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Acacia Communications

Nasdaq:ACIA
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACIA
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Acacia Communications, Inc. develops, manufactures, and sells high-speed coherent optical interconnect products in the United States, China, Germany, Thailand, and internationally. The last earnings update was 21 days ago. More info.


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ACIA Share Price and Events
7 Day Returns
0.2%
NasdaqGS:ACIA
-4.4%
US Communications
0.9%
US Market
1 Year Returns
51.1%
NasdaqGS:ACIA
-1.6%
US Communications
15.5%
US Market
ACIA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Acacia Communications (ACIA) 0.2% 3.6% 5.4% 51.1% -10.4% -
US Communications -4.4% -2.5% -3.8% -1.6% 33.9% 48%
US Market 0.9% 4.7% 6.6% 15.5% 38.5% 44.2%
1 Year Return vs Industry and Market
  • ACIA outperformed the Communications industry which returned -1.6% over the past year.
  • ACIA outperformed the Market in United States of America which returned 15.5% over the past year.
Price Volatility
ACIA
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Acacia Communications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Acacia Communications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Acacia Communications.

NasdaqGS:ACIA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ACIA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.14 (1 + (1- 21%) (0.75%))
1.098
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.098 * 5.96%)
9.28%

Discounted Cash Flow Calculation for NasdaqGS:ACIA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Acacia Communications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:ACIA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.28%)
2020 93.14 Analyst x1 85.23
2021 101.22 Est @ 8.67% 84.76
2022 108.19 Est @ 6.89% 82.91
2023 114.30 Est @ 5.64% 80.16
2024 119.75 Est @ 4.77% 76.85
2025 124.73 Est @ 4.16% 73.25
2026 129.38 Est @ 3.73% 69.53
2027 133.81 Est @ 3.43% 65.81
2028 138.12 Est @ 3.22% 62.16
2029 142.37 Est @ 3.07% 58.64
Present value of next 10 years cash flows $739.00
NasdaqGS:ACIA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $142.37 × (1 + 2.73%) ÷ (9.28% – 2.73%)
$2,234.28
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,234.28 ÷ (1 + 9.28%)10
$920.23
NasdaqGS:ACIA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $739.00 + $920.23
$1,659.23
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,659.23 / 41.27
$40.21
NasdaqGS:ACIA Discount to Share Price
Calculation Result
Value per share (USD) From above. $40.21
Current discount Discount to share price of $67.12
= -1 x ($67.12 - $40.21) / $40.21
-66.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Acacia Communications is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Acacia Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Acacia Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ACIA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.72
NasdaqGS:ACIA Share Price ** NasdaqGS (2019-11-19) in USD $67.12
United States of America Communications Industry PE Ratio Median Figure of 27 Publicly-Listed Communications Companies 20.18x
United States of America Market PE Ratio Median Figure of 2,923 Publicly-Listed Companies 18.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Acacia Communications.

NasdaqGS:ACIA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ACIA Share Price ÷ EPS (both in USD)

= 67.12 ÷ 0.72

93.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Acacia Communications is overvalued based on earnings compared to the US Communications industry average.
  • Acacia Communications is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Acacia Communications's expected growth come at a high price?
Raw Data
NasdaqGS:ACIA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 93.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
36.1%per year
United States of America Communications Industry PEG Ratio Median Figure of 17 Publicly-Listed Communications Companies 1.75x
United States of America Market PEG Ratio Median Figure of 2,038 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NasdaqGS:ACIA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 93.6x ÷ 36.1%

2.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Acacia Communications is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Acacia Communications's assets?
Raw Data
NasdaqGS:ACIA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $13.43
NasdaqGS:ACIA Share Price * NasdaqGS (2019-11-19) in USD $67.12
United States of America Communications Industry PB Ratio Median Figure of 60 Publicly-Listed Communications Companies 1.88x
United States of America Market PB Ratio Median Figure of 5,088 Publicly-Listed Companies 1.75x
NasdaqGS:ACIA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ACIA Share Price ÷ Book Value per Share (both in USD)

