01: $38.39 per share

- 2021-02: $38.26 per share

- 2021-03: $38.05 per share

- 2021-04: $37.78 per share

- 2021-05: $38.26 per share

- 2021-06: $37.14 per share

- 2021-07: $34.30 per share

- 2021-08: $32.23 per share

- 2021-09: $30.73 per share

- 2021-10: $30.68 per share

- 2021-11: $29.14 per share

- 2021-12: $34.70 per share

- 2022-01: $34.37 per share

- 2022-02: $33.52 per share

- 2022-03: $31.49 per share

- 2022-04: $27.62 per share

- 2022-05: $26.64 per share

- 2022-06: $25.89 per share

- 2022-07: $28.53 per share

- 2022-08: $23.70 per share

- 2022-09: $20.90 per share

- 2022-10: $24.33 per share

- 2022-11: $20.90 per share

- 2022-12: $23.00 per share

- 2023-01: $27.93 per share

- 2023-02: $25.85 per share

- 2023-03: $26.98 per share

- 2023-04: $25.33 per share

- 2023-05: $22.81 per share

- 2023-06: $23.17 per share

- 2023-07: $23.19 per share

- 2023-08: $24.28 per share

- 2023-09: $22.56 per share

- 2023-10: $20.37 per share

- 2023-11: $26.74 per share

- 2023-12: $30.60 per share

- 2024-01: $30.07 per share

- 2024-02: $32.91 per share

- 2024-03: $33.21 per share

- 2024-04: $34.10 per share

- 2024-05: $36.01 per share

- 2024-06: $39.59 per share

- 2024-07: $43.23 per share

- 2024-08: $50.36 per share

- 2024-09: $50.90 per share

- 2024-10: $49.20 per share

- 2024-11: $56.82 per share

- 2024-12: $51.91 per share

- 2025-01: $53.55 per share

- 2025-02: $57.35 per share

- 2025-03: $54.71 per share

- 2025-04: $53.36 per share

- 2025-05: $46.26 per share

- 2025-06: $45.91 per share

- 2025-07: $42.56 per share

- 2025-08: $49.35 per share

- 2025-09: $52.77 per share

- 2025-10: $47.63 per share

- 2025-11: $46.86 per share

- 2025-12: $47.81 per share

- 2026-01: $43.36 per share

- 2026-02: $39.68 per share

- 2026-03: $41.01 per share

- 2026-04: $43.22 per share

- 2026-05: $43.67 per share

- 2026-06: $50.29 per share

- 2026-07: $57.33 per share

- 2026-08: $53.28 per share

- 2026-09: $48.88 per share

- 2026-10: $52.55 per share

## Annual estimated value (USD per share)

- FY2016: low $11.98 per share, central $13.57 per share, high $15.68 per share

- FY2017: low $11.42 per share, central $12.94 per share, high $14.96 per share

- FY2018: low $12.46 per share, central $14.03 per share, high $16.12 per share

- FY2019: low $15.34 per share, central $17.34 per share, high $20.00 per share

- FY2020: low $16.18 per share, central $18.25 per share, high $21.00 per share

- FY2021: low $16.61 per share, central $18.79 per share, high $21.69 per share

- FY2022: low $20.79 per share, central $23.54 per share, high $27.21 per share

- FY2023: low $23.10 per share, central $26.12 per share, high $30.13 per share

- FY2024: low $28.75 per share, central $32.48 per share, high $37.44 per share

- FY2025: low $32.60 per share, central $36.88 per share, high $42.58 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/935036/000093503626000011/aciw-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.