Acacia Beneish M Score

ACTG
 Stock
  

USD 3.98  0.11  2.69%   

This module uses fundamental data of Acacia Research to approximate the value of its Beneish M Score. Acacia Research M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to Acacia Research Piotroski F Score and Acacia Research Altman Z Score analysis.
  
Acacia Research Issuance Repayment of Debt Securities is projected to based on the last few years of reporting. The past year's Issuance Repayment of Debt Securities was at 65 Million. Acacia Research Receivables Turnover is projected to slightly decrease based on the last few years of reporting. The past year's Receivables Turnover was at 17.57. The current year Accounts Payable Turnover is expected to grow to 27.98, whereas Accrued Expenses Turnover is forecasted to decline to 16.29.
At this time, it appears that Acacia Research is an unlikely manipulator. The earnings manipulation may begin if Acacia Research's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Acacia Research executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Acacia Research's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.27
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.84Focus
Asset Quality1.0Focus
Expense Coverage0.72Focus
Gross Margin Strengs1.08Focus
Accruals Factor0.72Focus
Depreciation Resistance1.02Focus
Net Sales Growth1.3Focus
Financial Leverage Condition0.93Focus

Acacia Research Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Acacia Research's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense34.9 M37.2 M
Notably Down
Decreasing
Slightly volatile
Revenues114.8 M88 M
Significantly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables10.5 M9.5 M
Significantly Up
Increasing
Very volatile
Property Plant and Equipment Net6.7 M6.2 M
Significantly Up
Increasing
Slightly volatile
Operating Income15.7 M14.5 M
Significantly Up
Decreasing
Very volatile
Net Cash Flow from Operations20.1 M13.3 M
Way Up
Decreasing
Slightly volatile
Liabilities Non Current165.6 M153.4 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities216 M200.2 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities393.5 M364.7 M
Significantly Up
Increasing
Slightly volatile
Investments Non Current429 K418 K
Fairly Up
Increasing
Stable
Investments Current430 M398.5 M
Significantly Up
Increasing
Slightly volatile
Investments430.4 M398.9 M
Significantly Up
Increasing
Slightly volatile
Gross Margin63.6659.0014
Significantly Up
Decreasing
Very volatile
Depreciation Amortization and Accretion11 M10.7 M
Fairly Up
Decreasing
Slightly volatile
Debt Non Current1.9 MM
Significantly Down
Increasing
Slightly volatile
Debt Current181.3 M181.2 M
Slightly Up
Increasing
Slightly volatile
Total Debt154.6 M183.3 M
Fairly Down
Increasing
Slightly volatile
Assets Non Current98.6 M68.2 M
Way Up
Decreasing
Slightly volatile
Current Assets788.4 M730.7 M
Significantly Up
Increasing
Slightly volatile
Total Assets861.9 M798.9 M
Significantly Up
Increasing
Slightly volatile

Acacia Research Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Acacia Research's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Acacia Research in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Acacia Research's degree of accounting gimmicks and manipulations.

About Acacia Research Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

10.97 Million

Acacia Research Depreciation Amortization and Accretion is projected to decrease significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 10.69 Million

Acacia Research Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Acacia Research. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues65.4 M131.51 M11.25 M29.78 M88.05 M114.85 M
Total Assets308.77 M223.95 M218.16 M515.52 M798.86 M861.92 M
Current Assets139.69 M201.47 M171.76 M457.67 M730.68 M788.37 M
Assets Non Current169.07 M22.48 M44.9 M53.64 M68.17 M98.62 M
Total Liabilities14.47 M34.56 M36.95 M223.11 M364.67 M393.46 M
Current Liabilities9.56 M31.04 M11.71 M124.82 M200.19 M215.99 M
Operating Income(27.27 M)(24.81 M)(23.42 M)(19.52 M)14.54 M15.69 M
Investments106.95 M52.31 M147.48 M320.79 M398.95 M430.44 M
Gross Margin5.1918.9(62.62)16.6559.063.66

About Acacia Research Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Acacia Research's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Acacia Research using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Acacia Research based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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. Acacia Research Corporation was incorporated in 1993 and is based in New York, New York. Acacia Res-Acacia operates under Specialty Business Services classification in the United States and is traded on NASDAQ Exchange. It employs 287 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Acacia Research without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Acacia Research

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Acacia Research position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Acacia Research will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Acacia Research could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Acacia Research when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Acacia Research - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Acacia Research to buy it.
The correlation of Acacia Research is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Acacia Research moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Acacia Research moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Acacia Research can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Acacia Research Piotroski F Score and Acacia Research Altman Z Score analysis. You can also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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Is Acacia Research's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Acacia Research. If investors know Acacia will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Acacia Research listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.97) 
Market Capitalization
178.1 M
Quarterly Revenue Growth YOY
9.04
Return On Assets
0.0063
Return On Equity
0.37
The market value of Acacia Research is measured differently than its book value, which is the value of Acacia that is recorded on the company's balance sheet. Investors also form their own opinion of Acacia Research's value that differs from its market value or its book value, called intrinsic value, which is Acacia Research's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Acacia Research's market value can be influenced by many factors that don't directly affect Acacia Research's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Acacia Research's value and its price as these two are different measures arrived at by different means. Investors typically determine Acacia Research value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Acacia Research's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.