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ESS Tech (GWH)
NYSE:GWH
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ESS Tech
(NYSE:GWH)
36Underperform
Positive Factors
Cost Reduction
Management has made meaningful progress in reducing the costs of its Energy Warehouse and Energy Center offerings.
Operational Achievements
The first Energy Center with Portland General Electric is operational and achieving high reliability and availability.
Strategic Partnerships
Management appears to have strong partners in Honeywell, Softbank, and others who could provide resources, even after a going concern notice was revealed.
Negative Factors
CEO Departure
The CEO's departure raises concerns about potential challenges in the company's product ramp-up and overall financial outlook.
Funding Delays
Funding delays continue to impact performance, and the company is undergoing a CEO search and capital raising efforts.
Market Competitiveness
The company is facing a competitive threat from lithium-ion batteries, which are becoming increasingly cost-effective for long-duration energy storage.
ESS Tech (GWH) vs. S&P 500 (SPY)
Market Cap
$24.93M
Dividend YieldN/A
Average Volume (3M)48.90K
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth-16.51%
EPS Growth0.19%
CountryUS
Employees240
SectorIndustrials
Sector Strength64
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-7.32
Shares Outstanding12,103,750
10 Day Avg. Volume48,498
30 Day Avg. Volume48,901
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.47
Price to Cash Flow (P/CF)-0.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside39.53% Upside
Rating ConsensusHold
Number of Analyst Covering3
ESS Tech Business Overview & Revenue Model
Company DescriptionESS Tech, Inc. (GWH) is a leading provider in the energy storage sector, specializing in long-duration iron flow battery technology. The company designs, builds, and operates innovative energy storage systems that support renewable energy integration and grid reliability. ESS Tech's core product is the Energy Warehouse, which is designed to deliver safe, sustainable, and cost-effective energy storage solutions for utilities, commercial, and industrial customers.
How the Company Makes MoneyESS Tech generates revenue primarily through the sale of its Energy Warehouse systems. These systems are sold to a variety of customers, including utilities, commercial entities, and industrial clients who require reliable and sustainable energy storage solutions. Additionally, ESS Tech may engage in service agreements for the maintenance and operation of their systems, providing an additional revenue stream. Partnership with entities focused on renewable energy projects and government incentives for sustainable energy solutions also contribute to the company's financial performance, allowing them to expand their market reach and product offerings.
ESS Tech Financial Statement Overview
Summary
ESS Tech faces significant challenges across its financial statements. The company is experiencing negative margins and declining revenues, impacting profitability and indicating operational difficulties. While leverage is low, persistent losses are eroding shareholder equity, and the negative cash flow highlights liquidity concerns. The company needs to address revenue generation and cost management to improve its financial health.Income Statement
ESS Tech's income statement reveals a challenging financial position in the TTM period. Gross profit margin is negative due to high costs relative to revenue. Revenue has decreased compared to the previous annual report, indicating revenue growth issues. Net profit margin is also negative, reflecting ongoing losses. The EBIT and EBITDA margins underline operational inefficiencies and significant expenses that are not being offset by revenue.35
Negative
Balance Sheet
The balance sheet shows a moderate level of financial stability. The debt-to-equity ratio is low, indicating manageable leverage. However, the return on equity is negative due to ongoing losses, which raises concerns about the company's ability to generate returns for shareholders. The equity ratio is positive, suggesting that the company has a reasonable amount of equity relative to its assets, providing some financial cushion.45
Neutral
Cash Flow
Cash flow analysis highlights some concerns, with negative free cash flow indicating that the company is spending more cash than it generates. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting net income into cash. The free cash flow to net income ratio further emphasizes liquidity challenges, indicating potential issues in sustaining operations without external financing.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.24M | 7.54M | 894.00K | 0.00 | 0.00 | 0.00 | Gross Profit |
| -44.23M | -12.96M | -1.76M | -572.00K | -436.00K | 0.00 | EBIT |
| -85.37M | -85.91M | -105.49M | -60.90M | -17.39M | -9.89M | EBITDA |
| -78.74M | -79.39M | -103.97M | -60.03M | -16.96M | -9.63M | Net Income Common Stockholders |
| -78.87M | -77.58M | -77.97M | -324.85M | -30.48M | -11.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 119.01M | 108.06M | 139.81M | 238.94M | 4.90M | 18.29M | Total Assets |
| 147.45M | 143.23M | 173.55M | 250.20M | 9.02M | 21.14M | Total Debt |
| 5.14M | 2.54M | 5.87M | 3.77M | 5.70M | 828.00K | Net Debt |
| -82.67M | -17.63M | -28.90M | -235.17M | 796.00K | -17.46M | Total Liabilities |
| 30.21M | 39.88M | 36.58M | 45.33M | 36.91M | 5.56M | Stockholders Equity |
| 117.24M | 103.36M | 136.97M | 204.87M | -27.89M | 15.58M |
| Cash Flow | Free Cash Flow | ||||
| -73.29M | -60.69M | -95.80M | -54.62M | -17.15M | -7.53M | Operating Cash Flow |
| -67.89M | -54.90M | -81.62M | -51.85M | -16.64M | -6.67M | Investing Cash Flow |
| 42.96M | 15.07M | -117.88M | -2.77M | -502.00K | -851.00K | Financing Cash Flow |
| 114.00K | 25.65M | -4.07M | 288.45M | 4.72M | 22.25M |
ESS Tech Technical Analysis
Negative
2.15
Price Trends
3.27
Negative
4.40
Negative
6.31
Negative
Market Momentum
-0.34
Negative
38.51
Neutral
30.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWH, the sentiment is Negative. The current price of 2.15 is below the 20-day moving average (MA) of 2.51, below the 50-day MA of 3.27, and below the 200-day MA of 6.31, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 38.51 is Neutral, neither overbought nor oversold. The STOCH value of 30.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GWH.
