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

0%

ACTG

1.5%

US Professional Services

0.8%

US Market


1 Year Return

-11.2%

ACTG

34.9%

US Professional Services

25.1%

US Market

Return vs Industry: ACTG underperformed the US Professional Services industry which returned 35.7% over the past year.

Return vs Market: ACTG underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ACTGIndustryMarket
7 Day0%1.5%0.8%
30 Day-0.4%6.0%3.1%
90 Day1.9%10.0%10.9%
1 Year-11.2%-11.2%36.1%34.9%27.7%25.1%
3 Year-54.4%-54.4%65.0%59.8%51.3%41.6%
5 Year-78.6%-79.7%92.6%82.2%77.2%57.6%

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?

0.79x

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 (0.8x) compared to the US Professional Services industry average (2.9x).


Next Steps

Future Growth

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

29.7%

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?

11.2%

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 11.2% 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 (23.5%).


Return on Equity

High ROE: ACTG has a negative Return on Equity (-16.71%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Acacia Research's financial position?


Financial Position Analysis

Short Term Liabilities: ACTG's short term assets ($173.5M) exceed its short term liabilities ($10.6M).

Long Term Liabilities: ACTG's short term assets ($173.5M) exceed its long term liabilities ($2.1M).


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 a year based on its current free cash flow.

Forecast Cash Runway: ACTG has sufficient cash runway for 1.6 years if free cash flow continues to reduce at historical rates of -81.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

What is the CEO of Acacia Research's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Cliff Press (65yo)

0.3yrs

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 ...


Management Age and Tenure

3.0yrs

Average Tenure

54yo

Average Age

Experienced Management: ACTG's management team is considered experienced (3 years average tenure).


Board Age and Tenure

1.0yrs

Average Tenure

57yo

Average Age

Experienced Board: ACTG's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$31,00619 Mar 19
Marc Booth
EntityIndividual
Role
Senior Key Executive
Chief Intellectual Property Officer
Shares10,000
Max PriceUS$3.10

Ownership Breakdown

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


Management Team

  • Marc Booth (60yo)

    Chief Intellectual Property Officer

    • Tenure: 1.4yrs
    • Compensation: US$386.16k
  • Clayton Haynes (49yo)

    Consultant

    • Tenure: 1.4yrs
    • Compensation: US$1.27m
  • Cliff Press (65yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: US$385.72k
  • Al Tobia (54yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$380.17k
  • Ed Treska (53yo)

    Consultant

    • Tenure: 2yrs
    • Compensation: US$1.66m
  • Phillip Mitchell

    Senior Vice President - Engineering

    • Tenure: 6.8yrs
  • Eric Lucas

    Senior Vice President - Licensing

    • Tenure: 7.8yrs
  • Darren Miller

    Senior Vice President of Contracts - Legal

    • Tenure: 4yrs
  • Holly Hernandez

    Senior Vice President - Licensing

    • Tenure: 4yrs
  • Irene Byrne

    VP Human Resources


    Board Members

    • Luis Rinaldini

      Independent Director

      • Tenure: 0.7yrs
    • Cliff Press (65yo)

      CEO & Director

      • Tenure: 0.3yrs
      • Compensation: US$385.72k
    • Isaac Kohlberg (68yo)

      Independent Director

      • Tenure: 0.7yrs
    • Camran Nezhat

      Member of Scientific Advisory Board

      • Tenure: 16.3yrs
    • Katharine Wolanyk (56yo)

      Independent Director

      • Tenure: 1yrs
    • Al Tobia (54yo)

      President

      • Tenure: 1.6yrs
      • Compensation: US$380.17k
    • Jon Sagal

      Independent Director

      • Tenure: 0.2yrs
    • Maureen O’Connell (57yo)

      Independent Chairman

      • Compensation: US$100.00k

    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: 1992
    • Industry: Research and Consulting Services
    • Sector: Commercial Services
    • Market Cap: US$135.537m
    • 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

    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 1,560 license agreements, and approximately 200 patent portfolio licensing and enforcement programs. Acacia Research Corporation was founded in 1992 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 Analysis2020/01/21 23:57
    End of Day Share Price2020/01/21 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.