ACACIA RESEARCH CORP (ACTG) Stock Fundamental Analysis
USA - NASDAQ:ACTG - US0038813079 - Common Stock
3.5 USD
-0.17 (-4.63%)
3.5 USD
0 (0%)
Overall ACTG gets a fundamental rating of 3 out of 10. We evaluated ACTG against 99 industry peers in the Financial Services industry. While ACTG seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, ACTG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ACTG had positive earnings in the past year.
ACTG had a positive operating cash flow in the past year.
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
The Return On Assets of ACTG (-0.81%) is worse than 77.78% of its industry peers.
Looking at the Return On Equity, with a value of -1.17%, ACTG is doing worse than 75.76% of the companies in the same industry.
ACTG has a Return On Invested Capital of 0.56%. This is in the lower half of the industry: ACTG underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.81% | ||
| ROE | -1.17% | ||
| ROIC | 0.56% |
ROA(3y)-7.88%
ROA(5y)1.64%
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 2.09%. This is in the lower half of the industry: ACTG underperforms 69.70% of its industry peers.
ACTG has a better Gross Margin (42.78%) than 65.66% of its industry peers.
In the last couple of years the Gross Margin of ACTG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.09% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACTG is destroying value.
ACTG has less shares outstanding than it did 1 year ago.
ACTG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ACTG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that ACTG is in the distress zone and has some risk of bankruptcy.
ACTG's Altman-Z score of 1.42 is fine compared to the rest of the industry. ACTG outperforms 67.68% of its industry peers.
ACTG has a debt to FCF ratio of 6.23. This is a slightly negative value and a sign of low solvency as ACTG would need 6.23 years to pay back of all of its debts.
ACTG has a Debt to FCF ratio of 6.23. This is in the better half of the industry: ACTG outperforms 64.65% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that ACTG is not too dependend on debt financing.
ACTG has a better Debt to Equity ratio (0.19) than 65.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 6.23 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.07
WACC8.42%
2.3 Liquidity
ACTG has a Current Ratio of 8.88. This indicates that ACTG is financially healthy and has no problem in meeting its short term obligations.
ACTG's Current ratio of 8.88 is amongst the best of the industry. ACTG outperforms 95.96% of its industry peers.
A Quick Ratio of 8.36 indicates that ACTG has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 8.36, ACTG belongs to the best of the industry, outperforming 95.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.88 | ||
| Quick Ratio | 8.36 |
3. Growth
3.1 Past
ACTG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -92.65%.
The Revenue has decreased by -2.23% in the past year.
ACTG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 61.31% yearly.
EPS 1Y (TTM)-92.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%78.57%
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y11.6%
Revenue growth 5Y61.31%
Sales Q2Q%155.02%
3.2 Future
The Earnings Per Share is expected to decrease by -167.21% on average over the next years. This is quite bad
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
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
ACTG is valuated quite expensively with a Price/Earnings ratio of 70.00.
73.74% of the companies in the same industry are cheaper than ACTG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.56, ACTG is valued quite expensively.
The Forward Price/Earnings Ratio is negative for ACTG. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACTG indicates a rather cheap valuation: ACTG is cheaper than 100.00% of the companies listed in the same industry.
ACTG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.93 | ||
| EV/EBITDA | 0.77 |
4.3 Compensation for Growth
ACTG's earnings are expected to decrease with -167.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-167.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ACTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.5
-0.17 (-4.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners88.22%
Inst Owner Change0.54%
Ins Owners1.23%
Ins Owner Change6.4%
Market Cap349.60M
Revenue(TTM)122.31M
Net Income(TTM)-6.29M
Analysts82.86
Price Target5.1 (45.71%)
Short Float %1.83%
Short Ratio10.46
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)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-200%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70 | ||
| Fwd PE | N/A | ||
| P/S | 1.41 | ||
| P/FCF | 20.93 | ||
| P/OCF | 10.93 | ||
| P/B | 0.65 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 0.77 |
EPS(TTM)0.05
EY1.43%
EPS(NY)-0.57
Fwd EYN/A
FCF(TTM)0.17
FCFY4.78%
OCF(TTM)0.32
OCFY9.15%
SpS2.48
BVpS5.4
TBVpS4.52
PEG (NY)N/A
PEG (5Y)N/A
Graham Number2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.81% | ||
| ROE | -1.17% | ||
| ROCE | 0.71% | ||
| ROIC | 0.56% | ||
| ROICexc | 1.16% | ||
| ROICexgc | 1.55% | ||
| OM | 2.09% | ||
| PM (TTM) | N/A | ||
| GM | 42.78% | ||
| FCFM | 6.74% |
ROA(3y)-7.88%
ROA(5y)1.64%
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
ROICexgc growth 3YN/A
ROICexgc 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 | 6.23 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 34.77% | ||
| Cap/Sales | 6.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 8.88 | ||
| Quick Ratio | 8.36 | ||
| Altman-Z | 1.42 |
F-Score4
WACC8.42%
ROIC/WACC0.07
Cap/Depr(3y)187.63%
Cap/Depr(5y)210.35%
Cap/Sales(3y)49.28%
Cap/Sales(5y)43.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-92.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%78.57%
EPS Next Y-2%
EPS Next 2Y-167.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y11.6%
Revenue growth 5Y61.31%
Sales Q2Q%155.02%
Revenue Next Year107.61%
Revenue Next 2Y18.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-88.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year345.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y142.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y182.47%
OCF growth 3Y55.49%
OCF growth 5YN/A
ACACIA RESEARCH CORP / ACTG FAQ
What is the fundamental rating for ACTG stock?
ChartMill assigns a fundamental rating of 3 / 10 to ACTG.
What is the valuation status for ACTG stock?
ChartMill assigns a valuation rating of 1 / 10 to ACACIA RESEARCH CORP (ACTG). This can be considered as Overvalued.
Can you provide the profitability details for ACACIA RESEARCH CORP?
ACACIA RESEARCH CORP (ACTG) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for ACTG stock?
The Price/Earnings (PE) ratio for ACACIA RESEARCH CORP (ACTG) is 70 and the Price/Book (PB) ratio is 0.65.
How financially healthy is ACACIA RESEARCH CORP?
The financial health rating of ACACIA RESEARCH CORP (ACTG) is 6 / 10.