ESS Tech Risk Analysis
ESS Tech disclosed 80 risk factors in its most recent earnings report. ESS Tech 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
ESS Tech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $4.26B | 11.28 | 5.43% | 215.24% | 4.12% | -8.73% | |
54 Neutral | $209.29M | ― | -21.13% | ― | 15.67% | -45.59% | |
49 Neutral | $112.83M | ― | -283.03% | ― | 46.76% | 19.94% | |
44 Neutral | $1.18B | ― | -88.04% | ― | 1429.35% | -36.13% | |
38 Underperform | $159.60M | ― | -47.77% | ― | -27.50% | -58.61% | |
36 Underperform | $24.93M | ― | -130.40% | ― | -16.51% | 0.19% | |
33 Underperform | $1.05B | ― | 125.43% | ― | -4.71% | -117.58% |
* Industrials Sector Average
Performance Comparison
GWH
ESS Tech
2.28
-8.32
-78.49%
SKYX
SQL Technologies
1.04
0.21
25.30%
EOSE
Eos Energy Enterprises
4.88
4.13
550.67%
ENVX
Enovix
6.79
0.95
16.27%
SLDP
Solid Power
1.14
-0.50
-30.49%
NVX
NOVONIX Ltd Sponsored ADR
1.18
-1.03
-46.61%
ESS Tech Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: -34.05% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
While the company achieved significant cost reductions and successfully launched the Energy Base product with promising extended duration capabilities, they faced notable challenges with revenue shortfall, financial losses, and capital raising difficulties. The positive strides in product development and domestic manufacturing positioning are counterbalanced by financial and operational hurdles.Highlights
Energy Center Deployment Success
Successfully delivered eight Energy Center systems to a Florida utility, significantly contributing to 2024 revenue and providing valuable project-level implementation insights.
Cost Reduction Achievements
Achieved a nearly 50% reduction in battery pack costs and realized break-even on the latest Energy Center design, one year earlier than expected.
Energy Base Product Launch
Launched the Energy Base product, offering extended durations beyond 8-10 hours, aiming for 12-plus hours by 2027, enhancing capacity to meet grid-level demands.
Domestic Manufacturing and Sourcing
98% of components sourced domestically, supporting the U.S. manufacturing initiative and reducing tariff risks.
Production Tax Credit Benefits
Expanded production tax credits by over 30%, improving cost of goods sold and contributing positively to cash flow and liquidity.
Lowlights
Revenue Shortfall
2024 revenue fell short of expectations at $6.3 million, below the guidance range of $9 million to $11 million, primarily due to partner funding issues.
NYSE Listing Compliance Issue
Received notice for falling below NYSE market cap requirements, working on a plan to address this within an 18-month cure period.
Ongoing Financial Losses
Reported a negative adjusted EBITDA of $71.3 million for 2024, reflecting significant operational and financial challenges.
Challenges with Capital Raising
Faced difficulties in securing adequate funding, impacting revenue forecasts and planning for future operations and expansions.
Company Guidance
During the fiscal year 2024 conference call, ESS reported a revenue of $6.3 million, falling short of the guidance range of $9 million to $11 million due to a partner's funding issues. The company delivered six Energy Center (EC) systems to a Florida utility, contributing to the year's revenue, and completed commissioning for Portland General Electric. ESS achieved a nearly 50% reduction in battery pack costs and reached non-GAAP gross margin breakeven for its products. ESS's batteries have transacted almost 2.5 gigawatt-hours of energy globally. The company aggressively pursued cost reduction initiatives and plans to focus on its Energy Base product, which promises extended durations beyond 8 to 10 hours. ESS is targeting a capital raise to bolster its balance sheet and aims for transaction closing in the second quarter to support its strategic shift. The company received notice from the NYSE for falling below market cap requirements but is taking action to address this. ESS is actively bidding on projects with its new Energy Base product and plans to execute during 2025 and 2026.ESS Tech Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
ESS Tech Faces NYSE Non-Compliance Notice
Negative
Mar 28, 2025
On March 24, 2025, ESS Tech, Inc. received a notice from the New York Stock Exchange indicating non-compliance with the minimum market capitalization standard, as its average market capitalization and stockholders’ equity were both below $50 million. The notice does not immediately impact the listing of ESS’s common stock or its business operations. ESS plans to submit a compliance plan within 45 days, and if accepted, will have 18 months to meet the standards, during which time its stock will continue to be traded on the NYSE.
Executive/Board ChangesBusiness Operations and Strategy
ESS Tech Appoints Interim CEO Amid Strategic Shift
Neutral
Feb 14, 2025
ESS Tech, Inc. announced the resignation of Eric Dresselhuys as CEO and his departure from the board on February 13, 2025. Kelly Goodman, Vice President of Legal, has been appointed interim CEO, tasked with leading the company’s strategic direction as it bids for projects in the long-duration storage market, targeting AI and data center-driven needs. The board has engaged advisors to explore financial opportunities to support this strategic shift, aiming to maximize shareholder value and strengthen the company’s market position.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.