Acacia Research Corporation
Find Ratings ReportsACACIA RESEARCH CORP's gross profit margin for the third quarter of its fiscal year 2023 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. ACACIA RESEARCH CORP is extremely liquid. Currently, the Quick Ratio is 21.08 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 78.34% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 10.08 | 15.88 |
EBITDA ($mil) | -3.76 | -7.48 |
EBIT ($mil) | -7.12 | -10.85 |
Net Income ($mil) | 1.64 | 28.09 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 445.99 | 401.18 |
Total Assets ($mil) | 529.15 | 485.27 |
Total Debt ($mil) | 2.73 | 65.09 |
Equity ($mil) | 492.56 | 276.19 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 29.13 | 54.5 |
EBITDA Margin | -37.25 | -47.12 |
Operating Margin | -70.61 | -68.31 |
Sales Turnover | 0.09 | 0.23 |
Return on Assets | -4.92 | 20.1 |
Return on Equity | -7.36 | 32.59 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 22.6 | 5.0 |
Debt/Capital | 0.01 | 0.19 |
Interest Expense | 0.13 | 1.07 |
Interest Coverage | -54.77 | -10.12 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 99.89 | 38.54 |
Div / share | 0.0 | 0.0 |
EPS | -0.03 | 0.02 |
Book value / share | 4.93 | 7.17 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 168267.0 | 227648.0 |
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.81 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 75.73. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, ACACIA RESEARCH CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ACTG NM | Peers 26.07 | ACTG NM | Peers 24.29 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. ACTG's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ACTG's P/CF is negative making the measure meaningless. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ACTG 14.21 | Peers 21.35 | ACTG NA | Peers 3.01 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. ACTG's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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ACTG 0.81 | Peers 75.73 | ACTG 62.80 | Peers 342.07 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ACTG is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ACTG is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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ACTG 8.66 | Peers 11.47 | ACTG -58.02 | Peers -0.46 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ACTG is trading at a discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ACTG significantly trails its peers on the basis of sales growth. |
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