= 67.12 ÷ 13.43

5x

* Primary Listing of Acacia Communications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Acacia Communications is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess Acacia Communications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Acacia Communications has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Acacia Communications expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
36.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Acacia Communications expected to grow at an attractive rate?
  • Acacia Communications's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Acacia Communications's earnings growth is expected to exceed the United States of America market average.
  • Acacia Communications's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ACIA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ACIA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 36.1%
NasdaqGS:ACIA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 14.7%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ACIA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ACIA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 821 1
2022-12-31 714 1
2021-12-31 652 95 3
2020-12-31 542 71 10
2019-12-31 463 65 6
2019-11-20
NasdaqGS:ACIA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 443 96 29
2019-06-30 418 99 22
2019-03-31 372 103 21
2018-12-31 340 83 5
2018-09-30 319 66 -25
2018-06-30 330 43 -14
2018-03-31 343 56 -6
2017-12-31 385 62 39
2017-09-30 441 80 113
2017-06-30 471 95 129
2017-03-31 509 104 128
2016-12-31 478 103 95

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Acacia Communications's earnings are expected to grow significantly at over 20% yearly.
  • Acacia Communications's revenue is expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ACIA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Acacia Communications Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ACIA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.14 2.14 2.14 1.00
2020-12-31 1.63 1.71 1.55 2.00
2019-12-31 1.53 1.53 1.53 1.00
2019-11-20
NasdaqGS:ACIA Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.72
2019-06-30 0.55
2019-03-31 0.52
2018-12-31 0.12
2018-09-30 -0.61
2018-06-30 -0.36
2018-03-31 -0.16
2017-12-31 0.99
2017-09-30 2.93
2017-06-30 3.43
2017-03-31 3.86
2016-12-31 3.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Acacia Communications is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Acacia Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Acacia Communications has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Acacia Communications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Acacia Communications's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Acacia Communications's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Acacia Communications has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Acacia Communications has become profitable in the last year making it difficult to compare the US Communications industry average.
Earnings and Revenue History
Acacia Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Acacia Communications Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ACIA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 443.12 29.15 71.60 117.50
2019-06-30 418.35 22.19 70.28 113.55
2019-03-31 372.17 20.97 53.36 108.91
2018-12-31 339.89 4.92 51.86 102.41
2018-09-30 319.36 -24.54 50.05 97.91
2018-06-30 329.55 -14.19 48.02 100.35
2018-03-31 343.44 -6.28 44.40 98.74
2017-12-31 385.17 38.51 38.81 92.03
2017-09-30 440.99 112.75 35.60 87.13
2017-06-30 471.30 129.14 33.03 78.91
2017-03-31 508.59 128.05 32.31 78.01
2016-12-31 478.41 95.28 27.68 75.70
2016-09-30 404.53 45.96 25.31 68.49
2016-06-30 334.65 12.69 20.77 59.18
2016-03-31 276.30 9.88 15.06 46.16
2015-12-31 239.06 7.60 13.12 38.65
2015-09-30 211.52 3.35 10.14 35.18
2015-06-30 192.88 2.96 8.77 32.85
2015-03-31 164.26 2.30 7.29 30.20
2014-12-31 146.23 1.73 6.62 28.47
2013-12-31 77.65 -4.97 5.10 24.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Acacia Communications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Acacia Communications used its assets less efficiently than the US Communications industry average last year based on Return on Assets.
  • Acacia Communications's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Acacia Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Acacia Communications has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Acacia Communications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Acacia Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Acacia Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Acacia Communications's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Acacia Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are -1.3163937268311E+17x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Acacia Communications Company Filings, last reported 1 month ago.

NasdaqGS:ACIA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 553.92 0.00 322.35
2019-06-30 529.55 0.00 318.14
2019-03-31 519.63 0.00 339.43
2018-12-31 502.73 0.00 325.10
2018-09-30 510.53 0.00 323.11
2018-06-30 505.93 0.00 303.42
2018-03-31 500.21 0.00 307.68
2017-12-31 502.05 0.00 279.43
2017-09-30 514.35 0.00 289.15
2017-06-30 488.98 0.00 282.42
2017-03-31 475.98 0.00 271.33
2016-12-31 434.80 0.00 310.41
2016-09-30 262.49 0.00 175.56
2016-06-30 221.28 0.00 159.01
2016-03-31 96.81 0.00 32.89
2015-12-31 82.05 0.00 27.61
2015-09-30 58.74 0.00 18.04
2015-06-30 49.25 0.00 16.02
2015-03-31 38.35 2.12 21.13
2014-12-31 38.35 2.12 21.13
2013-12-31 23.87 8.16 20.24
  • Acacia Communications's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (10.4% vs 0% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Acacia Communications has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Acacia Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Acacia Communications has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Acacia Communications's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Acacia Communications dividends. Estimated to be 0% next year.
If you bought $2,000 of Acacia Communications shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Acacia Communications's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Acacia Communications's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ACIA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 3.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1955 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ACIA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00
2019-11-20

