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ACACIA RESEARCH CORP (ACTG) Stock Fundamental Analysis

NASDAQ:ACTG - Nasdaq - US0038813079 - Common Stock - Currency: USD

3.68  -0.13 (-3.41%)

After market: 3.66 -0.02 (-0.54%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ACTG. ACTG was compared to 99 industry peers in the Financial Services industry. The financial health of ACTG is average, but there are quite some concerns on its profitability. While showing a medium growth rate, ACTG is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year ACTG has reported negative net income.
ACTG had a negative 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.
ACTG Yearly Net Income VS EBIT VS OCF VS FCFACTG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M -150M

1.2 Ratios

ACTG has a worse Return On Assets (-1.45%) than 84.85% of its industry peers.
ACTG has a Return On Equity of -2.14%. This is amonst the worse of the industry: ACTG underperforms 80.81% of its industry peers.
ACTG has a Return On Invested Capital (1.39%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA -1.45%
ROE -2.14%
ROIC 1.39%
ROA(3y)-7.87%
ROA(5y)1.65%
ROE(3y)-15.04%
ROE(5y)2.47%
ROIC(3y)N/A
ROIC(5y)N/A
ACTG Yearly ROA, ROE, ROICACTG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

With a Operating Margin value of 5.76%, ACTG is not doing good in the industry: 67.68% of the companies in the same industry are doing better.
ACTG has a Gross Margin of 47.03%. This is in the better half of the industry: ACTG outperforms 67.68% of its industry peers.
In the last couple of years the Gross Margin of ACTG has declined.
Industry RankSector Rank
OM 5.76%
PM (TTM) N/A
GM 47.03%
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%
ACTG Yearly Profit, Operating, Gross MarginsACTG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 200 -200

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACTG is destroying value.
ACTG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ACTG has been increased compared to 5 years ago.
ACTG has a worse debt/assets ratio than last year.
ACTG Yearly Shares OutstandingACTG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
ACTG Yearly Total Debt VS Total AssetsACTG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that ACTG is not too dependend on debt financing.
ACTG's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. ACTG outperforms 67.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Altman-Z 1.35
ROIC/WACC0.16
WACC8.63%
ACTG Yearly LT Debt VS Equity VS FCFACTG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

2.3 Liquidity

A Current Ratio of 6.16 indicates that ACTG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 6.16, ACTG belongs to the top of the industry, outperforming 91.92% of the companies in the same industry.
ACTG has a Quick Ratio of 5.81. This indicates that ACTG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ACTG (5.81) is better than 91.92% of its industry peers.
Industry RankSector Rank
Current Ratio 6.16
Quick Ratio 5.81
ACTG Yearly Current Assets VS Current LiabilitesACTG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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6

3. Growth

3.1 Past

ACTG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -111.96%.
Looking at the last year, ACTG shows a very strong growth in Revenue. The Revenue has grown by 65.23%.
ACTG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 61.31% yearly.
EPS 1Y (TTM)-111.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-10.71%
Revenue 1Y (TTM)65.23%
Revenue growth 3Y11.6%
Revenue growth 5Y61.31%
Sales Q2Q%411.6%

3.2 Future

The Earnings Per Share is expected to decrease by -55.64% on average over the next years. This is quite bad
Based on estimates for the next years, ACTG will show a very strong growth in Revenue. The Revenue will grow by 39.24% on average per year.
EPS Next Y202%
EPS Next 2Y-55.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year138.77%
Revenue Next 2Y39.24%
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.
ACTG Yearly Revenue VS EstimatesACTG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
ACTG Yearly EPS VS EstimatesACTG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2020 2021 2022 2023 2024 2025 2026 0 2 -2

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ACTG. In the last year negative earnings were reported.
Also next year ACTG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
ACTG Price Earnings VS Forward Price EarningsACTG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 -20 -30

4.2 Price Multiples

97.98% of the companies in the same industry are more expensive than ACTG, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 2.05
ACTG Per share dataACTG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4

4.3 Compensation for Growth

ACTG's earnings are expected to decrease with -55.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-55.64%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

ACTG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ACACIA RESEARCH CORP

NASDAQ:ACTG (6/13/2025, 8:00:00 PM)

After market: 3.66 -0.02 (-0.54%)

3.68

-0.13 (-3.41%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-06 2025-08-06
Inst Owners87.48%
Inst Owner Change-0.41%
Ins Owners1.1%
Ins Owner Change3.66%
Market Cap367.58M
Analysts82.86
Price Target6.12 (66.3%)
Short Float %1.56%
Short Ratio5.1
Dividend
Industry RankSector 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)1
Avg EPS beat(2)218.46%
Min EPS beat(2)-71.57%
Max EPS beat(2)508.5%
EPS beat(4)1
Avg EPS beat(4)-308.42%
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)2
Avg Revenue beat(2)60.99%
Min Revenue beat(2)0.2%
Max Revenue beat(2)121.79%
Revenue beat(4)3
Avg Revenue beat(4)33.53%
Min Revenue beat(4)-16.14%
Max Revenue beat(4)121.79%
Revenue beat(8)6
Avg Revenue beat(8)156.77%
Revenue beat(12)8
Avg Revenue beat(12)106.41%
Revenue beat(16)10
Avg Revenue beat(16)169.47%
PT rev (1m)0%
PT rev (3m)-14.29%
EPS NQ rev (1m)-20%
EPS NQ rev (3m)-50%
EPS NY rev (1m)138.1%
EPS NY rev (3m)136.36%
Revenue NQ rev (1m)-3.51%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)29.21%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.65
P/FCF N/A
P/OCF N/A
P/B 0.68
P/tB 0.82
EV/EBITDA 2.05
EPS(TTM)-0.11
EYN/A
EPS(NY)-0.19
Fwd EYN/A
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)-0.02
OCFYN/A
SpS2.23
BVpS5.41
TBVpS4.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.45%
ROE -2.14%
ROCE 1.77%
ROIC 1.39%
ROICexc 2.54%
ROICexgc 3.31%
OM 5.76%
PM (TTM) N/A
GM 47.03%
FCFM N/A
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-Score2
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Debt/EBITDA 2.02
Cap/Depr 415.2%
Cap/Sales 73.96%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 6.16
Quick Ratio 5.81
Altman-Z 1.35
F-Score2
WACC8.63%
ROIC/WACC0.16
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)-111.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-10.71%
EPS Next Y202%
EPS Next 2Y-55.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)65.23%
Revenue growth 3Y11.6%
Revenue growth 5Y61.31%
Sales Q2Q%411.6%
Revenue Next Year138.77%
Revenue Next 2Y39.24%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-66.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year416.06%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-277.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y94.03%
OCF growth 3Y55.62%
OCF growth 5YN/A