Acorn Energy (ACFN) AI Stock Analysis

• Market Cap: $37.14M
• Dividend Yield: N/A
• Average Volume (3M): 20.37K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.63
• Revenue Growth: 30.11%
• EPS Growth: 481.67%
• Country: US
• Employees: 25
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.10
• Shares Outstanding: 2,504,626
• 10 Day Avg. Volume: 16,997
• 30 Day Avg. Volume: 20,368
• PEG Ratio: <0.01
• Price to Book (P/B): 8.03
• Price to Sales (P/S): 4.05
• P/FCF Ratio: 52.41
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 3.23
• Enterprise Value/Gross Profit: 4.31
• Enterprise Value/Ebitda: 14.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $16.00 ▲(7.89% Upside)

Acorn Energy's strong financial performance, characterized by robust revenue growth and profitability, is a significant positive factor. However, technical indicators suggest bearish momentum, and challenges highlighted in the earnings call, such as hardware revenue decline and increased expenses, weigh on the overall score. The stock's valuation appears attractive, but the lack of a dividend yield is a drawback for some investors.

Positive Factors

Revenue Growth

The company's focus on strategic initiatives and consistent growth in high-margin monitoring revenues supports a strong long-term revenue growth outlook.

Cash Flow and Debt-Free Status

Strong cash flow generation and a debt-free balance sheet enhance financial flexibility, enabling investment in growth opportunities and resilience against economic challenges.

Product Innovation

The introduction of advanced products like Omni and OmniPro positions Acorn Energy to capture market share and drive long-term growth through innovation.

Negative Factors

Hardware Revenue Decline

Delays in hardware revenue recognition can lead to volatility in financial performance, impacting short-term profitability and investor confidence.

Increased Operating Expenses

Rising operating expenses, particularly in SG&A and R&D, may pressure margins and profitability, necessitating careful cost management to sustain financial health.

Residential Market Weakness

Weakness in the residential market, driven by external economic factors, could hinder growth in this segment, impacting overall revenue diversification.

Acorn Energy Business Overview & Revenue Model

Company Description

Acorn Energy, Inc., through its subsidiaries, develops and markets wireless remote monitoring and control systems for various markets in the United States and internationally. It operates through two segments, Power Generation (PG) Monitoring and Cathodic Protection (CP) Monitoring. The PG segment provides wireless remote monitoring and control systems, and services for critical assets, which include stand-by power generators, compressors, pumps, pumpjacks, light towers, turbines, and other industrial equipment; and Internet of Things applications. The CP segment offers remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies. The company was incorporated in 1986 and is based in Wilmington, Delaware.

How the Company Makes Money

Acorn Energy generates revenue through multiple streams, primarily by selling its energy management systems and smart grid technologies to utilities, businesses, and homeowners. The company also earns money from partnerships with other firms in the energy sector, which may include joint ventures or collaborations to develop new technologies or services. Additionally, Acorn Energy may receive government and private grants aimed at promoting renewable energy initiatives, further contributing to its revenue. Its focus on innovation and efficiency positions it to benefit from growing trends in sustainable energy, making it well-placed to capitalize on increasing demand for eco-friendly energy solutions.

Acorn Energy Financial Statement Overview

Summary

Acorn Energy has shown remarkable improvement in financial performance, with strong revenue growth, enhanced profitability, and improved cash flow generation in 2024. The company's low leverage and high equity ratio highlight a stable financial foundation, though the rapid changes in equity levels warrant monitoring.

Income Statement

Acorn Energy has demonstrated strong revenue growth, with a 36.37% increase in 2024 compared to 2023. The company has achieved a significant turnaround in profitability, with a net profit margin of 57.29% in 2024, up from 1.48% in 2023. Gross profit margin is robust at 72.82% for 2024, indicating effective cost management. EBIT and EBITDA margins have also improved substantially, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a healthy equity ratio of 52.30% in 2024, demonstrating strong capital structure. The debt-to-equity ratio is low at 0.02, indicating minimal leverage risk. Return on equity is positive at 113.58%, showcasing high profitability relative to equity. However, the rapid increase in equity from negative figures may indicate potential volatility in equity positions.

Cash Flow

Acorn Energy has achieved impressive growth in free cash flow, with a dramatic improvement from negative figures in prior years to $905,000 in 2024. The operating cash flow to net income ratio is 0.14, suggesting stable operating cash generation. The free cash flow to net income ratio is also positive, further indicating strong cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.63M	10.99M	8.06M	7.00M	6.78M	5.92M
Gross Profit	9.47M	8.00M	6.00M	5.07M	4.90M	4.13M
EBITDA	2.72M	2.13M	302.00K	-456.00K	67.00K	251.00K
Net Income	6.67M	6.29M	119.00K	-633.00K	-26.00K	34.00K
Balance Sheet
Total Assets	12.43M	10.60M	5.45M	5.98M	6.04M	5.20M
Cash, Cash Equivalents and Short-Term Investments	4.17M	2.33M	1.45M	1.45M	1.72M	2.06M
Total Debt	1.05M	98.00K	221.00K	336.00K	443.00K	691.00K
Total Liabilities	5.20M	5.02M	6.28M	7.00M	6.50M	5.72M
Stockholders Equity	7.17M	5.54M	-838.00K	-1.02M	-469.00K	-523.00K
Cash Flow
Free Cash Flow	1.96M	849.00K	-4.00K	-261.00K	-192.00K	363.00K
Operating Cash Flow	1.96M	905.00K	72.00K	31.00K	132.00K	464.00K
Investing Cash Flow	-33.00K	-56.00K	-78.00K	-308.00K	-324.00K	-101.00K
Financing Cash Flow	86.00K	28.00K	5.00K	5.00K	-149.00K	453.00K

Acorn Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACFN, the sentiment is Negative. The current price of 14.83 is below the 20-day moving average (MA) of 14.92, below the 50-day MA of 19.58, and below the 200-day MA of 20.16, indicating a neutral trend. The MACD of -0.76 indicates Negative momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 48.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACFN.

Acorn Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACFN	68 Neutral	$37.14M	5.59	178.77%	―	30.11%	481.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOTK	56 Neutral	$58.12M	38.58	8.45%	―	-0.21%	-0.41%
NEON	49 Neutral	$35.75M	3.98	38.72%	―	-48.54%	―
REFR	49 Neutral	$49.80M	-26.33	-87.36%	―	-16.49%	-59.21%
ODYS	46 Neutral	$50.70M	-2.83	-65.21%	―	-15.76%	-25.27%

Acorn Energy Corporate Events

Acorn Energy Holds Annual Stockholders Meeting

On September 17, 2025, Acorn Energy, Inc. held its Annual Meeting of Stockholders where several key proposals were voted on. The stockholders elected Jan H. Loeb, Gary Mohr, Michael F. Osterer, Peter Rabover, and Samuel M. Zentman to the Board of Directors. Additionally, the appointment of CBIZ CPAs P.C. as the independent registered public accounting firm for 2025 was ratified, and the compensation of the company’s named executive officers was approved in a non-binding advisory vote.