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Acacia Communications has not reported any payouts.
  • Unable to verify if Acacia Communications's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Acacia Communications's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Acacia Communications has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Acacia Communications's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Acacia Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Acacia Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Acacia Communications has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Acacia Communications's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Raj Shanmugaraj
COMPENSATION $2,563,596
AGE 61
TENURE AS CEO 9.6 years
CEO Bio

Mr. Shanmugaraj Shanmugaraj, also known as Raj, has been the Chief Executive Officer and President at Acacia Communications, Inc. since April 2010. Mr. Shanmugaraj has more than 25 years in telecom and communications to Acacia Communications including tenures as Vice President of Systems Products at PictureTel and Vice President of Engineering at MultiLink (which was acquired by PictureTel). He served as Corporate Vice President of Alcatel-Lucent, responsible for business development in a variety of market segments in the Americas Region - including Optical Core Convergence. He served as Alcatel-Lucent Vice President of Optics, heading up the business development and marketing activities in the Americas Region. He served as President and Chief Executive Officer of Alcatel Communications, Inc. He has been a Director of at Acacia Communications Inc since April 2010. He was a Founder of Astral Point Communications and served as its Chief Executive Officer, which was acquired by Alcatel in 2002. He served senior executive level positions at Motorola. He served as Director at Motorola Codex. He holds an M.S. in Electrical and Computer Engineering from the University of Iowa and a B.E. in Electronics and Communications from the National Institute of Technology, Trichy in India.

CEO Compensation
  • Raj's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Raj's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Acacia Communications management team in years:

4.5
Average Tenure
56
Average Age
  • The tenure for the Acacia Communications management team is about average.
Management Team

Raj Shanmugaraj

TITLE
President
COMPENSATION
$3M
AGE
61
TENURE
9.6 yrs

Benny Mikkelsen

TITLE
Co-Founder
COMPENSATION
$2M
AGE
59
TENURE
10.8 yrs

Mehrdad Givehchi

TITLE
Co-Founder and VP of Hardware & Software
COMPENSATION
$2M
AGE
53
TENURE
4.4 yrs

John Gavin

TITLE
CFO & Treasurer
COMPENSATION
$2M
AGE
60
TENURE
7.8 yrs

Eric Fisher

TITLE
Vice President of Global Sales
COMPENSATION
$2M
AGE
47
TENURE
2.3 yrs

Christian Rasmussen

TITLE
Co-Founder and VP of Digital Signal Processing & Optics
COMPENSATION
$2M
AGE
50
TENURE
4.4 yrs

John Kavanagh

TITLE
Senior Vice President of Operations
AGE
56
TENURE
4.5 yrs

Fran Murphy

TITLE
VP of Finance

Janene Asgeirsson

TITLE
Chief Legal Officer & Secretary
AGE
49
TENURE
4.6 yrs

John LoMedico

TITLE
Vice President of Corporate Development
AGE
61
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Acacia Communications board of directors in years:

5.6
Average Tenure
56
Average Age
  • The tenure for the Acacia Communications board of directors is about average.
Board of Directors

