Acorn Energy, Inc. (NASDAQ: ACFN)

Sector: Technology Industry: Scientific & Technical Instruments CIK: 0000880984
Market Cap 37.38 Mn
P/B 5.21
P/E 5.60
P/S 2.96
ROIC (Qtr) 42.65
Div Yield % 0.00
Rev 1y % (Qtr) -18.75
Total Debt (Qtr) 1.05 Mn
Debt/Equity (Qtr) 0.15

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 1.96M provides robust 1.87x coverage of total debt 1.05M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 4.17M provide 35.92x coverage of short-term debt 116000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 12.43M provides 11.89x coverage of total debt 1.05M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 1.96M provides strong 15.08x coverage of stock compensation 130000, indicating sustainable incentive practices.
  • Operating cash flow of 1.96M provides exceptional 50.28x coverage of minority interest expenses 39000, showing strong core operations.

Bear case

  • Operating cash flow of 1.96M barely covers its investment activities of (33000), with a coverage ratio of -59.42, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (33000) provide weak support for R&D spending of 1.14M, which is -0.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 1.96M provides insufficient coverage of deferred revenue obligations of 3.48M, which is 0.56x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 1.96M provides minimal -0.48x coverage of tax expenses of (4.05M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Fixed assets of 1.43M showing 5.80x ratio to depreciation of 246000 indicates aging infrastructure requiring significant near-term capital investment.

Peer comparison

Companies in the Scientific & Technical Instruments
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GRMN Garmin Ltd 38.77 Bn 24.68 5.58 0.16 Bn
2 KEYS Keysight Technologies, Inc. 34.91 Bn 41.07 6.49 2.78 Bn
3 COHR Coherent Corp. 28.91 Bn 244.51 4.78 3.51 Bn
4 TDY Teledyne Technologies Inc 23.87 Bn 29.19 3.98 2.53 Bn
5 TRMB Trimble Inc. 19.54 Bn 54.65 5.43 1.39 Bn
6 FTV Fortive Corp 18.68 Bn 31.02 3.31 3.31 Bn
7 MKSI Mks Inc 10.78 Bn 38.63 2.81 4.55 Bn
8 CGNX Cognex Corp 6.14 Bn 55.76 6.32 0.08 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.83 2.20
EV to Cash from Ops. EV/CFO 17.94 9.84
EV to Debt EV to Debt 33.64 22.70
EV to EBIT EV/EBIT 13.42 15.74
EV to EBITDA EV/EBITDA 12.56 11.58
EV to Free Cash Flow [EV/FCF] EV/FCF 18.08 24.79
EV to Market Cap EV to Market Cap 0.94 -2.78
EV to Revenue EV/Rev 2.79 6.45
Price to Book Value [P/B] P/B 5.21 7.12
Price to Earnings [P/E] P/E 5.60 13.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -16.40
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -7.19
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.83
Interest Coverage Int. cover (Qtr) 0.00 -13.61
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -275.00 -21.70
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 93.54 101.63
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 482.45 19.84
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 95.06 17.31
EBIT Growth (1y) % EBIT 1y % (Qtr) 114.66 20.90
EBT Growth (1y) % EBT 1y % (Qtr) 114.66 82.68
EPS Growth (1y) % EPS 1y % (Qtr) 470.21 65.55
FCF Growth (1y) % FCF 1y % (Qtr) 341.27 32.88
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 33.49 34.27
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.02 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 1.06 2.99
Current Ratio Curr Ratio (Qtr) 1.71 4.83
Debt to Equity Ratio Debt/Equity (Qtr) 0.15 0.67
Interest Cover Ratio Int Coverage (Qtr) 0.00 -13.61
Times Interest Earned Times Interest Earned (Qtr) 0.00 -13.61
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 22.70 -296.15
EBIT Margin % EBIT Margin % (Qtr) 20.75 -316.09
EBT Margin % EBT Margin % (Qtr) 20.75 -351.37
Gross Margin % Gross Margin % (Qtr) 74.90 40.05
Net Profit Margin % Net Margin % (Qtr) 52.80 -354.10