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Acacia Research Corp. (ACTG)
NASDAQ:ACTG
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Acacia Research
(NASDAQ:ACTG)
47Neutral
Acacia Research (ACTG) vs. S&P 500 (SPY)
Market Cap
$281.53M
Dividend YieldN/A
Average Volume (3M)370.66K
Price to Earnings (P/E)7.7
Beta (1Y)0.99
Revenue Growth-2.23%
EPS Growth-180.29%
CountryUS
Employees1,036
SectorIndustrials
Sector Strength66
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.36
Shares Outstanding96,086,040
10 Day Avg. Volume366,406
30 Day Avg. Volume370,660
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.69
Price to Cash Flow (P/CF)-4.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside101.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Acacia Research Business Overview & Revenue Model
Company DescriptionAcacia Research Corporation (ACTG) is a publicly traded company that specializes in intellectual property (IP) investment, development, and monetization. The company operates in sectors including technology, healthcare, and energy, leveraging its expertise in managing and licensing patent portfolios to generate value. Acacia Research invests in these sectors by acquiring patent rights and partnering with inventors and patent owners to unlock the potential of their innovations.
How the Company Makes MoneyAcacia Research makes money primarily through the acquisition, licensing, and enforcement of intellectual property rights. The company acquires patent portfolios and then seeks to monetize these assets by licensing them to third parties or through litigation and settlements when necessary. Revenue is generated when license agreements are reached or through successful legal actions that result in settlements or court-awarded damages. Additionally, Acacia often partners with inventors or patent holders, sharing revenues generated from licensing and enforcement activities. The company may also engage in strategic partnerships or joint ventures that enhance its ability to monetize its IP assets.
Acacia Research Financial Statement Overview
Summary
Acacia Research shows strong cost management and cash flow improvement but faces significant profitability challenges, with negative net margins and declining equity ratio. The balance sheet is robust with low leverage, yet operational margins are under pressure.Income Statement
The company's income statement reveals fluctuating revenue with a recent decline from $125M to $122M. Gross profit margin improved significantly from 57.8% to 79.9% in the latest year, indicating better cost management. However, the net profit margin has turned negative, moving from 53.6% to -29.5%, due to a significant decline in net income. EBIT and EBITDA margins also turned negative, highlighting operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position with an increase in stockholders' equity from $568M to $515M. The debt-to-equity ratio is low at 0.013, indicating limited leverage, which is positive. However, the equity ratio decreased from 89.7% to 68.1%, reflecting an increase in liabilities. The return on equity has turned negative, reflecting recent income challenges.60
Neutral
Cash Flow
Operating cash flow improved from negative to $50M, showing better cash generation. However, free cash flow remains negative at -$98M due to high capital expenditures. The free cash flow to net income ratio is unfavorable, indicating cash generation issues relative to earnings. The operating cash flow to net income ratio is strong, suggesting better operational cash efficiency despite negative net income.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 122.31M | 125.10M | 59.22M | 88.05M | 29.78M |
| Gross Profit | ||||
| 97.76M | 72.27M | 21.84M | 51.95M | 4.96M |
| EBIT | ||||
| -32.93M | 20.94M | -5.63M | 7.89M | -19.52M |
| EBITDA | ||||
| -32.93M | 84.33M | -107.20M | 25.23M | -14.72M |
| Net Income Common Stockholders | ||||
| -36.06M | 67.06M | -110.94M | 149.20M | 109.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 273.88M | 439.91M | 386.14M | 707.47M | 451.33M |
| Total Assets | ||||
| 756.39M | 633.54M | 482.93M | 798.86M | 515.52M |
| Total Debt | ||||
| 6.78M | 13.51M | 62.32M | 183.28M | 116.61M |
| Net Debt | ||||
| -267.10M | -326.58M | -225.46M | -125.67M | -48.93M |
| Total Liabilities | ||||
| 203.78M | 43.94M | 213.61M | 368.38M | 222.99M |
| Stockholders Equity | ||||
| 514.83M | 568.27M | 258.28M | 419.43M | 281.49M |
| Cash Flow | Free Cash Flow | |||
| -98.55M | -28.70M | -43.07M | -7.76M | -33.60M |
| Operating Cash Flow | ||||
| 50.12M | -22.51M | -37.34M | 13.33M | -19.62M |
| Investing Cash Flow | ||||
| -212.96M | 16.18M | 184.46M | 35.75M | 18.60M |
| Financing Cash Flow | ||||
| 97.56M | 58.63M | -166.14M | 59.74M | 109.21M |
Acacia Research Technical Analysis
Negative
2.98
Price Trends
3.62
Negative
4.00
Negative
4.40
Negative
Market Momentum
-0.19
Negative
37.44
Neutral
53.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACTG, the sentiment is Negative. The current price of 2.98 is below the 20-day moving average (MA) of 3.06, below the 50-day MA of 3.62, and below the 200-day MA of 4.40, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 37.44 is Neutral, neither overbought nor oversold. The STOCH value of 53.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACTG.