Vince Roche

TITLE
Chairman of the Board
COMPENSATION
$266K
AGE
59
TENURE
2.5 yrs

Raj Shanmugaraj

TITLE
President
COMPENSATION
$3M
AGE
61
TENURE
9.6 yrs

Benny Mikkelsen

TITLE
Co-Founder
COMPENSATION
$2M
AGE
59
TENURE
10.4 yrs

Peter Chung

TITLE
Independent Director
COMPENSATION
$256K
AGE
51
TENURE
6.6 yrs

John Ritchie

TITLE
Independent Director
COMPENSATION
$255K
AGE
53
TENURE
4.6 yrs

Stan Reiss

TITLE
Independent Director
COMPENSATION
$249K
AGE
47
TENURE
10.3 yrs

Dave Aldrich

TITLE
Independent Director
COMPENSATION
$242K
AGE
62
TENURE
2.2 yrs

Laurinda Pang

TITLE
Independent Director
AGE
49
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • Acacia Communications individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. Oct 19 Sell Francis Murphy Individual 22. Oct 19 22. Oct 19 -559 $64.89 $-36,274
04. Oct 19 Sell Francis Murphy Individual 02. Oct 19 02. Oct 19 -2,671 $64.64 $-172,653
20. Sep 19 Sell Francis Murphy Individual 18. Sep 19 18. Sep 19 -102 $64.62 $-6,591
05. Sep 19 Sell Francis Murphy Individual 03. Sep 19 03. Sep 19 -141 $62.91 $-8,870
25. Jul 19 Buy Magnetar Capital, LLC Company 04. Jun 19 17. Jul 19 2,454,342 $65.79 $159,582,328
04. Sep 19 Sell Magnetar Capital, LLC Company 25. Jul 19 03. Sep 19 -216,147 $67.25 $-13,855,019
04. Sep 19 Buy Magnetar Capital, LLC Company 01. Aug 19 30. Aug 19 44,846 $66.10 $2,836,117
16. Aug 19 Sell Murugesan Shanmugaraj Individual 14. Aug 19 14. Aug 19 -2,736 $64.41 $-176,223
16. Aug 19 Sell Bhupendra Shah Individual 14. Aug 19 14. Aug 19 -1,161 $64.41 $-74,779
16. Aug 19 Sell Mehrdad Givehchi Individual 14. Aug 19 14. Aug 19 -2,736 $64.41 $-176,223
16. Aug 19 Sell Christian Rasmussen Individual 14. Aug 19 14. Aug 19 -3,389 $64.41 $-218,282
16. Aug 19 Sell Benny Mikkelsen Individual 14. Aug 19 14. Aug 19 -2,736 $64.41 $-176,223
16. Aug 19 Sell John Gavin Individual 14. Aug 19 14. Aug 19 -829 $64.41 $-53,395
12. Aug 19 Sell Francis Murphy Individual 09. Aug 19 09. Aug 19 -4,090 $63.66 $-260,381
24. Jul 19 Sell Francis Murphy Individual 22. Jul 19 22. Jul 19 -559 $64.90 $-36,279
10. Jul 19 Sell Eric Fisher Individual 08. Jul 19 08. Jul 19 -2,839 $47.73 $-135,505
03. Jul 19 Sell Francis Murphy Individual 02. Jul 19 02. Jul 19 -391 $50.43 $-19,718
03. Jul 19 Sell Mehrdad Givehchi Individual 02. Jul 19 02. Jul 19 -10,500 $50.38 $-519,987
20. Jun 19 Sell Francis Murphy Individual 18. Jun 19 18. Jun 19 -75 $45.04 $-3,378
05. Jun 19 Sell Francis Murphy Individual 03. Jun 19 03. Jun 19 -113 $46.29 $-5,231
15. May 19 Sell Bhupendra Shah Individual 13. May 19 14. May 19 -7,049 $52.38 $-368,556
15. May 19 Sell Christian Rasmussen Individual 13. May 19 14. May 19 -10,663 $52.38 $-556,572
15. May 19 Sell Benny Mikkelsen Individual 13. May 19 14. May 19 -8,617 $52.38 $-449,778
15. May 19 Sell Murugesan Shanmugaraj Individual 13. May 19 14. May 19 -9,796 $52.38 $-511,534
15. May 19 Sell Mehrdad Givehchi Individual 13. May 19 14. May 19 -8,618 $52.38 $-449,830
