NasdaqGS:ACTG

Stock Analysis Report

Executive Summary

Acacia Research Corporation, together with its subsidiaries, invests in intellectual property and related absolute return assets; and engages in the licensing and enforcement of patented technologies.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Acacia Research's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACTG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

ACTG

11.0%

US Professional Services

9.9%

US Market


1 Year Return

-31.0%

ACTG

-7.5%

US Professional Services

-11.9%

US Market

Return vs Industry: ACTG underperformed the US Professional Services industry which returned -7.5% over the past year.

Return vs Market: ACTG underperformed the US Market which returned -11.9% over the past year.


Shareholder returns

ACTGIndustryMarket
7 Day-1.7%11.0%9.9%
30 Day-2.2%-17.2%-15.0%
90 Day-15.7%-18.8%-21.5%
1 Year-31.0%-31.0%-6.8%-7.5%-10.0%-11.9%
3 Year-60.9%-60.9%18.0%14.3%12.3%5.1%
5 Year-77.8%-78.8%34.6%27.3%32.5%18.1%

Price Volatility Vs. Market

How volatile is Acacia Research's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Acacia Research undervalued compared to its fair value and its price relative to the market?

0.65x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ACTG's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ACTG's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ACTG is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: ACTG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACTG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ACTG is good value based on its PB Ratio (0.7x) compared to the US Professional Services industry average (1.7x).


Next Steps

Future Growth

How is Acacia Research forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.3%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Acacia Research has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Acacia Research performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACTG is currently unprofitable.

Growing Profit Margin: ACTG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ACTG is unprofitable, but has reduced losses over the past 5 years at a rate of 14% per year.

Accelerating Growth: Unable to compare ACTG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ACTG is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (13.9%).


Return on Equity

High ROE: ACTG has a negative Return on Equity (-8.52%), as it is currently unprofitable.


Next Steps

Financial Health

How is Acacia Research's financial position?


Financial Position Analysis

Short Term Liabilities: ACTG's short term assets ($171.8M) exceed its short term liabilities ($11.7M).

Long Term Liabilities: ACTG's short term assets ($171.8M) exceed its long term liabilities ($5.4M).


Debt to Equity History and Analysis

Debt Level: ACTG is debt free.

Reducing Debt: ACTG has not had any debt for past 5 years.


Balance Sheet

Inventory Level: ACTG has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ACTG's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ACTG has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ACTG has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 14.4% each year


Next Steps

Dividend

What is Acacia Research's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ACTG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ACTG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACTG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACTG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ACTG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACTG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Cliff Press (65yo)

0.50

Tenure

US$385,724

Compensation

Mr. Clifford Press, also known as Cliff, has been Chief Executive Officer of Acacia Research Corporation since September 5, 2019. He has been a Partner and Managing Member at Oliver Press Partners, LLC sin ...


Leadership Team

NamePositionTenureCompensationOwnership
Clifford Press
CEO & Director0.50yrUS$385.72k0.076% $86.5k
Alfred Tobia
President1.75yrsUS$380.17k0.076% $86.5k
Marc Booth
VP & Chief Intellectual Property Officer1.58yrsUS$386.16k0.22% $248.9k
Clayton Haynes
Consultant1.58yrsUS$1.27mno data
Edward Treska
Consultant2.17yrsUS$1.66mno data
Li Yu
Corporate Controllerno datano datano data
Irene Byrne
VP Human Resourcesno datano datano data
Phillip Mitchell
Senior Vice President - Engineering6.92yrsno datano data
Darren Miller
Senior Vice President of Contracts - Legal4.17yrsno datano data
Eric Lucas
Senior Vice President - Licensing8yrsno datano data

2.2yrs

Average Tenure

54yo

Average Age

Experienced Management: ACTG's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Clifford Press
CEO & Director0.50yrUS$385.72k0.076% $86.5k
Alfred Tobia
President1.75yrsUS$380.17k0.076% $86.5k
Isaac Kohlberg
Independent Director0.83yrno datano data
Camran Nezhat
Member of Scientific Advisory Board16.5yrsno datano data
Katharine Wolanyk
Independent Director1.17yrsno data0.13% $148.3k
Jonathan Sagal
Independent Director0.33yrno data0.055% $62.3k
Maureen O'Connell
Independent Chairmanno dataUS$100.00k0.13% $148.3k

1.5yrs

Average Tenure

57yo

Average Age

Experienced Board: ACTG's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Acacia Research Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Acacia Research Corporation
  • Ticker: ACTG
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$113.367m
  • Shares outstanding: 50.39m
  • Website: https://www.acaciaresearch.com

Number of Employees


Location

  • Acacia Research Corporation
  • 4 Park Plaza
  • Suite 550
  • Irvine
  • California
  • 92614
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACTGNasdaqGS (Nasdaq Global Select)YesAcacia Technologies Common StockUSUSDDec 2002
AZG2DB (Deutsche Boerse AG)YesAcacia Technologies Common StockDEEURDec 2002
AZG2BRSE (Berne Stock Exchange)YesAcacia Technologies Common StockCHCHFDec 2002

Biography

Acacia Research Corporation, together with its subsidiaries, invests in intellectual property and related absolute return assets; and engages in the licensing and enforcement of patented technologies. It assists patent owners with the prosecution and development of their patent portfolios; protection of their patented inventions from unauthorized use; generation of licensing revenue from users of their patented technologies; and enforcement against unauthorized users of their patented technologies through the filing of patent infringement litigation. The company owns or controls the rights to various patent portfolios, which include U.S. patents and foreign counterparts covering technologies used in a range of industries. It has executed approximately 1,570 license agreements, and approximately 200 patent portfolio licensing and enforcement programs. Acacia Research Corporation was founded in 1993 and is headquartered in Irvine, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:35
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.