Acacia Research Corp

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ACTG : NASDAQ : Services
$5.05 up 0.28 | 5.90%
Today's Range: 4.71 - 5.09
Avg. Daily Volume: 384,000
07/27/16 - 3:59 PM ET

Financial Analysis


ACACIA RESEARCH CORP's gross profit margin for the first quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ACACIA RESEARCH CORP is extremely liquid. Currently, the Quick Ratio is 5.48 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 35.48% 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 FY16 Q1 FY15
Net Sales ($mil)24.7234.21
EBITDA ($mil)2.84-0.08
EBIT ($mil)-7.96-13.18
Net Income ($mil)-9.97-13.13


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)156.85165.56
Total Assets ($mil)339.81507.36
Total Debt ($mil)0.00.0
Equity ($mil)302.05468.15


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin11.5-0.24
EBITDA Margin11.5-0.24
Operating Margin-32.2-38.54
Sales Turnover0.340.3
Return on Assets-46.16-10.78
Return on Equity-51.93-11.69
Debt Q1 FY16 Q1 FY15
Current Ratio5.626.16
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)50.4651.05
Div / share0.00.13
EPS-0.2-0.27
Book value / share5.999.17
Institutional Own % n/a n/a
Avg Daily Volume418669.0775751.0

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 0.77 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 6.18. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. 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 44.35   ACTG 13.84 Peers 23.52

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 11.00 Peers 21.00   ACTG NA Peers 2.87

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ACTG is trading at a significant premium 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 0.77 Peers 6.18   ACTG -177.19 Peers 17.64

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 2.02 Peers 3.53   ACTG -24.24 Peers 13.27

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.

 

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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