15. May 19 Sell John Gavin Individual 13. May 19 14. May 19 -6,719 $52.37 $-351,403
22. Apr 19 Sell Francis Murphy Individual 22. Apr 19 22. Apr 19 -514 $57.80 $-29,709
04. Apr 19 Sell Francis Murphy Individual 02. Apr 19 02. Apr 19 -370 $58.65 $-21,701
21. Mar 19 Sell Murugesan Shanmugaraj Individual 19. Mar 19 19. Mar 19 -4,544 $56.05 $-254,691
21. Mar 19 Sell Bhupendra Shah Individual 19. Mar 19 19. Mar 19 -2,413 $56.05 $-135,249
21. Mar 19 Sell Christian Rasmussen Individual 19. Mar 19 19. Mar 19 -3,042 $56.05 $-170,504
21. Mar 19 Sell Benny Mikkelsen Individual 19. Mar 19 19. Mar 19 -2,413 $56.05 $-135,249
21. Mar 19 Sell Mehrdad Givehchi Individual 19. Mar 19 19. Mar 19 -1,629 $56.05 $-91,305
21. Mar 19 Sell John Gavin Individual 19. Mar 19 19. Mar 19 -2,413 $56.05 $-135,249
21. Mar 19 Sell Francis Murphy Individual 19. Mar 19 19. Mar 19 -64 $56.05 $-3,587
15. Mar 19 Sell Stan Reiss Individual 14. Mar 19 14. Mar 19 -30,000 $53.67 $-1,605,224
08. Mar 19 Sell Kurt Steinkrauss Individual 06. Mar 19 06. Mar 19 -1,300 $53.85 $-70,002
06. Mar 19 Sell Francis Murphy Individual 04. Mar 19 04. Mar 19 -503 $54.50 $-27,414
28. Feb 19 Sell Summit Partners, L.P. Company 26. Feb 19 26. Feb 19 -1,300,127 $52.25 $-67,931,636
28. Feb 19 Sell Francis Murphy Individual 26. Feb 19 26. Feb 19 -1,434 $55.11 $-79,024
19. Feb 19 Sell Murugesan Shanmugaraj Individual 14. Feb 19 14. Feb 19 -2,669 $43.38 $-115,781
19. Feb 19 Sell Bhupendra Shah Individual 14. Feb 19 14. Feb 19 -1,100 $43.38 $-47,718
19. Feb 19 Sell Christian Rasmussen Individual 14. Feb 19 14. Feb 19 -3,379 $43.38 $-146,581
19. Feb 19 Sell Benny Mikkelsen Individual 14. Feb 19 14. Feb 19 -1,810 $43.38 $-78,518
19. Feb 19 Sell Mehrdad Givehchi Individual 14. Feb 19 14. Feb 19 -2,672 $43.38 $-115,911
19. Feb 19 Sell John Gavin Individual 14. Feb 19 14. Feb 19 -770 $43.38 $-33,403
06. Feb 19 Sell Bhupendra Shah Individual 04. Feb 19 04. Feb 19 -2,609 $42.34 $-110,465
06. Feb 19 Sell Christian Rasmussen Individual 04. Feb 19 04. Feb 19 -3,158 $42.34 $-133,710
06. Feb 19 Sell Murugesan Shanmugaraj Individual 04. Feb 19 04. Feb 19 -4,132 $42.34 $-174,949
06. Feb 19 Sell Benny Mikkelsen Individual 04. Feb 19 04. Feb 19 -1,807 $42.34 $-76,508
06. Feb 19 Sell Mehrdad Givehchi Individual 04. Feb 19 04. Feb 19 -1,808 $42.34 $-76,551
06. Feb 19 Sell John Gavin Individual 04. Feb 19 04. Feb 19 -2,752 $42.34 $-116,520
25. Jan 19 Sell Francis Murphy Individual 23. Jan 19 23. Jan 19 -583 $41.41 $-24,142
10. Jan 19 Sell Bhupendra Shah Individual 09. Jan 19 09. Jan 19 -11,125 $41.98 $-467,030
04. Jan 19 Sell Francis Murphy Individual 03. Jan 19 03. Jan 19 -329 $37.74 $-12,416
19. Dec 18 Sell Francis Murphy Individual 18. Dec 18 18. Dec 18 -68 $40.16 $-2,731
07. Dec 18 Sell Francis Murphy Individual 03. Dec 18 03. Dec 18 -377 $44.32 $-16,709
X
Management checks
We assess Acacia Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Acacia Communications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Acacia Communications, Inc.'s (NASDAQ:ACIA) CEO Pay Matter?

