ACTG Fundamental Analysis - ACACIA RESEARCH CORP

Fundamental Rating

Taking everything into account, ACTG scores 3 out of 10 in our fundamental rating. ACTG was compared to 99 industry peers in the Financial Services industry. ACTG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ACTG is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year ACTG has reported negative net income.

In the past year ACTG had a positive cash flow from operations.

In multiple years ACTG reported negative net income over the last 5 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

ACTG has a Return On Assets of -0.83%. This is in the lower half of the industry: ACTG underperforms 78.79% of its industry peers.

ACTG has a Return On Equity of -1.19%. This is in the lower half of the industry: ACTG underperforms 75.76% of its industry peers.

The Return On Invested Capital of ACTG (0.55%) is worse than 64.65% of its industry peers.

		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

Looking at the Operating Margin, with a value of 2.02%, ACTG is doing worse than 70.71% of the companies in the same industry.

ACTG has a Gross Margin of 42.78%. This is in the better half of the industry: ACTG outperforms 62.63% of its industry peers.

ACTG's Gross Margin has declined in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

ACTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.

The number of shares outstanding for ACTG has been reduced compared to 1 year ago.

The number of shares outstanding for ACTG has been increased compared to 5 years ago.

The debt/assets ratio for ACTG is higher compared to a year ago.

2.2 Solvency

ACTG has an Altman-Z score of 1.36. This is a bad value and indicates that ACTG is not financially healthy and even has some risk of bankruptcy.

Looking at the Altman-Z score, with a value of 1.36, ACTG is in the better half of the industry, outperforming 65.66% 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.

The Debt to FCF ratio of ACTG (6.18) is better than 62.63% of its industry peers.

ACTG has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.

ACTG has a better Debt to Equity ratio (0.19) than 67.68% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.19
Debt/FCF	6.18
Altman-Z	1.36

ROIC/WACC0.07

WACC8.32%

2.3 Liquidity

ACTG has a Current Ratio of 8.80. This indicates that ACTG is financially healthy and has no problem in meeting its short term obligations.

ACTG has a better Current ratio (8.80) than 96.97% 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.

ACTG has a better Quick ratio (8.29) than 96.97% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	8.8
Quick Ratio	8.29

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for ACTG have decreased strongly by -106.19% in the last year.

ACTG shows a strong growth in Revenue. In the last year, the Revenue has grown by 62.45%.

ACTG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 61.31% yearly.

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.

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4. Valuation

4.1 Price/Earnings Ratio

ACTG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

Also next year ACTG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.

		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.

ACTG's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	21.5
EV/EBITDA	0.33

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

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5. Dividend

5.1 Amount

ACTG does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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ACACIA RESEARCH CORP

NASDAQ:ACTG (10/16/2025, 3:30:29 PM)

3.635

+0.18 (+5.36%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupFinancial Services

GICS IndustryFinancial Services

Earnings (Last)08-06 2025-08-06/bmo

Earnings (Next)11-10 2025-11-10

Inst Owners88.22%

Inst Owner Change0%

Ins Owners1.23%

Ins Owner Change3.4%

Market Cap363.09M

Analysts82.86

Price Target5.1 (40.3%)

Short Float %1.62%

Short Ratio8

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)0%

PT rev (3m)-16.67%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-150%

EPS NY rev (1m)0%

EPS NY rev (3m)-200%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-30.91%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-13.05%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S	1.47
P/FCF	21.5
P/OCF	11.45
P/B	0.67
P/tB	0.8
EV/EBITDA	0.33

EPS(TTM)-0.06

EYN/A

EPS(NY)-0.57

Fwd EYN/A

FCF(TTM)0.17

FCFY4.65%

OCF(TTM)0.32

OCFY8.73%

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	1.36

F-Score4

WACC8.32%

ROIC/WACC0.07

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 Year345.59%

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

ACACIA RESEARCH CORP (ACTG) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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