Fundamental analysis: Acacia Research Corporation (ACTG)

Awarener score: 8.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (could not be estimated), the business stability (Bottom) and growth (Superb), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

Business has been growing at an extremely fast pace. It's been great when measured against peer companies.
Acacia Research Corporation business varies wildly, ups and downs could be very frequent. It's very risky. It looks worse than most rivals.

Margins score: 7.3

ACTG profit margins -on goods and services sold- are usually extremely poor. They stand worse than most rival companies.
Business profit on sales tends to be meagre. It's substantially worse when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain impressive in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still top-notch against similar companies.
Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
Total net profit tends to be excellent when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 1.0

Acacia Research Corporation couldn't always profit -on goods and services sold- in the past years. It's been a disappointment compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 9.0

ACTG had hardly to pay income taxes in relation to profits made in the past years. It's been well ranked against peers.
Research and development expenses hardly consume a portion of revenues. It's similar to competitors.
The company shows excellent business growth in relation to research and development efforts. It stands close to average when compared to rival companies.

Profitability score: 4.0

Acacia Research Corporation usually gets low returns on the resources it controls. It proves weak when measured against peer firms.
The company normally gets low proceeds -on the resources directly invested in the business-. They remain in a weak position compared to similar companies.
Profitability -in relation to owned resources- is usually lacking. It ranks below average when measured against competitors.
In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's weak when measured against comparable enterprises.

Usage of Funds score: 3.8

ACTG on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands weak when measured against rival firms.
The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is great when measured against industry peers.
In the past twelve months it paid somewhat low dividends, considering the current stock price. It came slightly worse than competitors.
Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved in good shape compared to similar firms.
The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a disappointment compared to rivals.
The company generates very few genuine funds. Investor rewards must be paid burning existing cash or by borrowing money, which isn't sustainable in the long run. Unless business prospects improve greatly, stockholder compensation could be at risk. It still looks last-in-rank when measured against competitors.

Balance Sheet score: 6.2

Acacia Research Corporation intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be more than average in relation to peer companies.
The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be impressive in relation to similar firms.
A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains better than most rival firms.
A substantial portion of resources controlled are already cash or short-term investments, which is better for liquidity. It looks top tier when measured against rivals.
For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's excellent in relation to peer firms.
For every dollar of short-term obligations, the company has more than enough dollars in cash and equivalents, which is top-notch against similar enterprises.
Usually, sales are on a two-months credit. It still ranks similar to peers.
Normally has approximately five months of sales worth in inventory. It comes up as a disappointment compared to competitors.
On average, it takes higher than six months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers longer than two months after the purchase. It ranks more than average in relation to industry peers.
The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's a disappointment compared to similar companies.
Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands better than most rival firms.
Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks great when measured against comparable enterprises.
Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks a slight improvement compared to similar firms.
Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 5.0

Acacia Research Corporation reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in good shape compared to peers.
There is insufficient information on the genuine funds generation capability showed in the past twelve months, which stands as an incognita in relation to similar companies.
Unfortunately, lack of enough yearly data impaired our ability to estimate the normal earnings power. It's still an unknown variable to measure against industry firms.
In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
We are unsure on the relationship between net financial position and market capitalization of the stock. It looks we will not be able to reach a conclusion regarding similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains well ranked against peer firms.
We could not gauge an alternative metric of earnings power of the past twelve months. It happens to be an interesting metric to relate to industry peers.
An alternate metric on the usual genuine-funds generation ability could not be provided. It's still unknown against peer companies.

Total score: 5.2

Company at a glance: Acacia Research Corporation (ACTG)

Sector, industry: Industrials, Specialty Business Services

Market Cap: 0.25 billions

Revenues TTM: 0.06 billions

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. The company operates through two segments, Intellectual Property Operations and Industrial Operations. 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 1,600 license agreements, and approximately 200 patent portfolio licensing and enforcement programs. It also designs manufactures printers and parts, and consumable products through dealers and distributors for various industrial printing applications. In addition, the company offers supply-chain printing solutions for manufacturing, transportation and logistics, retail distribution, food and beverage distribution, and pharmaceutical distribution industries; and line matrix printers for mission critical applications within labeling and inventory management, build sheets, invoicing, manifests and bills of lading, and reporting industries. Acacia Research Corporation was incorporated in 1993 and is based in New York, New York.