Acacia Research Risk Analysis
Acacia Research disclosed 63 risk factors in its most recent earnings report. Acacia Research reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Acacia Research Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $4.14B | 11.23 | 5.47% | 215.40% | 4.10% | -8.63% | |
51 Neutral | $27.81M | ― | -6.39% | 8.26% | -96.16% | -113.96% | |
47 Neutral | $281.53M | 7.73 | -6.66% | ― | -2.23% | -180.29% | |
43 Neutral | $29.18M | ― | -69.29% | ― | -31.08% | 56.20% | |
41 Neutral | $13.31M | ― | ― | -4.37% | ― |
* Industrials Sector Average
Performance Comparison
ACTG
Acacia Research
2.98
-1.91
-39.06%
OMEX
Odyssey Marine Exploration
0.42
-3.22
-88.46%
NTIP
Network-1 Technologies
1.22
-0.58
-32.22%
SST
System1
0.32
-1.47
-82.12%
Acacia Research Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -29.38% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The call highlights successful acquisitions and strong cash management which contribute positively to the company's outlook. However, challenges in the intellectual property segment and increased operating costs present notable concerns. The sentiment is balanced with both positive strategic achievements and significant financial challenges.Highlights
Successful Acquisitions and Integration
Acacia successfully acquired and integrated the Revolution Asset Package and Deflecto, demonstrating effective navigation of the macro environment and enhancing their portfolio with significant operational and strategic optionality.
Strong Cash Position
As of year-end 2024, Acacia had approximately $274 million of cash to deploy, with a strong balance sheet enabling continued opportunistic investments.
Energy Segment Performance
Benchmark's highest ever revenue was reported this quarter, aided by the completion of over 40 capital work over projects and an effective hedging strategy protecting approximately 70% of operated net oil and gas production.
Stock Buyback
Acacia repurchased $20 million of stock at an average price of $4.61 per share, which was below the year-end book value of $5.75 per share, representing a strategic use of shareholder capital.
Lowlights
Intellectual Property Operations Decline
Intellectual property operations generated only $0.1 million in licensing and other revenue during the quarter, compared to $82.8 million in the same quarter last year, due to a decrease in new license agreements.
Increased Operating Costs and Net Loss
The amortization of patents and costs associated with acquiring Deflecto led to increased GAAP operating costs, resulting in a net loss of $13.4 million for the quarter.
General and Administrative Expenses Increase
G&A expenses increased to $21.5 million during the fourth quarter, up from $10.8 million in the same quarter last year, primarily due to new manufacturing operations and one-time acquisition-related charges.
Company Guidance
During Acacia Research's fourth quarter and year-end 2024 earnings call, key financial metrics were discussed highlighting the company's financial performance and strategic growth initiatives. For the fourth quarter, Acacia reported consolidated revenue of $48.8 million, with a total company adjusted EBITDA of $4.9 million and an operated segment adjusted EBITDA of $9.6 million. Excluding intellectual property operations, which have episodic cash flows, the operated segment adjusted EBITDA was $12.4 million. For the full year, Acacia generated consolidated revenue of $122.3 million, total company adjusted EBITDA of $17 million, and operated segment adjusted EBITDA of $35.7 million, with a figure of $32.2 million excluding intellectual property operations. The company also noted cash reserves of approximately $274 million available for deployment. During the year, Acacia completed significant acquisitions, including the Revolution Asset Package with Benchmark Energy and Deflecto, leading to strategic optimization and integration efforts. Additionally, the company repurchased $20 million in stock, reflecting confidence in their strategy and operations.Acacia Research Corporate Events
M&A Transactions
Acacia Research Expands Portfolio with Deflecto Acquisition
Positive
Oct 21, 2024
Acacia Research Corporation has acquired Deflecto Acquisition, Inc. for $103.7 million, expanding its portfolio with a leading manufacturer of essential products in commercial transportation, HVAC, and office markets. The transaction is expected to significantly boost revenue and be accretive to free cash flow. Deflecto, headquartered in Indianapolis, is projected to generate $128-$136 million in revenue for 2024, and will continue to be led by its current management team. The acquisition is funded through cash and a new secured credit facility.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.