Acacia Research Corp

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ACTG : NASDAQ : Services
$6.32 -0.22 | -3.40%
Today's Range: 6.30 - 6.70
Avg. Daily Volume: 517,600
09/29/16 - 3:30 PM ET

Financial Analysis


ACACIA RESEARCH CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ACACIA RESEARCH CORP is extremely liquid. Currently, the Quick Ratio is 6.50 which clearly shows the ability to cover any short-term cash needs. ACTG managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 43.00% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)41.3540.34
EBITDA ($mil)14.7814.29
EBIT ($mil)3.981.0
Net Income ($mil)-40.57-3.69


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)186.05166.89
Total Assets ($mil)296.41503.96
Total Debt ($mil)0.00.0
Equity ($mil)262.9461.29


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin35.7535.42
EBITDA Margin35.7435.41
Operating Margin9.632.48
Sales Turnover0.390.28
Return on Assets-65.36-9.02
Return on Equity-73.69-9.85
Debt Q2 FY16 Q2 FY15
Current Ratio6.666.65
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)50.3949.25
Div / share0.00.13
EPS-0.81-0.08
Book value / share5.229.37
Institutional Own % n/a n/a
Avg Daily Volume509883.0465944.0

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 1.24 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 7.94. The price-to-sales ratio is well 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 35.35   ACTG 9.44 Peers 17.10

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 11.85 Peers 20.61   ACTG NA Peers 1.21

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 1.24 Peers 7.94   ACTG -309.47 Peers 101.70

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 2.79 Peers 3.70   ACTG -18.36 Peers 41.32

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 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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