See our latest analysis for Acacia Communications How Does Raj Shanmugaraj's Compensation Compare With Similar Sized Companies? … A first glance this seems like a real positive for shareholders, since Raj Shanmugaraj is paid less than the average total compensation paid by similar sized companies. … The compensation paid to Raj Shanmugaraj is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years).

Simply Wall St -

Acacia Communications, Inc. (NASDAQ:ACIA) Delivered A Weaker ROE Than Its Industry

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Acacia Communications: 4.0% = US$21m ÷ US$520m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Acacia Communications Have A Good Return On Equity? … Combining Acacia Communications's Debt And Its 4.0% Return On Equity Shareholders will be pleased to learn that Acacia Communications has not one iota of net debt!

Simply Wall St -

Acacia Communications, Inc. (NASDAQ:ACIA) Might Not Be A Great Investment

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Acacia Communications: 0.019 = US$11m ÷ (US$643m - US$94m) (Based on the trailing twelve months to March 2019.) Therefore, Acacia Communications has an ROCE of 1.9%. … Do Acacia Communications's Current Liabilities Skew Its ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

What Kind Of Shareholder Appears On The Acacia Communications, Inc.'s (NASDAQ:ACIA) Shareholder Register?

The big shareholder groups in Acacia Communications, Inc. … See our latest analysis for Acacia Communications NasdaqGS:ACIA Ownership Summary, May 10th 2019 What Does The Institutional Ownership Tell Us About Acacia Communications? … Insider Ownership Of Acacia Communications While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

If You Had Bought Acacia Communications (NASDAQ:ACIA) Stock A Year Ago, You Could Pocket A 111% Gain Today

Note that businesses generally develop over the long term, so it the returns over the last year might not reflect a long term trend. … While Acacia Communications made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. … Acacia Communications actually shrunk its revenue over the last year, with a reduction of 12%.

Simply Wall St -

What Type Of Shareholder Owns Acacia Communications, Inc.'s (NASDAQ:ACIA)?

So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Acacia Communications has a market capitalization of US$2.4b, so we would expect some institutional investors to have noticed the stock. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Is Acacia Communications, Inc.'s (NASDAQ:ACIA) Balance Sheet A Threat To Its Future?

(NASDAQ:ACIA), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … However, the trade-off is ACIA will have to follow strict debt obligations which will reduce its financial flexibility. … Is ACIA right in choosing financial flexibility over lower cost of capital

Simply Wall St -

Who Has Been Selling Acacia Communications, Inc. (NASDAQ:ACIA) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Acacia Communications, Inc. … Acacia Communications Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Acacia Communications shares, than buying

Simply Wall St -

Does The Acacia Communications, Inc. (NASDAQ:ACIA) Share Price Tend To Follow The Market?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Do Insiders Own Lots Of Shares In Acacia Communications Inc (NASDAQ:ACIA)?

Every investor in Acacia Communications Inc (NASDAQ:ACIA) should be aware of the most powerful shareholder groups. … With a market capitalization of US$1.8b, Acacia Communications is a decent size, so it is probably on the radar of institutional investors. … View our latest analysis for Acacia Communications

Simply Wall St -

Company Info

Description

Acacia Communications, Inc. develops, manufactures, and sells high-speed coherent optical interconnect products in the United States, China, Germany, Thailand, and internationally. The company offers embedded and pluggable module products consisting of optical interconnect modules with transmission speeds ranging from 100 to 1,200 gigabits per second for use in long-haul, metro, and inter-data center markets. It also provides semiconductor products, such as low-power coherent digital signal processor application-specific integrated circuits and silicon photonic integrated circuits that are integrated into embedded and pluggable modules. The company sells its products through a direct sales force to network equipment manufacturers, network operators, and cloud service providers. Acacia Communications, Inc. was founded in 2009 and is headquartered in Maynard, Massachusetts.

Details
Name: Acacia Communications, Inc.
ACIA
Exchange: NasdaqGS
Founded: 2009
$2,769,929,437
41,268,317
Website: http://www.acacia-inc.com
Address: Acacia Communications, Inc.
Three Mill and Main Place,
Suite 400,
Maynard,
Massachusetts, 01754,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ACIA Common Stock Nasdaq Global Select US USD 13. May 2016
DB 17X Common Stock Deutsche Boerse AG DE EUR 13. May 2016
Number of employees
Current staff
Staff numbers
389
Acacia Communications employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/20 00:54
End of day share price update: 2019/11/19 00:00
Last estimates confirmation: 2019/11/06
Last earnings filing: 2019/10/30
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.