ESS Tech (GWH) AI Stock Analysis

• Market Cap: $27.56M
• Dividend Yield: N/A
• Average Volume (3M): 607.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -16.98%
• EPS Growth: 2.43%
• Country: US
• Employees: 240
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.90
• Shares Outstanding: 16,020,884
• 10 Day Avg. Volume: 1,400,713
• 30 Day Avg. Volume: 607,372
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: -0.40
• Enterprise Value/Ebitda: -0.22
• 1Y Price Target: $2.75
• Price Target Upside: -33.89% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $4.00 ▼(-3.85% Downside)

The overall stock score reflects significant financial challenges, with consistent losses and liquidity issues being the most impactful factors. While technical analysis shows some bullish momentum, overbought conditions could limit further gains. The earnings call provided some positive developments, but low revenue and valuation concerns weigh heavily on the stock's attractiveness.

Positive Factors

Product Launch Success

The successful launch of the Energy Base product and strong market interest indicate a robust demand, potentially driving long-term revenue growth and enhancing ESS Tech's market position in the energy storage sector.

Cost Reduction Achievements

Significant cost reductions improve operational efficiency, potentially leading to better margins and financial stability, which are crucial for long-term sustainability and competitiveness.

Capital Acquisition

Securing substantial new capital strengthens the balance sheet and provides financial flexibility, supporting strategic initiatives and operational longevity in a capital-intensive industry.

Negative Factors

Low Revenue Levels

Despite a significant increase, the low revenue levels highlight challenges in scaling operations and achieving market penetration, which could impede long-term growth and profitability.

Future Revenue Uncertainty

Lack of revenue guidance creates uncertainty about future financial performance, potentially affecting investor confidence and strategic planning, which are critical for sustained growth.

Dependency on External Financing

Reliance on external financing for operations and growth highlights liquidity risks and may limit strategic flexibility, impacting long-term financial health and operational resilience.

ESS Tech Business Overview & Revenue Model

Company Description

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

How the Company Makes Money

ESS Tech, Inc. generates revenue primarily through the sale of its iron flow battery systems. These systems are marketed to utilities, commercial entities, and industrial customers seeking reliable and sustainable long-duration energy storage solutions. The company may also engage in strategic partnerships and collaborations to enhance its product offerings and expand its market reach. Additionally, ESS Tech might receive income from service contracts related to the maintenance and support of its energy storage systems, as well as from potential licensing or technology transfer agreements. Key revenue streams include direct sales of energy storage products, ongoing service agreements, and strategic alliances that facilitate the deployment and adoption of its technology.

ESS Tech Financial Statement Overview

Summary

ESS Tech faces substantial financial challenges, with consistent losses across income, balance sheet, and cash flow statements. While revenue growth is a positive sign, the company must address its profitability and cash flow issues to achieve financial stability. Strategic improvements in cost management and operational efficiency are crucial for future success.

Income Statement

ESS Tech's income statement reveals significant challenges, with persistent negative margins across gross, net, EBIT, and EBITDA. Despite a notable revenue growth rate of 48.36% in the TTM, the company struggles with profitability, as evidenced by negative profit margins. The consistent losses indicate a need for strategic adjustments to improve operational efficiency and cost management.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating limited leverage, which is a positive aspect. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating returns from equity. The equity ratio suggests a moderate level of equity financing, but the overall financial health remains weak due to persistent losses.

