- ACI Worldwide has grown significantly faster than many competitors. Yet, this growth has been driven by acquisitions and is unsustainable.
- These acquisitions have increased growth but are masking the company's organic growth issues. Organic revenue has grown in the low single digits over the last year and half.
- Acquisitions have helped growth but gross margin has suffered. Although higher than average, gross margin will continue to fall as revenue shifts toward lower margin revenue streams.
- ACI Worldwide's stock isn't undervalued and is at best fairly valued compared to peers.
- ACI Worldwide's slower future revenue growth, declining gross margin, and fairly valued stock will cause ACI Worldwide to underperform.