📊 ACFN Key Takeaways
Is Acorn Energy, Inc.. (ACFN) a Good Investment?
Acorn Energy demonstrates exceptional profitability with 21.9% net margins and strong returns (ROE 30.4%, ROA 18.8%), supported by solid liquidity (1.83x current ratio) and minimal debt. However, the dramatic 9,386% revenue surge appears anomalous and requires validation, while the 60.6% EPS decline despite net income growth raises questions about share dilution or one-time items that warrant deeper investigation.
Acorn Energy shows strong current fundamentals, with high gross margins, positive operating leverage, solid free cash flow generation, and a very clean balance sheet supported by cash and minimal debt. However, the extreme revenue surge did not translate into comparable bottom-line growth, while diluted EPS fell sharply, which raises questions about growth quality, share count dilution, or earnings normalization. The company looks financially healthy, but the durability and quality of recent growth need confirmation before a more aggressive view is warranted.
Why Buy Acorn Energy, Inc.. Stock? ACFN Key Strengths
- Exceptional net profit margin of 21.9% indicating strong operational efficiency
- Robust return metrics with ROE of 30.4% and ROA of 18.8% demonstrating effective capital deployment
- Strong liquidity position with current ratio of 1.83x and minimal leverage (0.01x debt/equity)
- Solid free cash flow generation of $2.1M with 17.9% FCF margin
- Outstanding interest coverage ratio of 1,989x indicating negligible default risk
- High profitability with 76.8% gross margin, 17.3% operating margin, and 21.9% net margin
- Strong financial health with $4.45M cash, very low long-term debt, 1.83x current ratio, and 0.01x debt/equity
- Positive cash generation with $2.09M operating cash flow and $2.06M free cash flow on modest capex
ACFN Stock Risks: Acorn Energy, Inc.. Investment Risks
- Extraordinary 9,386% YoY revenue growth appears unsustainable and suggests potential one-time contracts or accounting anomalies requiring clarification
- Significant disconnect between net income growth and 60.6% EPS decline indicates substantial share dilution or unusual equity transactions
- Modest absolute scale with only $11.5M in revenue limits operational resilience despite strong margins
- Intensive insider activity with 9 Form 4 filings in 90 days suggests potential trading volatility or uncertain leadership conviction
- Small company profile in engineering services increases vulnerability to contract concentration and client loss risks
- Revenue growth quality is uncertain because reported sales surged 9386% while net income was roughly flat
- Diluted EPS fell 60.6% year over year despite positive earnings, suggesting dilution or weaker per-share economics
- Small asset and equity base may make results more volatile and more sensitive to customer concentration or one-off contracts
Key Metrics to Watch
- Revenue sustainability and quality of earnings in next reporting period to confirm growth trajectory
- Share dilution analysis and weighted average shares outstanding trend
- Customer concentration and contract pipeline to assess revenue predictability
- Operating cash flow consistency relative to reported net income
- Gross margin sustainability given the dramatic revenue increase
- Diluted share count and EPS conversion versus net income
- Revenue retention and operating cash flow consistency over the next few filings
Acorn Energy, Inc.. (ACFN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Acorn Energy, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ACFN Profit Margin, ROE & Profitability Analysis
ACFN vs Services Sector: How Acorn Energy, Inc.. Compares
How Acorn Energy, Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Acorn Energy, Inc.. Stock Overvalued? ACFN Valuation Analysis 2026
Based on fundamental analysis, Acorn Energy, Inc.. appears fundamentally strong relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Acorn Energy, Inc.. Balance Sheet: ACFN Debt, Cash & Liquidity
ACFN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Acorn Energy, Inc..'s revenue has grown significantly by 69% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.51 reflects profitable operations.
ACFN Revenue Growth, EPS Growth & YoY Performance
ACFN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.5M | $252.0K | $0.10 |
| Q2 2025 | $2.3M | $271.0K | $0.11 |
| Q1 2025 | $2.1M | $65.0K | $0.03 |
| Q3 2024 | $2.1M | $24.0K | $0.01 |
| Q2 2024 | $2.0M | $11.0K | $0.00 |
| Q1 2024 | $1.7M | $65.0K | $-0.03 |
| Q3 2023 | $1.8M | $24.0K | $0.01 |
| Q2 2023 | $1.6M | $11.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Acorn Energy, Inc.. Dividends, Buybacks & Capital Allocation
ACFN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Acorn Energy, Inc.. (CIK: 0000880984)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACFN
What is the AI rating for ACFN?
Acorn Energy, Inc.. (ACFN) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACFN's key strengths?
Claude: Exceptional net profit margin of 21.9% indicating strong operational efficiency. Robust return metrics with ROE of 30.4% and ROA of 18.8% demonstrating effective capital deployment. ChatGPT: High profitability with 76.8% gross margin, 17.3% operating margin, and 21.9% net margin. Strong financial health with $4.45M cash, very low long-term debt, 1.83x current ratio, and 0.01x debt/equity.
What are the risks of investing in ACFN?
Claude: Extraordinary 9,386% YoY revenue growth appears unsustainable and suggests potential one-time contracts or accounting anomalies requiring clarification. Significant disconnect between net income growth and 60.6% EPS decline indicates substantial share dilution or unusual equity transactions. ChatGPT: Revenue growth quality is uncertain because reported sales surged 9386% while net income was roughly flat. Diluted EPS fell 60.6% year over year despite positive earnings, suggesting dilution or weaker per-share economics.
What is ACFN's revenue and growth?
Acorn Energy, Inc.. reported revenue of $11.5M.
Does ACFN pay dividends?
Acorn Energy, Inc.. does not currently pay dividends.
Where can I find ACFN SEC filings?
Official SEC filings for Acorn Energy, Inc.. (CIK: 0000880984) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACFN's EPS?
Acorn Energy, Inc.. has a diluted EPS of $0.99.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ACFN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Acorn Energy, Inc.. has a HOLD rating with 69% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ACFN stock overvalued or undervalued?
Valuation metrics for ACFN: ROE of 30.4% (sector avg: 16%), net margin of 21.9% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy ACFN stock in 2026?
Our dual AI analysis gives Acorn Energy, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ACFN's free cash flow?
Acorn Energy, Inc..'s operating cash flow is $2.1M, with capital expenditures of $33.0K. FCF margin is 17.9%.
How does ACFN compare to other Services stocks?
Vs Services sector averages: Net margin 21.9% (avg: 10%), ROE 30.4% (avg: 16%), current ratio 1.83 (avg: 1.5).
Why is ACFN's return on equity (ROE) so high?
Acorn Energy, Inc.. has a return on equity of 30.4%, significantly above the Services sector average of 16%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 21.9% net margin.