Latest Ratios: P/E Ratio -23.2x · EV/EBITDA 28.3x · ROE 3.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $411M | $363M | $431M | $362M | $385M | $505M | $226M | $135M | $149M | $205M | $325M |
| Enterprise Value | $208M | $161M | $281M | $36M | $161M | $380M | $178M | $80M | $54M | $69M | $198M |
| P/E Ratio → | -23.25 | 17.00 | — | 6.76 | — | 2.69 | 2.66 | — | — | 9.20 | — |
| P/S Ratio | 1.50 | 1.27 | 3.52 | 2.90 | 6.51 | 5.74 | 7.60 | 12.04 | 1.13 | 3.14 | 2.13 |
| P/B Ratio | 0.71 | 0.62 | 0.78 | 0.61 | 1.43 | 1.17 | 0.78 | 0.77 | 0.77 | 0.69 | 1.21 |
| P/FCF | 44.76 | 6.21 | — | — | — | — | — | — | 7.14 | 8.39 | 9.91 |
| P/OCF | 5.46 | 4.83 | 8.59 | — | — | 37.91 | — | — | 7.13 | 8.39 | 9.56 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.57 | 2.30 | 0.29 | 2.73 | 4.32 | 5.98 | 7.09 | 0.41 | 1.05 | 1.30 |
| EV / EBITDA | 28.25 | 3.24 | 433.70 | 1.00 | — | 15.08 | — | — | 23.03 | — | — |
| EV / EBIT | 32.53 | 4.00 | — | 0.51 | — | 2.08 | 1.51 | — | 15.26 | — | — |
| EV / FCF | — | 2.76 | — | — | — | — | — | — | 2.58 | 2.81 | 6.03 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 82.5% | 82.5% | 24.2% | 57.8% | 36.9% | 59.0% | 16.6% | -62.6% | 18.9% | 3.4% | 27.1% |
| Operating Margin | 2.2% | 2.2% | -26.9% | 16.7% | -67.7% | 16.5% | -65.5% | -208.2% | -18.9% | -41.7% | -24.5% |
| Net Profit Margin | 7.6% | 7.6% | -29.5% | 53.6% | -211.2% | 169.5% | 366.8% | -152.2% | -79.9% | 33.9% | -35.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.8% | 3.8% | -6.3% | 15.6% | -35.7% | 41.5% | 47.2% | -9.3% | -42.9% | 7.8% | -18.4% |
| ROA | 2.8% | 2.8% | -5.2% | 12.0% | -19.5% | 22.8% | 29.9% | -7.7% | -39.4% | 7.3% | -16.8% |
| ROIC | 1.2% | 1.2% | -7.4% | 10.2% | -17.1% | 4.0% | -8.1% | -16.2% | -14.4% | -13.5% | -17.3% |
| ROCE | 0.9% | 0.9% | -5.0% | 4.2% | -8.1% | 3.0% | -6.6% | -11.7% | -10.1% | -9.6% | -12.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.18 | 0.18 | 0.22 | 0.02 | 0.24 | 0.43 | 0.41 | 0.01 | 0.17 | — | — |
| Debt / EBITDA | 2.10 | 2.10 | 191.87 | 0.38 | — | 7.30 | — | — | 14.41 | — | — |
| Net Debt / Equity | — | -0.35 | -0.27 | -0.55 | -0.83 | -0.29 | -0.17 | -0.32 | -0.49 | -0.46 | -0.47 |
| Net Debt / EBITDA | -4.06 | -4.06 | -230.79 | -9.16 | — | -4.94 | — | — | -40.77 | — | — |
| Debt / FCF | — | -3.45 | — | — | — | — | — | — | -4.57 | -5.58 | -3.88 |
| Interest Coverage | 4.48 | 4.48 | -4.92 | 35.94 | -18.77 | 23.05 | 11.66 | — | — | — | — |
Net cash position: cash ($307M) exceeds total debt ($105M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 9.18 | 9.18 | 8.89 | 20.06 | 4.91 | 3.65 | 3.67 | 14.79 | 6.49 | 14.62 | 6.69 |
| Quick Ratio | 8.64 | 8.64 | 8.31 | 19.67 | 4.74 | 3.61 | 3.67 | 14.79 | 7.67 | 14.62 | 6.28 |
| Cash Ratio | 6.73 | 6.73 | 7.07 | 15.92 | 4.43 | 3.53 | 3.62 | 14.50 | 5.33 | 14.29 | 5.21 |
| Asset Turnover | — | 0.37 | 0.16 | 0.20 | 0.12 | 0.11 | 0.06 | 0.05 | 0.59 | 0.21 | 0.52 |
| Inventory Turnover | 1.88 | 1.88 | 3.37 | 4.84 | 2.63 | 4.04 | — | — | — | — | 9.67 |
| Days Sales Outstanding | — | 33.48 | 80.30 | 235.03 | 50.73 | 39.45 | 6.20 | 16.59 | 91.27 | 0.85 | 63.94 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | 0.4% | 0.7% | 0.3% | 0.6% | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | 5.9% | — | 14.8% | — | 37.2% | 37.6% | — | — | 10.9% | — |
| FCF Yield | 2.2% | 16.1% | — | — | — | — | — | — | 14.0% | 11.9% | 10.1% |
| Buyback Yield | 0.0% | 0.0% | 4.7% | 0.0% | 13.2% | 0.8% | 1.8% | 0.0% | 3.3% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 4.7% | 0.4% | 14.0% | 1.1% | 2.4% | 0.0% | 3.3% | 0.0% | 0.0% |
| Shares Outstanding | — | $97M | $99M | $92M | $92M | $98M | $57M | $51M | $50M | $51M | $50M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ACTG stock.
