ACACIA RESEARCH CORP (ACTG) Stock Fundamental Analysis
NASDAQ:ACTG - US0038813079 - Common Stock
3.33 USD
-0.08 (-2.35%)
3.33 USD
0 (0%)
Taking everything into account, ACTG scores 3 out of 10 in our fundamental rating. ACTG was compared to 102 industry peers in the Financial Services industry. The financial health of ACTG is average, but there are quite some concerns on its profitability. ACTG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ACTG had negative earnings in the past year.
ACTG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ACTG reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: ACTG reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.83%, ACTG is doing worse than 79.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of -1.19%, ACTG is doing worse than 75.49% of the companies in the same industry.
With a Return On Invested Capital value of 0.55%, ACTG is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.83% | ||
| ROE | -1.19% | ||
| ROIC | 0.55% |
ROA(3y)-7.87%
ROA(5y)1.65%
ROE(3y)-15.04%
ROE(5y)2.47%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ACTG has a Operating Margin of 2.02%. This is in the lower half of the industry: ACTG underperforms 70.59% of its industry peers.
ACTG has a Gross Margin of 42.78%. This is in the better half of the industry: ACTG outperforms 62.75% of its industry peers.
In the last couple of years the Gross Margin of ACTG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.02% | ||
| PM (TTM) | N/A | ||
| GM | 42.78% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-21.92%
GM growth 5Y-5.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACTG is destroying value.
The number of shares outstanding for ACTG has been reduced compared to 1 year ago.
Compared to 5 years ago, ACTG has more shares outstanding
ACTG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that ACTG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.35, ACTG is in the better half of the industry, outperforming 65.69% of the companies in the same industry.
ACTG has a debt to FCF ratio of 6.18. This is a slightly negative value and a sign of low solvency as ACTG would need 6.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.18, ACTG is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
ACTG has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
ACTG's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. ACTG outperforms 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.06
WACC8.48%
2.3 Liquidity
A Current Ratio of 8.80 indicates that ACTG has no problem at all paying its short term obligations.
ACTG's Current ratio of 8.80 is amongst the best of the industry. ACTG outperforms 96.08% of its industry peers.
ACTG has a Quick Ratio of 8.29. This indicates that ACTG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ACTG (8.29) is better than 96.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.8 | ||
| Quick Ratio | 8.29 |
3. Growth
3.1 Past
ACTG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -106.19%.
ACTG shows a strong growth in Revenue. In the last year, the Revenue has grown by 62.45%.
Measured over the past years, ACTG shows a very strong growth in Revenue. The Revenue has been growing by 61.31% on average per year.
EPS 1Y (TTM)-106.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%62.5%
Revenue 1Y (TTM)62.45%
Revenue growth 3Y11.6%
Revenue growth 5Y61.31%
Sales Q2Q%98.3%
3.2 Future
Based on estimates for the next years, ACTG will show a very negative growth in Earnings Per Share. The EPS will decrease by -167.21% on average per year.
The Revenue is expected to grow by 18.43% on average over the next years. This is quite good.
EPS Next Y-2%
EPS Next 2Y-167.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year107.61%
Revenue Next 2Y18.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ACTG. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for ACTG. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
ACTG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACTG is cheaper than 100.00% of the companies in the same industry.
61.76% of the companies in the same industry are more expensive than ACTG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.7 | ||
| EV/EBITDA | 0.24 |
4.3 Compensation for Growth
A cheap valuation may be justified as ACTG's earnings are expected to decrease with -167.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-167.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ACTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.33
-0.08 (-2.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners88.59%
Inst Owner Change-0.35%
Ins Owners1.25%
Ins Owner Change2.65%
Market Cap332.62M
Analysts82.86
Price Target5.1 (53.15%)
Short Float %1.58%
Short Ratio7.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)279.74%
Min EPS beat(2)50.98%
Max EPS beat(2)508.5%
EPS beat(4)2
Avg EPS beat(4)-246.16%
Min EPS beat(4)-1472.55%
Max EPS beat(4)508.5%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)56.56%
Min Revenue beat(2)-8.67%
Max Revenue beat(2)121.79%
Revenue beat(4)2
Avg Revenue beat(4)24.29%
Min Revenue beat(4)-16.14%
Max Revenue beat(4)121.79%
Revenue beat(8)6
Avg Revenue beat(8)162.13%
Revenue beat(12)7
Avg Revenue beat(12)103.9%
Revenue beat(16)9
Avg Revenue beat(16)146.75%
PT rev (1m)-16.67%
PT rev (3m)-16.67%
EPS NQ rev (1m)-150%
EPS NQ rev (3m)-114.29%
EPS NY rev (1m)-200%
EPS NY rev (3m)-200%
Revenue NQ rev (1m)-30.91%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-13.05%
Revenue NY rev (3m)-13.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.34 | ||
| P/FCF | 19.7 | ||
| P/OCF | 10.49 | ||
| P/B | 0.62 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 0.24 |
EPS(TTM)-0.06
EYN/A
EPS(NY)-0.57
Fwd EYN/A
FCF(TTM)0.17
FCFY5.08%
OCF(TTM)0.32
OCFY9.53%
SpS2.48
BVpS5.39
TBVpS4.52
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.83% | ||
| ROE | -1.19% | ||
| ROCE | 0.69% | ||
| ROIC | 0.55% | ||
| ROICexc | 1.13% | ||
| ROICexgc | 1.51% | ||
| OM | 2.02% | ||
| PM (TTM) | N/A | ||
| GM | 42.78% | ||
| FCFM | 6.81% |
ROA(3y)-7.87%
ROA(5y)1.65%
ROE(3y)-15.04%
ROE(5y)2.47%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-21.92%
GM growth 5Y-5.27%
F-Score4
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 6.18 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 33.96% | ||
| Cap/Sales | 5.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 8.8 | ||
| Quick Ratio | 8.29 | ||
| Altman-Z | 1.35 |
F-Score4
WACC8.48%
ROIC/WACC0.06
Cap/Depr(3y)189.58%
Cap/Depr(5y)211.52%
Cap/Sales(3y)49.19%
Cap/Sales(5y)43.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-106.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%62.5%
EPS Next Y-2%
EPS Next 2Y-167.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)62.45%
Revenue growth 3Y11.6%
Revenue growth 5Y61.31%
Sales Q2Q%98.3%
Revenue Next Year107.61%
Revenue Next 2Y18.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-88.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year416.06%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y143.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y181.73%
OCF growth 3Y55.62%
OCF growth 5YN/A