ESS Tech (GWH) AI Stock Analysis

• Market Cap: $22.19M
• Dividend Yield: N/A
• Average Volume (3M): 388.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.98
• Revenue Growth: -16.98%
• EPS Growth: 2.43%
• Country: US
• Employees: 240
• Sector: Industrials
• Sector Strength: 79
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.90
• Shares Outstanding: 14,314,663
• 10 Day Avg. Volume: 238,992
• 30 Day Avg. Volume: 388,210
• 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: 0.70
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: -0.35
• Enterprise Value/Ebitda: -0.19
• 1Y Price Target: $1.83
• Price Target Upside: 23.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: $1.50 ▲(1.35% Upside)

ESS Tech's overall stock score is primarily impacted by its weak financial performance and unattractive valuation, reflecting ongoing losses and liquidity challenges. While there are positive developments in cost management and strategic leadership, the technical indicators and financing challenges present significant risks. The company's ability to secure additional capital and improve profitability will be crucial for future success.

Positive Factors

Market Expansion

Beginning to see traction with Energy Base offering, with a 50MWh award.

Product Development

Management has made meaningful progress in reducing the costs of its Energy Warehouse and Energy Center offerings.

Product Offering

The Energy Base offering positions the company better for higher power and longer duration applications.

Negative Factors

Competitive Threats

The company is facing a competitive threat from lithium-ion batteries, which are becoming increasingly cost-effective for long-duration energy storage.

NYSE Listing

Potential delisting from NYSE given ESS's market capitalization is below the $50mn minimum.

Revenue Performance

Lower than expected revenue this quarter, due to continued delays with a customer in Australia that has not been able to secure funding.

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 is facing significant financial challenges across all statements. The company struggles with profitability, leverage, and cash flow management, raising 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.16M	6.29M	7.54M	894.00K	0.00	0.00
Gross Profit	-43.90M	-45.36M	-12.96M	-1.76M	-572.00K	-436.00K
EBITDA	-83.41M	-85.07M	-79.39M	-103.97M	-60.03M	-16.96M
Net Income	-85.94M	-86.22M	-77.58M	-77.97M	-324.85M	-30.48M
Balance Sheet
Total Assets	53.58M	71.81M	143.23M	173.55M	250.20M	9.02M
Cash, Cash Equivalents and Short-Term Investments	12.80M	31.60M	108.06M	139.81M	238.94M	4.90M
Total Debt	1.29M	1.69M	2.54M	5.87M	3.77M	5.70M
Total Liabilities	41.50M	42.93M	39.88M	36.58M	45.33M	36.91M
Stockholders Equity	12.08M	28.88M	103.36M	136.97M	204.87M	-27.89M
Cash Flow
Free Cash Flow	-78.65M	-79.51M	-60.69M	-95.80M	-54.62M	-17.15M
Operating Cash Flow	-71.55M	-72.22M	-54.90M	-81.62M	-51.85M	-16.64M
Investing Cash Flow	43.32M	64.76M	15.07M	-117.88M	-2.77M	-502.00K
Financing Cash Flow	242.00K	174.00K	25.65M	-4.07M	288.45M	4.72M

ESS Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.48 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 1.61, and below the 200-day MA of 3.37, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 23.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GWH.

ESS Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
SLDP	58 Neutral	$853.85M	―	-22.60%	―	14.82%	-19.27%
EOSE	56 Neutral	$1.80B	―	125.43%	―	128.49%	-697.81%
ENVX	54 Neutral	$2.06B	―	-68.46%	―	60.04%	52.49%
SKYX	49 Neutral	$134.85M	―	-481.19%	―	5.71%	7.97%
NVX	44 Neutral	$227.13M	―	-45.13%	―	-14.27%	-28.56%
GWH	43 Neutral	$22.19M	―	-207.48%	―	-16.98%	2.43%

ESS Tech Corporate Events

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.

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.

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.

ESS Tech Secures New Orders and Seeks Financing

ESS Tech, Inc. has closed additional orders for its Energy Warehouse and Energy Center products as part of its inventory movement strategy, alongside its first core component sale for the Energy Base product. These transactions, expected to generate approximately $2.5 million in revenue and $1 million from Advanced Manufacturing Production Tax Credits in the second quarter, will enhance the company’s cash position but require further funding to continue operations. The company is actively seeking additional financing options, though there is no guarantee of success.

ESS Tech Faces Financing Challenges Amid WARN Notices

On May 27, 2025, ESS Tech, Inc. announced that it has not secured the necessary financing to avoid a potential shutdown, prompting the issuance of WARN Act notices to employees and officials. Despite this setback, the company remains committed to exploring financing options and executing its business strategy, having recently secured a project with a major U.S. utility and engaging in further discussions for additional projects.