ESS Tech (GWH) AI Stock Analysis

• Market Cap: $17.80M
• Dividend Yield: N/A
• Average Volume (3M): 331.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: -58.05%
• EPS Growth: -6.90%
• Country: US
• Employees: 240
• Sector: Industrials
• Sector Strength: 93
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.50
• Shares Outstanding: 12,896,146
• 10 Day Avg. Volume: 263,493
• 30 Day Avg. Volume: 331,520
• PEG Ratio: -0.24
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.20
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: -0.19
• Enterprise Value/Ebitda: -0.03
• 1Y Price Target: $2.50
• Price Target Upside: 95.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 44 Neutral
• Price Target: $1.50 ▲(17.19%Upside)

The overall score of 44 reflects ESS Tech's significant financial and operational challenges, including negative margins, high leverage, and recent financing issues, which overshadow the positive aspects such as strategic direction and domestic manufacturing capabilities.

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 Threats

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., 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 shows significant financial challenges with negative profitability margins, high leverage, and cash flow issues. The overall financial health is weak, raising concerns about long-term sustainability.

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
EBITDA	-85.07M	-79.39M	-103.97M	-60.03M	-16.96M
Net Income	-86.22M	-77.58M	-77.97M	-324.85M	-30.48M
Balance Sheet
Total Assets	71.81M	143.23M	173.55M	250.20M	9.02M
Cash, Cash Equivalents and Short-Term Investments	31.60M	108.06M	139.81M	238.94M	4.90M
Total Debt	1.69M	2.54M	5.87M	3.77M	5.70M
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: Neutral
• Last Price: 1.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWH, the sentiment is Neutral. The current price of 1.28 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.58, and below the 200-day MA of 4.26, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 22.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GWH.

ESS Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥255.19B	13.58	8.48%	3.01%	6.34%	13.16%
SLDP	56 Neutral	$478.90M	―	-20.64%	―	3.22%	-33.20%
ENVX	55 Neutral	$2.81B	―	-85.86%	―	60.23%	51.95%
EOSE	54 Neutral	$1.27B	―	125.43%	―	37.60%	-161.38%
NVX	48 Neutral	$168.22M	―	-47.77%	―	-27.50%	-58.61%
GWH	44 Neutral	$17.80M	―	-172.05%	―	-58.05%	-6.90%
SKYX	44 Neutral	$109.05M	―	-395.45%	―	12.42%	23.63%

ESS Tech Corporate Events

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.

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.