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Acorn Energy (ACFN)
OTHER OTC:ACFN
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Acorn Energy
(OTC:ACFN)
Rating:76Outperform
Price Target:
$19.00
▲(20.63%Upside)
Acorn Energy (ACFN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.73M
Dividend YieldN/A
Average Volume (3M)2.03K
Price to Earnings (P/E)5.9
Beta (1Y)0.63
Revenue Growth41.58%
EPS Growth2385.40%
CountryUS
Employees25
SectorTechnology
Sector Strength93
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.19
Shares Outstanding2,491,130
10 Day Avg. Volume3,450
30 Day Avg. Volume2,028
Financial Highlights & Ratios
PEG Ratio0.94
Price to Book (P/B)6.55
Price to Sales (P/S)0.00
P/FCF Ratio32.76
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit4.26
Enterprise Value/Ebitda5.60
Forecast
1Y Price Target
$20.50Price Target Upside30.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Acorn Energy Business Overview & Revenue Model
Company DescriptionAcorn 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 MoneyAcorn Energy generates revenue primarily through its subsidiary OmniMetrix, which offers remote monitoring and control solutions for pipelines, standby generators, and other critical equipment. The company's revenue streams include the sale of monitoring hardware and subscription fees for ongoing monitoring services. These services help clients ensure operational efficiency and prevent costly downtime. Significant factors contributing to Acorn Energy's earnings include technological innovation, long-term customer relationships, and the increasing demand for remote monitoring solutions in various industrial sectors.
Acorn Energy Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -8.70%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
Acorn Energy's Q1 2025 earnings call highlights significant revenue and EPS growth, a promising uplisting to Nasdaq, and the launch of new products. However, the company faces challenges with seasonally low revenue quarters, increased operating expenses, and delays in the demand response rollout.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Revenue rose 45% or $966,000 to $3.1 million, driven by a 78% increase in hardware sales due to a large contract with a cellphone provider.
Increased Operating Income
Operating income increased by $526,000, reflecting 54% of the revenue increase, showcasing the efficiency and operating leverage of the business model.
EPS Growth
Q1 2025 EPS rose to $0.19 per share versus $0.03 in Q1 2024, marking an increase of over 600%.
Improved Gross Margin
Gross margin increased to 75.1% in Q1 2025 from 74.6% in Q1 2024.
Uplisting to Nasdaq
Initiated dialogue with Nasdaq for uplisting, which is expected to be completed by the end of Q3 2025.
Launch of New Products
Upcoming launch of the next generation of OmniMetrix products, Omni and OmniPro, offering enhanced features and ease of installation.
Negative Updates
Seasonally Low Revenue Quarter
Q1 is typically a seasonally low revenue quarter for the company, affecting overall performance.
Higher Operating Expenses
Operating expenses increased by 14%, primarily due to higher SG&A and R&D expenses.
Delay in Demand Response Rollout
The rollout of demand response is taking longer than expected due to the complexity of the problem.
