Acacia Research Corp

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ACTG : NASDAQ : Services
$4.0 -0.15 | -3.6%
Today's Range: 3.95 - 4.25
Avg. Daily Volume: 309400.0
07/20/17 - 11:00 AM ET

Financial Analysis


ACACIA RESEARCH CORP's gross profit margin for the first quarter of its fiscal year 2017 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 industry. ACACIA RESEARCH CORP is extremely liquid. Currently, the Quick Ratio is 11.13 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 15.20% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)8.8524.72
EBITDA ($mil)-6.042.84
EBIT ($mil)-11.58-7.96
Net Income ($mil)-11.83-9.97


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)156.76156.85
Total Assets ($mil)272.86339.81
Total Debt ($mil)0.00.0
Equity ($mil)256.13302.05


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin-68.1711.5
EBITDA Margin-68.1711.5
Operating Margin-130.74-32.2
Sales Turnover0.50.34
Return on Assets-20.49-46.16
Return on Equity-21.83-51.93
Debt Q1 FY17 Q1 FY16
Current Ratio11.475.62
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)50.5350.46
Div / share0.00.0
EPS-0.24-0.2
Book value / share5.075.99
Institutional Own % n/a n/a
Avg Daily Volume314912.0248663.0

Valuation


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 0.79 indicates a significant discount versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 8.16. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, ACACIA RESEARCH CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ACTG NM Peers 37.68   ACTG 9.19 Peers 19.80

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.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ACTG 8.99 Peers 20.71   ACTG NA Peers 0.97

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 significant 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ACTG 0.79 Peers 8.16   ACTG 64.56 Peers 26.99

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ACTG is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ACTG 1.48 Peers 3.97   ACTG 18.42 Peers 10.57

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 significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ACTG has a sales growth rate that significantly exceeds its peers.

 

 

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