ESS Tech (GWH) AI Stock Analysis

• Market Cap: $13.19M
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -58.05%
• EPS Growth: -6.90%
• Country: US
• Employees: 240
• Sector: Industrials
• Sector Strength: 85
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.50
• Shares Outstanding: 12,103,750
• 10 Day Avg. Volume: 392,396
• 30 Day Avg. Volume: 1,538,569
• PEG Ratio: 0.03
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.34
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: -0.33
• Enterprise Value/Ebitda: -0.05
• 1Y Price Target: $2.67
• Price Target Upside: 144.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 39 Underperform
• Price Target: $1.00 ▼(-8.26%Downside)

ESS Tech's overall stock score is low due to severe financial instability, bearish technical indicators, and critical corporate challenges. While strategic initiatives show promise, they are overshadowed by negative financial performance and valuation metrics.

Positive Factors

Cost Management

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

Product Offering

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

Negative Factors

Competitive Threat

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

Market Capitalization

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. (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 Money

ESS 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 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.

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
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

• Technical Analysis Sentiment: Negative
• Last Price: 1.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.09 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.96, and below the 200-day MA of 4.73, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 36.89 is Neutral, neither overbought nor oversold. The STOCH value of 8.77 is Positive, 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 *	66 Neutral	$4.50B	12.26	5.40%	3.65%	4.17%	-12.02%
ENVX	56 Neutral	$1.58B	―	-85.86%	―	77.59%	2.01%
SLDP	55 Neutral	$346.17M	―	-20.64%	―	3.22%	-33.20%
EOSE	46 Neutral	$1.14B	―	125.43%	―	37.60%	-161.38%
SKYX	44 Neutral	$134.71M	―	-395.45%	―	12.42%	23.63%
NVX	40 Underperform	$170.13M	―	-47.77%	―	-27.50%	-58.61%
GWH	39 Underperform	$13.19M	―	-172.05%	―	-58.05%	-6.90%

ESS Tech Corporate Events

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.

The most recent analyst rating on (GWH) stock is a Buy 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 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.

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 Faces NYSE Non-Compliance Notice

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.