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ESS Tech (GWH)
NYSE:GWH
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ESS Tech
(NYSE:GWH)
Rating:39Underperform
Price Target:
$2.00
▼(-0.50%Downside)
Positive Factors
Cost Management
Management has made meaningful progress in reducing the costs of its Energy Warehouse and Energy Center offerings.
Financing
ESS secured the first $20mn tranche of its financing package from EXIM to build out its manufacturing footprint.
Product Development
The first EC with Portland General Electric is operational and achieving high reliability and availability.
Negative Factors
Corporate Governance
The CEO's departure raises concerns about potential challenges in the company's product ramp-up and overall financial outlook.
Financial Performance
Lower than expected revenue this quarter, due to continued delays with a customer in Australia that has not been able to secure funding.
Market Competition
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. SPDR S&P 500 ETF (SPY)
Market Cap
$24.33M
Dividend YieldN/A
Average Volume (3M)76.76K
Price to Earnings (P/E)―
Beta (1Y)1.90
Revenue Growth-58.05%
EPS Growth-6.90%
CountryUS
Employees240
SectorIndustrials
Sector Strength93
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-1.50
Shares Outstanding12,103,750
10 Day Avg. Volume158,627
30 Day Avg. Volume76,762
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.93
Price to Sales (P/S)0.00
P/FCF Ratio-0.34
Enterprise Value/Market Cap0.64
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit-0.33
Enterprise Value/Ebitda-0.05
Forecast
1Y Price Target
$2.67Price Target Upside32.84% 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 Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: -21.48%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment. While there were positive developments such as the successful launch of the energy base product and strategic shifts towards longer duration storage, these were overshadowed by significant challenges in capital raising and ongoing negative EBITDA. The company is facing a challenging capital markets environment, yet it shows promise with its strategic direction and domestic manufacturing capabilities.Q1-2025 Updates
Positive Updates
Successful Energy Base Product Launch
ESS successfully launched the energy base product, securing early momentum by winning a competitive 50 megawatt hour, 5 megawatt pilot project with an Arizona public utility. This indicates significant emerging demand for non-lithium ion longer duration storage technologies.
Strategic Shift to Longer Duration Storage
ESS's strategic pivot to focus on longer duration storage opportunities (10+ hours) with the energy base product is yielding results. Proposal activity has increased substantially, totaling approximately 1.2 gigawatt hours and $400 million in the last two quarters.
Strong Domestic Manufacturing Position
ESS has a high degree of American-made inputs, with over 98% of components sourced domestically. This positions them well amidst changing tariff landscapes and legislative support for domestic battery manufacturing.
Negative Updates
Challenging Capital Markets Environment
ESS has not completed its capital raise, and the current capital markets environment is challenging. The company is aggressively pursuing all available options to extend its runway.
Negative EBITDA and Cash Flow Concerns
ESS reported an adjusted EBITDA of negative $15 million for Q1 2025, with efforts to transition to positive EBITDA and cash flow anticipated only in the next few years.
Limited Current Revenue and Customer Payment Structures
Q1 revenue was only $600,000, with future revenue contingent on project completions. ESS relies on customer payments upon contracting to support material purchases and offset costs.
