ACTG
Acacia Research Corporation (ACTG) Economic Moat Analysis (2026)
Overall Score
Profitability Returns
Returns remain negative, with ROIC at -2.4% and ROE at -2.8%.
Operating margin is still below zero at -7.0%, despite gross margin holding at 61.2%.
Balance Sheet Strength
Liquidity remains very strong, with a current ratio of 4.76 and quick ratio of 4.51.
Leverage is low, with debt-to-equity at 0.19 and net debt to EBITDA at -3.88, indicating a net cash position.
Cash Flow Quality
Free cash flow remains positive, but the free cash flow margin is only 5.1% and FCF yield is 3.6%.
Cash conversion is acceptable, with operating cash flow covering capex 2.13x.
Valuation Support
Valuation remains undemanding on sales and EBITDA, with EV/sales at 0.84x and EV/EBITDA at 4.42x.
Price-to-book is below 1.0x at 0.84x, which supports downside protection.
Sources
- Company filings (10-K, 10-Q, investor presentations)
- Financial and market data providers
- Public news and industry information
🔒 Go Beyond This Framework
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