Acacia Research Corporation
Acacia Research Corporation Fundamental Analysis
Acacia Research Corporation (ACTG) shows weak financial fundamentals with a PE ratio of 80.49, profit margin of 1.70%, and ROE of 0.91%. The company generates $0.3B in annual revenue with weak year-over-year growth of -2.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ACTG's fundamental strength across five key dimensions:
Efficiency Score
WeakACTG struggles to generate sufficient returns from assets.
Valuation Score
ModerateACTG shows balanced valuation metrics.
Growth Score
WeakACTG faces weak or negative growth trends.
Financial Health Score
ExcellentACTG maintains a strong and stable balance sheet.
Profitability Score
ModerateACTG maintains healthy but balanced margins.
Key Financial Metrics
Is ACTG Expensive or Cheap?
P/E Ratio
ACTG trades at 80.49 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ACTG's PEG of 0.46 indicates potential undervaluation.
Price to Book
The market values Acacia Research Corporation at 0.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.50 times EBITDA. This is generally considered low.
How Well Does ACTG Make Money?
Net Profit Margin
For every $100 in sales, Acacia Research Corporation keeps $1.70 as profit after all expenses.
Operating Margin
Core operations generate 1.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.91 in profit for every $100 of shareholder equity.
ROA
Acacia Research Corporation generates $0.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Acacia Research Corporation produces operating cash flow of $41.84M, showing steady but balanced cash generation.
Free Cash Flow
Acacia Research Corporation produces free cash flow of $28.18M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.29 in free cash annually.
FCF Yield
ACTG converts 7.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
80.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How ACTG Stacks Against Its Sector Peers
| Metric | ACTG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 80.49 | 26.49 | Worse (Expensive) |
| ROE | 0.91% | 1307.00% | Weak |
| Net Margin | 1.70% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.19 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 8.63 | 10.48 | Strong Liquidity |
| ROA | 0.63% | -1549793.00% (disorted) | Weak |
ACTG outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Acacia Research Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
445.52%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-5.58%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
1189.27%
Industry Style: Cyclical, Value, Infrastructure
High Growth