Acacia Communications, Inc. develops, manufactures, and sells high-speed coherent optical interconnect products in the United States, China, Germany, Thailand, and internationally.
Flawless balance sheet with reasonable growth potential.
Share Price & News
How has Acacia Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ACIA has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: ACIA exceeded the US Communications industry which returned -17.8% over the past year.
Return vs Market: ACIA exceeded the US Market which returned 10.2% over the past year.
Price Volatility Vs. Market
How volatile is Acacia Communications's share price compared to the market and industry in the last 5 years?
Simply Wall St News
7 months ago | Simply Wall StDoes Acacia Communications, Inc.'s (NASDAQ:ACIA) CEO Pay Matter?
8 months ago | Simply Wall StAcacia Communications, Inc. (NASDAQ:ACIA) Delivered A Weaker ROE Than Its Industry
8 months ago | Simply Wall StAcacia Communications, Inc. (NASDAQ:ACIA) Might Not Be A Great Investment
Is Acacia Communications undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ACIA ($68.35) is trading above our estimate of fair value ($51.98)
Significantly Below Fair Value: ACIA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ACIA is poor value based on its PE Ratio (85.1x) compared to the Communications industry average (22.9x).
PE vs Market: ACIA is poor value based on its PE Ratio (85.1x) compared to the US market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: ACIA is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: ACIA is overvalued based on its PB Ratio (4.9x) compared to the US Communications industry average (1.8x).
How is Acacia Communications forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ACIA's forecast earnings growth (45.8% per year) is above the savings rate (1.7%).
Earnings vs Market: ACIA's earnings (45.8% per year) are forecast to grow faster than the US market (13.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ACIA's revenue (14.1% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: ACIA's revenue (14.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ACIA's Return on Equity is forecast to be low in 3 years time (16.8%).
How has Acacia Communications performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ACIA has a large one-off loss of $7.6M impacting its December 31 2019 financial results.
Growing Profit Margin: ACIA's current net profit margins (7.1%) are higher than last year (1.4%).
Past Earnings Growth Analysis
Earnings Trend: ACIA's earnings have grown by 3.7% per year over the past 5 years.
Accelerating Growth: ACIA's earnings growth over the past year (568%) exceeds its 5-year average (3.7% per year).
Earnings vs Industry: ACIA earnings growth over the past year (568%) exceeded the Communications industry -19.9%.
Return on Equity
High ROE: ACIA's Return on Equity (5.7%) is considered low.
Return on Assets
Return on Capital Employed
How is Acacia Communications's financial position?
Financial Position Analysis
Short Term Liabilities: ACIA's short term assets ($482.0M) exceed its short term liabilities ($113.1M).
Long Term Liabilities: ACIA's short term assets ($482.0M) exceed its long term liabilities ($29.9M).
Debt to Equity History and Analysis
Debt Level: ACIA is debt free.
Reducing Debt: ACIA has no debt compared to 5 years ago when its debt to equity ratio was 5.5%.
Debt Coverage: ACIA has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: ACIA has no debt, therefore coverage of interest payments is not a concern.
Inventory Level: ACIA has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if ACIA's debt is covered by short term assets.
What is Acacia Communications's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate ACIA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ACIA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ACIA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ACIA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ACIA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Raj Shanmugaraj (61yo)
Mr. Shanmugaraj Shanmugaraj, also known as Raj, has been the Chief Executive Officer and President at Acacia Communications, Inc. since April 2010. Mr. Shanmugaraj has more than 25 years in telecom and com ...
CEO Compensation Analysis
Compensation vs Market: Raj's total compensation ($USD2.56M) is below average for companies of similar size in the US market ($USD4.98M).
Compensation vs Earnings: Raj's compensation has been consistent with company performance over the past year.
|Co-Founder and VP of Hardware & Software||4.7yrs||US$1.71m||1.26% $35.6m|
|CFO & Treasurer||8yrs||US$1.79m||0.052% $1.5m|
|Vice President of Global Sales||2.6yrs||US$1.74m||0.044% $1.3m|
|Co-Founder and VP of Digital Signal Processing & Optics||4.7yrs||US$2.48m||1.19% $33.8m|
|Senior Vice President of Operations||4.8yrs||no data||no data|
|VP of Finance||0yrs||no data||0.083% $2.4m|
|Chief Legal Officer & Secretary||4.8yrs||no data||no data|
|Vice President of Corporate Development||2.1yrs||no data||no data|
Experienced Management: ACIA's management team is considered experienced (4.8 years average tenure).
|Independent Director||4.8yrs||US$254.99k||0.051% $1.5m|
|Independent Director||2.4yrs||US$242.49k||0.020% $566.0k|
|Independent Director||6.8yrs||US$256.49k||0.040% $1.1m|
|Chairman of the Board||2.8yrs||US$265.99k||0.037% $1.1m|
|Independent Director||10.5yrs||US$248.99k||0.51% $14.4m|
|Independent Director||0.7yrs||no data||no data|
Experienced Board: ACIA's board of directors are considered experienced (5.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ACIA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Acacia Communications, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Acacia Communications, Inc.
- Ticker: ACIA
- Exchange: NasdaqGS
- Founded: 2009
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$2.837b
- Shares outstanding: 41.61m
- Website: https://acacia-inc.com
Number of Employees
- Acacia Communications, Inc.
- Three Mill and Main Place
- Suite 400
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ACIA||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||May 2016|
|17X||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 2016|
Acacia Communications, Inc. develops, manufactures, and sells high-speed coherent optical interconnect products in the United States, China, Germany, Thailand, and internationally. The company offers embedded and pluggable module products consisting of optical interconnect modules with transmission speeds ranging from 100 to 1,200 gigabits per second for use in long-haul, metro, and inter-data center markets. It also provides semiconductor products, such as low-power coherent digital signal processor application-specific integrated circuits and silicon photonic integrated circuits that are integrated into embedded and pluggable modules. The company sells its products through a direct sales force to network equipment manufacturers, network operators, and cloud service providers. Acacia Communications, Inc. was founded in 2009 and is headquartered in Maynard, Massachusetts.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/28 02:07|
|End of Day Share Price||2020/02/27 00:00|
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.