Acacia Research Corp

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ACTG : NASDAQ : Services
$5.85 | %
Today's Range: 5.75 - 6.0
Avg. Daily Volume: 344100.0
01/20/17 - 4:00 PM ET

Financial Analysis


ACACIA RESEARCH CORP's gross profit margin for the third quarter of its fiscal year 2016 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 4.47 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 36.53% 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 FY16 Q3 FY15
Net Sales ($mil)64.6612.99
EBITDA ($mil)22.79-9.63
EBIT ($mil)16.29-23.37
Net Income ($mil)7.08-27.31


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)160.38168.5
Total Assets ($mil)323.5467.65
Total Debt ($mil)0.00.0
Equity ($mil)272.88429.99


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin35.25-74.1
EBITDA Margin35.24-74.09
Operating Margin25.19-179.86
Sales Turnover0.520.25
Return on Assets-49.26-12.9
Return on Equity-58.4-14.03
Debt Q3 FY16 Q3 FY15
Current Ratio4.557.01
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)50.4650.75
Div / share0.00.13
EPS0.14-0.55
Book value / share5.418.47
Institutional Own % n/a n/a
Avg Daily Volume337921.0527579.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.15 indicates a significant discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 7.45. The price-to-sales ratio is below the S&P 500 average and is well below 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 36.22   ACTG 28.02 Peers 17.42

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ACTG 11.38 Peers 20.37   ACTG NA Peers 6.07

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 1.15 Peers 7.45   ACTG -158.06 Peers 62.78

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ACTG 1.86 Peers 3.70   ACTG 41.87 Peers 33.26

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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