ACORN ENERGY, INC.

Where It Passes

Where It Falls Short

• Cash Flow0% pass✓ 1✗ 11▾

  No clean pass — all 10 investors flag at least one cash flow criterion

  Free Cash Flow Proxy$0.3M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-4.6M

  ✗LynchPositive and growing

  Operating Cash Flow$2.1M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=15.67%, ROA=18.82%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)17.9x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=15.1x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive0/8 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency6/17 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability6% pass✓ 12✗ 23▾

  15 of 16 flag ACFN's profitability — Graham, Buffett, Lynch +12 more

  Net income / market capitalization+5.90%; #1440/6340 (top 22.7%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)5/26 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)13/26 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-597.8%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)17.3% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$0.3M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 15.1x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE22.5%

  ✓Lynch> 15%

  EBIT / Enterprise Value6.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=6.0%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets18.82%

  ✓PiotroskiROA > 0

  ROA Change YoY59.40% -> 18.82% (delta: -40.58%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=15.67%, ROA=18.82%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY72.8% -> 76.8%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue8.7%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity22.5%

  ✓Dreman> 12%

  Margin of SafetyP/E=15.1x, P/B=4.5x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-34.7% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value15.9% (IV=$17.75 vs Price=$14.93)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency13/24 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue7.4%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity22.5%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend0.9% (2023) -> 17.3% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 74.5% -> 76.8%, operating margin 0.9% -> 17.3%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets+44.52%; #810/3702 (top 21.9%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+22.49%; #696/5226 (top 13.3%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.2463; #4432/5884 (top 75.3%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years4/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts7% pass✓ 1✗ 13▾

  Split decision: 13 FAIL · 2 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (1/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)✗TempletonFAIL (3/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage8% pass✓ 3✗ 12▾

  11 of 12 flag ACFN's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest Coverage

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.51

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDA

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section
• Valuation8% pass✓ 4✗ 24▾

  12 of 13 flag ACFN's valuation — Graham, Lynch, Greenblatt +9 more

  Net income / market capitalization+5.90%; #1440/6340 (top 22.7%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / 3-yr avg EPS12.6x

  ✓Graham<= 15x

  Price-to-Book Ratio4.5x

  ✗Graham<= 1.5x

  P/E x P/B57.20

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 15.1x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value6.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=6.0%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS15.1x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)17.9x

  ✗Dreman< 8x

  Price / Book Value per Share4.5x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=15.1x, OE Yield=7.0%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=15.1x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=15.1x, P/B=4.5x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value15.9% (IV=$17.75 vs Price=$14.93)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($14.87)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.2622; #3870/6449 (top 60.0%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS15.1x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share4.53x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.2559; #3529/5247 (top 67.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-18.06%; #3871/6202 (top 62.4%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth13% pass✓ 3✗ 10▾

  7 of 8 flag ACFN's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 15.1x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 14.6% vs Rev: -23.3%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency13/24 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth15.1%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 74.5% -> 76.8%, operating margin 0.9% -> 17.3%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR14.2%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag ACFN's efficiency — Graham, Buffett, Greenblatt +4 more

  Current Ratio1.51

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-205.1%

  ✗Buffett> 10%

  ROIC - WACC-215.1%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)N/A (invested capital <= 0)

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.26 -> 1.83

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.04x -> 0.86x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.51

  ✓Dreman> 1.5

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Valuation models20% pass✓ 1✗ 4▾

  Models split on ACFN at $14.93 — fair values range $4.20–$17.75

  Graham fair value$8.56

  ✗Graham-74.4% margin vs $14.93

  Greenblatt fair value$4.20

  ✗Greenblatt-255.5% margin vs $14.93

  Dreman fair value$17.75

  ✓Dreman+15.9% margin vs $14.93

  Pabrai fair value$11.17

  ✗Pabrai-33.7% margin vs $14.93

  Akre fair value$7.14

  ✗Akre-109.1% margin vs $14.93