Acacia Research Corporation's current P/E ratio is -23.2x. The historical average is 19.9x.
Acacia Research Corporation's current EV/EBITDA is 28.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.9x.
Acacia Research Corporation's return on equity (ROE) is 3.8%. The historical average is -12.0%.
Based on historical data, Acacia Research Corporation is trading at a P/E of -23.2x. Compare with industry peers and growth rates for a complete picture.
Acacia Research Corporation has 82.5% gross margin and 2.2% operating margin.
Acacia Research Corporation's Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Structurally unprofitable core operations
Metrics are mathematically derived from official filings.
Low Multiples Reflect Episodic Earnings
Actg trades at a low EV/EBITDA of 4.79 and P/FCF of 7.52, yet the forward EV/EBITDA jumps to 10.64, suggesting current earnings and cash flow are based on non-recurring patent settlement proceeds rather than sustainable operations.
The valuation multiples present a classic distortion; the current P/E of 20.73 and P/B of 0.76 appear cheap, but the forward EV/EBITDA of 10.64 implies a significant earnings decline ahead. This disconnect is explained by the company's lumpy revenue model, where profitability in quarters like 2026Q2 (7.4% operating margin) is driven by specific licensing events, not ongoing operational performance. The market appears to be pricing the firm on a blended, cycle-adjusted basis, which depresses the current multiples relative to peers.
Margin Volatility Masks Cost Structure Flaws
Actg's gross margin swings wildly from 10.1% to 160.5% over ten quarters, while the operating margin is negative in 70% of periods, indicating that its fixed SG&A cost base is not covered by its highly variable, settlement-driven revenue stream.
The extreme volatility in gross margin, which reached 160.5% in 2025Q2, reflects the non-standard cost of revenue, likely including contingent legal fees that are expensed in uneven quarters. This volatility is insufficient to overcome the company's rigid SG&A expenses, which have consistently resulted in operating losses. The true earning power is masked by non-operating items, as evidenced by the 0.0% net margin in 2026Q2 despite positive operating income, suggesting reliance on investment or other non-core gains to report positive net income.
Negative ROIC Reflects Capital-Destructive Model
Based on reported financials, Actg's return on invested capital has been negative in 8 of the last 10 quarters, with a trailing figure of -1.7%, indicating the business does not currently generate returns sufficient to cover its cost of capital.
The negative ROIC trend underscores the fundamental challenge: the company's asset base generates episodic returns tied to settlements, not consistent operational profits. While there was a positive 7.0% ROIC in 2025Q1, it was immediately followed by negative quarters, showing no compounding ability. This pattern suggests that invested capital is being used to fund the legal and operational infrastructure for licensing campaigns whose returns are uncertain and infrequent, destroying value in most periods.
Working Capital Swings Dominate Efficiency Metrics
The cash conversion cycle was a lengthy 65 days in 2026Q2, but has varied from 64 to 287 days over the past ten quarters, with the volatility entirely driven by the unpredictable timing of settlement-related receivables and payables.
Efficiency metrics for Actg are not about operational management but about settlement logistics. The Days Sales Outstanding (DSO) of 52 days is misleading, as it can jump to 179 days (2024Q1) depending on when a large deal closes and is collected. Similarly, Days Inventory Outstanding is irrelevant for this business model, while Days Payable Outstanding swings reflect payments for contingent legal fees. The metrics provide no predictive insight into operational efficiency and are purely descriptive of the episodic cash flow cycle.
Modest Leverage Amid Earnings Volatility
According to recent SEC filings, Actg maintains a low debt-to-equity ratio of 0.18 and a comfortable interest coverage of 15.1x in 2026Q2, but this coverage was negative in 7 of the last 10 quarters, highlighting the risk to debt servicing during periods without settlement income.
The low leverage is a strategic positive, but the volatile interest coverage ratio is a key risk indicator. When coverage turns negative, as seen in most quarters, it confirms that core operations are not generating sufficient pre-tax income to service debt, placing full reliance on cash reserves. The company's financial health is therefore entirely dependent on maintaining its large cash position to bridge periods of operational losses and cover interest obligations.
The Misleading Power of Price-to-Free-Cash-Flow
The P/FCF ratio of 7.52 is the most commonly misapplied metric for Actg, as it treats highly episodic, settlement-timing-driven free cash flow as a sustainable earnings stream, severely underestimating the underlying structural unprofitability.
Investors focused on the low P/FCF multiple may be lured by apparent value, but this figure is dangerously misleading for Actg's business model. Free cash flow is driven by the lump-sum receipt of licensing settlements, which can swing from -48.2% to +93.5% margin. In any single quarter, FCF is not a measure of ongoing business health but of settlement collection timing. A more appropriate metric would be a valuation based on a full-cycle average of cash flow or earnings, which would reveal a far less attractive picture given the persistent operating losses.