Cash Flow

Cash flow analysis highlights significant negative operating and free cash flows, indicating liquidity challenges. The free cash flow to net income ratio suggests that cash flow issues are closely tied to net losses. The negative free cash flow growth rate further emphasizes the need for improved cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.17M	6.29M	7.54M	894.00K	0.00	0.00
Gross Profit	-38.82M	-45.36M	-12.96M	-1.76M	-572.00K	-436.00K
EBITDA	-71.59M	-85.07M	-79.39M	-103.97M	-60.03M	-16.96M
Net Income	-75.05M	-86.22M	-77.58M	-77.97M	-324.85M	-30.48M
Balance Sheet
Total Assets	39.62M	71.81M	143.23M	173.55M	250.20M	9.02M
Cash, Cash Equivalents and Short-Term Investments	797.00K	31.60M	108.06M	139.81M	238.94M	4.90M
Total Debt	872.00K	1.69M	2.54M	5.87M	3.77M	5.70M
Total Liabilities	36.31M	42.93M	39.88M	36.58M	45.33M	36.91M
Stockholders Equity	3.30M	28.88M	103.36M	136.97M	204.87M	-27.89M
Cash Flow
Free Cash Flow	-75.91M	-79.51M	-60.69M	-95.80M	-54.62M	-17.15M
Operating Cash Flow	-68.69M	-72.22M	-54.90M	-81.62M	-51.85M	-16.64M
Investing Cash Flow	31.49M	64.76M	15.07M	-117.88M	-2.77M	-502.00K
Financing Cash Flow	920.00K	174.00K	25.65M	-4.07M	288.45M	4.72M

ESS Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWH, the sentiment is Positive. The current price of 4.16 is above the 20-day moving average (MA) of 1.77, above the 50-day MA of 1.66, and above the 200-day MA of 2.72, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 84.36 is Negative, neither overbought nor oversold. The STOCH value of 52.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GWH.

ESS Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SLDP	57 Neutral	$1.13B	―	-22.60%	―	14.82%	-19.27%
EOSE	56 Neutral	$4.14B	―	125.43%	―	128.49%	-697.81%
ENVX	56 Neutral	$2.47B	―	-68.46%	―	60.04%	52.49%
GWH	52 Neutral	$27.56M	―	-207.48%	―	-16.98%	2.43%
NVX	50 Neutral	$285.83M	―	-45.13%	―	-14.27%	-28.56%
SKYX	42 Neutral	$135.05M	―	-481.19%	―	5.71%	7.97%

ESS Tech Corporate Events

ESS Tech Sets Deadline for Stockholder Proposals

ESS Tech, Inc. has scheduled its 2025 annual meeting of stockholders for October 6, 2025, and has set a deadline of September 8, 2025, for stockholder proposals to be included in the proxy materials. Proposals or nominations received after this date will not be considered, and any changes to the meeting date will not extend this deadline.

The most recent analyst rating on (GWH) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on ESS Tech stock, see the GWH Stock Forecast page.

ESS Tech Appoints New Chief Operating Officer

ESS Tech, Inc. has appointed Jigish Trivedi as Chief Operating Officer effective August 18, 2025. Mr. Trivedi brings extensive experience from his previous roles at Electric Hydrogen Co. and Micron Technology. His appointment comes with a comprehensive compensation package, including a base salary, bonus potential, and restricted stock units. This strategic hire is expected to bolster ESS Tech’s operational leadership and enhance its market positioning.

The most recent analyst rating on (GWH) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on ESS Tech stock, see the GWH Stock Forecast page.

ESS Tech Appoints Interim CFO After CFO Termination

On August 1, 2025, ESS Tech, Inc. terminated its Chief Financial Officer, Anthony Rabb, without severance. This decision was unrelated to any accounting or regulatory issues. The company has appointed Kate Suhadolnik, the current Controller, as the interim CFO. Ms. Suhadolnik, who has been with the company since 2021, brings 14 years of experience in finance and accounting, including roles at The Standard and Deloitte & Touche LLP.

The most recent analyst rating on (GWH) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on ESS Tech stock, see the GWH Stock Forecast page.

ESS Tech Secures $25 Million Equity Purchase Agreement

On July 9, 2025, ESS Tech, Inc. entered into a Standby Equity Purchase Agreement with YA II PN, LTD, allowing the company to sell up to $25 million of its common stock over a three-year term. This agreement is part of a broader $31 million insider-led funding package aimed at supporting ESS’s strategic shift and strengthening its cash position. Additionally, ESS secured its first Energy Base order for an 8 MWh project, marking significant progress in its strategic pivot to long-duration energy storage solutions. The company also announced a sale and leaseback agreement for its stack assembly line and various financial measures to improve its cash flow and operational efficiency. Despite these efforts, ESS faces challenges with its NYSE listing due to not meeting the minimum market capitalization standards, which could lead to delisting if not addressed.

The most recent analyst rating on (GWH) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on ESS Tech stock, see the GWH Stock Forecast page.