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ACTG Acacia Research Corporation - Fundamental Analysis

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ACTG Stock | Fundamental Analysis & Investment Insights
NASDAQ Industrials Business Equipment & Supplies
Current Price Live
$4.16
Analyst Target
$5.0
+20.2% Upside
52W High
$4.29
52W Low
$2.7

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Confidence Score
85%
Analysis Accuracy
ACTG's Piotroski F-Score of 4/9 indicates weak financial health, falling short of the stable threshold, while the absence of an Altman Z-Score raises concerns about default risk. The stock trades at a high P/E of 69.33 despite negative operating margins (-10.81%) and inconsistent earnings, with a Graham Number of $2.74 suggesting significant downside. Although revenue growth is explosive at 155% YoY, this is not translating into sustainable profitability, and the company has a history of massive earnings surprises—both positive and negative—indicating extreme volatility. The lack of analyst coverage and neutral insider activity further reduce conviction.

Key Strengths

155.00% YoY revenue growth indicates strong top-line expansion
Extremely high earnings surprises (e.g., +780%, +797%) suggest potential for upside catalysts
Low debt/equity ratio of 0.18 implies conservative capital structure
High current and quick ratios (8.63 and 7.70) signal strong short-term liquidity
Graham Number of $2.74 provides a defensive floor for valuation

Key Risks

Piotroski F-Score of 4/9 indicates weak financial health and operational instability
Negative operating margin (-10.81%) and inconsistent earnings undermine profitability
Forward P/E of -7.85 implies no earnings forecast, signaling uncertainty
Intrinsic value estimate of $0.42 is far below current price of $4.16, indicating severe overvaluation
Historical earnings volatility with extreme negative surprises (e.g., -2300%) raises red flags for reliability
AI Fair Value Estimate
Based on comprehensive analysis
$2.74
-34.1% below current price

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Sector Comparison & Peer Analysis

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