Company Guidance
In the first quarter of fiscal year 2025, Acorn Energy reported a significant 45% increase in revenue, amounting to $3.1 million, driven by a 78% rise in hardware sales due to a large contract with a cellphone provider. Operating income increased by 54% of the revenue, showcasing the efficiency of their business model, where approximately 50% of each incremental revenue dollar contributes to operating income and EBITDA balance. The company's operating expenses decreased to 56% of revenue in Q1 2025, down from 71% in Q1 2024. Acorn's EPS surged over 600% to $0.19 per share from $0.03 in Q1 2024, despite being below the adjusted EPS of $0.31 per share in Q4 2024. Additionally, their net income is protected from federal tax due to NOLs. With a focus on long-term growth opportunities, Acorn is pursuing an uplisting to Nasdaq and considering a corporate name change. They continue to invest in R&D, with plans to launch new monitoring products, Omni and OmniPro, in June, which promise enhanced functionality and ease of installation.Acorn Energy Financial Statement Overview
Summary
Acorn Energy has shown strong financial performance with significant revenue growth, enhanced profitability, and improved cash flow generation in 2024. The low leverage and high equity ratio highlight a stable financial foundation, though 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.85
Very Positive
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.70
Positive
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.78
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.99M | 8.06M | 7.00M | 6.78M | 5.92M |
| Gross Profit | 8.00M | 6.00M | 5.07M | 4.90M | 4.13M |
| EBITDA | 2.13M | 302.00K | -456.00K | 67.00K | 251.00K |
| Net Income | 6.29M | 119.00K | -633.00K | -26.00K | 34.00K |
Balance Sheet | |||||
| Total Assets | 10.60M | 5.45M | 5.98M | 6.04M | 5.20M |
| Cash, Cash Equivalents and Short-Term Investments | 2.33M | 1.45M | 1.45M | 1.72M | 2.06M |
| Total Debt | 98.00K | 221.00K | 336.00K | 443.00K | 691.00K |
| Total Liabilities | 5.02M | 6.28M | 7.00M | 6.50M | 5.72M |
| Stockholders Equity | 5.54M | -838.00K | -1.02M | -469.00K | -523.00K |
Cash Flow | |||||
| Free Cash Flow | 849.00K | -4.00K | -261.00K | -192.00K | 363.00K |
| Operating Cash Flow | 905.00K | 72.00K | 31.00K | 132.00K | 464.00K |
| Investing Cash Flow | -56.00K | -78.00K | -308.00K | -324.00K | -101.00K |
| Financing Cash Flow | 28.00K | 5.00K | 5.00K | -149.00K | 453.00K |
Acorn Energy Technical Analysis
Negative
15.75
Price Trends
17.38
Negative
16.60
Negative
16.30
Negative
Market Momentum
-0.35
Positive
40.51
Neutral
6.44
Positive
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 15.75 is below the 20-day moving average (MA) of 16.95, below the 50-day MA of 17.38, and below the 200-day MA of 16.30, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 6.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACFN.
Acorn Energy Risk Analysis
Acorn Energy disclosed 22 risk factors in its most recent earnings report. Acorn Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Acorn Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $39.73M | 5.94 | 251.05% | ― | 41.58% | 2385.40% | |
67 Neutral | $56.98M | 37.33 | 12.53% | ― | 22.59% | ― | |
64 Neutral | $41.39M | 103.76 | 1.04% | ― | 28.82% | 60.24% | |
63 Neutral | $34.26B | 5.43 | -11.67% | 1.85% | 5.30% | -18.55% | |
61 Neutral | $35.88M | ― | -18.07% | ― | -13.83% | -476.23% | |
59 Neutral | $29.47M | ― | -14.35% | ― | -18.88% | -534.79% | |
48 Neutral | $24.27M | 6.41 | -9.81% | ― | -12.87% | -148.14% |
* Technology Sector Average
Performance Comparison
ACFN
Acorn Energy
15.75
6.13
63.72%
DAIO
Data I/O
3.20
0.45
16.36%
LGL
LGL Group
7.51
2.01
36.55%
MIND
MIND Technology
7.60
2.76
57.02%
NSYS
Nortech Systems
8.66
-5.74
-39.86%
CPSH
CPS Technologies
2.64
0.92
53.49%
Acorn Energy Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Acorn Energy Enters Change in Control Bonus Agreement
Neutral
Mar 27, 2025
On March 25, 2025, Acorn Energy entered into a Change in Control Bonus Agreement with its CFO and COO of its OmniMetrix subsidiary, Tracy Clifford. The agreement stipulates that if a Change in Control occurs within a specified period, and Clifford remains in her role, she will receive a cash bonus based on her service duration since December 1, 2019. This move potentially impacts the company’s executive retention strategy and financial commitments during a change in control scenario.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.