One-glance verdict
Undervalued
$31.66 our estimate vs market $15.35
52% below our estimate, below the bear case
Fundamentals snapshot
Acorn Energy, Inc.
ACFN · NCM · Technology · Scientific & Technical Instruments
Current price
$15.35
52-week range
$12.42 - $23.75
Market cap
$38.91M
Balance sheet
Healthy
1,989.00x Strong cushion
Net cash $3.52M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
- Reward Returns 19.9% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 2/10 years.
What this company does
Acorn Energy, Inc.
Acorn Energy creates wireless systems that remotely watch and control equipment like power generators and air compressors, mainly making money from selling these gadgets and the ongoing service to keep them running. This matters because their technology helps businesses avoid costly breakdowns and manage their operations more efficiently, especially for things like gas pipelines where safety and constant monitoring are key.
How the company got here
Acorn Energy, Inc. was founded in 1986 and is based in Wilmington, Delaware. The company has evolved over the years, focusing on developing and marketing wireless remote monitoring and control systems. A key development was its strategic partnership with AIO Systems, Ltd., aimed at broadening its reach into infrastructure asset management for critical facilities like cell towers and data centers in North America.
What it actually does
Acorn Energy provides advanced wireless systems that allow businesses to monitor and control equipment remotely. Think of it like a sophisticated remote control and sensor system for industrial machinery. These systems help ensure equipment is running smoothly, detect potential problems before they become major issues, and improve overall operational efficiency for their clients.
Power Generation (PG)
This part of Acorn Energy focuses on providing wireless monitoring and control systems specifically for power generation equipment, both for homes and for commercial or industrial use. It includes products like generator monitors and AIRGuard, which keeps an eye on industrial air compressors. These systems help users keep their power sources running reliably and efficiently by allowing remote oversight and adjustments.
Cathodic Protection (CP)
The Cathodic Protection segment offers specialized remote monitoring and control products for gas pipelines. These systems are crucial for protecting pipelines from corrosion, a major concern for gas utilities and pipeline operators. Acorn Energy's solutions in this area help ensure the integrity and safety of these vital infrastructure assets by allowing for remote monitoring of protective systems.
What management is betting on now
Acorn Energy's management is focused on expanding its reach through strategic partnerships, like the one with AIO Systems, Ltd. This collaboration is intended to grow the company's offerings in managing critical infrastructure assets such as cell towers and data centers. The company is also working on enhancing its existing product lines, like the OmniPro and Omni monitor platforms, to improve connectivity and performance for remote monitoring systems.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$2.59M
Net income
$940.00K
Diluted EPS
0.37
Operating cash flow
$999.00K
Free cash flow
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Sources
Revenue
$2.49M
Net income
$294.00K
Diluted EPS
0.12
Operating cash flow
$224.00K
Free cash flow
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Sources
Revenue
$2.23M
Net income
$-77.00K
Diluted EPS
-0.03
Operating cash flow
$53.00K
Free cash flow
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Sources
Revenue
$2.38M
Net income
$1.07M
Diluted EPS
0.42
Operating cash flow
$295.00K
Free cash flow
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Sources
Revenue
$2.48M
Net income
$252.00K
Diluted EPS
0.10
Operating cash flow
$895.00K
Free cash flow
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Sources
Revenue
$3.52M
Net income
$720.00K
Diluted EPS
0.28
Operating cash flow
$629.00K
Free cash flow
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Sources
Revenue
$3.10M
Net income
$464.00K
Diluted EPS
0.19
Operating cash flow
$271.00K
Free cash flow
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Sources
Revenue
$3.53M
Net income
$5.23M
Diluted EPS
2.08
Operating cash flow
$166.00K
Free cash flow
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Is it cheap or expensive?
Fair value $31.66 vs current price $15.35
Our most-likely fair value is $31.66 a share — about 106.3% above today's price of $15.35, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $3.5M - more cash than debt. Interest coverage 1989.0x.
Net debt
$-3.52M
Interest coverage
1,989.00x
Acorn Energy, Inc.'s profit covers its interest bill about 1989.0 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ACFN
BASELINE
Acorn Energy, Inc.
Total debt $959.00K Interest coverage 1,989.00x This is the baseline the peer rows are being compared against.
Total debt $871.32K Interest coverage 8.41x -100% vs ACFN Carries about 236.4x less debt cushion than ACFN.
Total debt $4.47M Interest coverage -24.17x -100% vs ACFN This peer has almost no interest-payment cushion compared with ACFN.
Total debt $8.29M Interest coverage -6.34x -100% vs ACFN This peer has almost no interest-payment cushion compared with ACFN.
What you should know
The case for and against ACFN
2 Rewards
0 Risks
Rewards
-
Returns 19.9% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
25.16x
Forward P/E
—
P/B
4.39x
P/S
4.07x
EV/EBITDA
45.35x
PEG ratio
3.26x
Profitability
How much profit each dollar creates
Gross margin
80.3%
Operating margin
15.1%
Net margin
16.1%
ROE
19.9%
ROA
3.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.11x
Current ratio
2.12x
Quick ratio
1.69x
Total debt
$959.00K
Total cash
$4.48M
Growth
How the business has been compounding
Revenue TTM
$9.68M
Revenue 5Y CAGR
14.1%
EPS TTM
0.61
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.57M
Free CF TTM
$2.06M
FCF margin
21.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2013-02-15