ACACIA RESEARCH CORP's gross profit margin for the fourth quarter of its fiscal year 2014 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. ACACIA RESEARCH CORP is extremely liquid. Currently, the Quick Ratio is 4.64 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 12.98% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||31.03||15.07|
|Net Income ($mil)||-16.24||-33.33|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||193.02||256.7|
|Total Assets ($mil)||536.35||593.39|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||-4.66||-97.38|
|Return on Assets||-12.31||-9.51|
|Return on Equity||-13.65||-10.15|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||50.07||49.39|
|Div / share||0.13||0.13|
|Book value / share||9.66||11.25|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||640279.0||451254.0|
SELL. 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 1.12 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 10.47. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, ACACIA RESEARCH CORP seems to be trading at a premium to investment alternatives within the industry.
|ACTG NM||Peers 37.89||ACTG 129.23||Peers 39.08|
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.
Premium. 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 is trading at a significant premium to its peers.
|ACTG 10.38||Peers 21.15||ACTG NA||Peers 0.86|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
ACTG is trading at a discount to its peers.
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.
|ACTG 1.12||Peers 10.47||ACTG -16.94||Peers 30.81|
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.
|ACTG 4.13||Peers 3.25||ACTG 0.24||Peers 18.38|
Premium. 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 significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
ACTG significantly trails its peers on the basis of sales growth
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