Company Guidance
During the first quarter of fiscal year 2025, ESS reported revenue of $600,000, with 65% from equipment and 35% from site preparation, primarily tied to final deliveries of battery systems to a Florida utility customer. The company anticipates maintaining similar revenue levels in the first half of the year, with a ramp expected in the second half based on energy-based sales. ESS secured a pilot project in Arizona for a 50 MWh, 5 MW non-lithium project, with potential for a 2 GWh, 200 MW follow-on project. The company is focusing on its energy-based product, which offers 10+ hour storage and competitive pricing, and is supported by positive legislative tailwinds for domestic battery manufacturing. Despite current challenges in capital raising, ESS is pursuing various financing options to extend its runway and is working towards a strategic capital raise to strengthen its balance sheet. The company reported a GAAP cost of revenue of $8.7 million and adjusted EBITDA of negative $15 million for the quarter, with ongoing efforts to reduce costs and improve cash flow.ESS Tech Financial Statement Overview
Summary
ESS Tech is facing significant financial challenges across all statements. The company is struggling with profitability, leverage, and cash flow management, which raises concerns about its financial health and sustainability in the long term.Income Statement
ESS Tech shows an overall weak performance on the income statement. The Gross Profit Margin and Net Profit Margin are negative, indicating the company is not profitable. The company has experienced declining revenue, with a sharp decrease in the Revenue Growth Rate from 2023 to 2024. Negative EBIT and EBITDA margins further highlight financial challenges.25
Negative
Balance Sheet
The balance sheet reveals financial instability, with a low Equity Ratio and fluctuating Stockholders' Equity over the years. The Debt-to-Equity Ratio is quite high, suggesting significant leverage. However, the company has managed to maintain positive Stockholders' Equity in recent years.40
Negative
Cash Flow
ESS Tech faces cash flow challenges, with negative Free Cash Flow and high Operating Cash Flow deficits. The Free Cash Flow to Net Income Ratio is unfavorable, indicating cash flow issues in relation to earnings.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.29M | 7.54M | 894.00K | 0.00 | 0.00 | Gross Profit |
| -45.36M | -12.96M | -1.76M | -572.00K | -436.00K | EBIT |
| -89.80M | -85.91M | -105.49M | -60.90M | -17.39M | EBITDA |
| -85.07M | -79.39M | -103.97M | -60.03M | -16.96M | Net Income Common Stockholders |
| -86.22M | -77.58M | -77.97M | -324.85M | -30.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 31.60M | 108.06M | 139.81M | 238.94M | 4.90M | Total Assets |
| 71.81M | 143.23M | 173.55M | 250.20M | 9.02M | Total Debt |
| 1.69M | 2.54M | 5.87M | 3.77M | 5.70M | Net Debt |
| -11.65M | -17.63M | -28.90M | -235.17M | 796.00K | Total Liabilities |
| 42.93M | 39.88M | 36.58M | 45.33M | 36.91M | Stockholders Equity |
| 28.88M | 103.36M | 136.97M | 204.87M | -27.89M |
| Cash Flow | Free Cash Flow | |||
| -79.51M | -60.69M | -95.80M | -54.62M | -17.15M | Operating Cash Flow |
| -72.22M | -54.90M | -81.62M | -51.85M | -16.64M | Investing Cash Flow |
| 64.76M | 15.07M | -117.88M | -2.77M | -502.00K | Financing Cash Flow |
| 174.00K | 25.65M | -4.07M | 288.45M | 4.72M |
ESS Tech Technical Analysis
Negative
2.01
Price Trends
2.52
Negative
3.68
Negative
5.27
Negative
Market Momentum
-0.15
Positive
41.32
Neutral
13.11
Positive
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 2.01 is below the 20-day moving average (MA) of 2.21, below the 50-day MA of 2.52, and below the 200-day MA of 5.27, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 13.11 is Positive, 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 1 New Risks
1.
The ultimate effect of the 1-for-15 reverse stock split on the market price of our common stock cannot be predicted with any certainty and shares of our common stock have likely experienced decreased liquidity as a result of such reverse stock split. Q3, 2024
ESS Tech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $4.41B | 12.06 | 5.22% | 249.80% | 4.09% | -12.16% | |
58 Neutral | $270.84M | ― | -20.64% | ― | 3.22% | -33.20% | |
50 Neutral | $138.61M | ― | -395.45% | ― | 12.42% | 23.63% | |
49 Neutral | $1.49B | ― | -85.86% | ― | 77.59% | 2.01% | |
45 Neutral | $1.45B | ― | 125.43% | ― | 37.60% | -161.38% | |
42 Neutral | $200.07M | ― | -47.77% | ― | -27.50% | -58.61% | |
39 Underperform | $24.33M | ― | -172.05% | ― | -58.05% | -6.90% |
* Industrials Sector Average
Performance Comparison
GWH
ESS Tech
2.01
-9.89
-83.11%
SKYX
SQL Technologies
1.31
0.36
37.89%
EOSE
Eos Energy Enterprises
5.89
5.19
741.43%
ENVX
Enovix
8.03
-2.75
-25.51%
SLDP
Solid Power
1.66
-0.11
-6.21%
NVX
NOVONIX Ltd Sponsored ADR
1.30
-0.71
-35.32%
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.
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.