Orion Energy Systems (OESX) AI Stock Analysis

• Market Cap: $55.59M
• Dividend Yield: N/A
• Average Volume (3M): 16.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -12.77%
• EPS Growth: 23.37%
• Country: US
• Employees: 260
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.17
• Shares Outstanding: 3,530,870
• 10 Day Avg. Volume: 22,199
• 30 Day Avg. Volume: 16,930
• PEG Ratio: -90.33T
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 47.91
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 1.20
• Enterprise Value/Ebitda: -9.41
• 1Y Price Target: $20.00
• Price Target Upside: 29.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $19.00 ▲(22.66% Upside)

Orion Energy Systems' stock score is primarily influenced by its financial challenges, including declining revenues and profitability issues. However, the technical analysis shows strong upward momentum, and the earnings call highlighted significant improvements in gross profit and new business wins. The valuation remains a concern due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Gross Profit Increase

The significant increase in gross profit indicates improved operational efficiency and cost management, strengthening the company's financial foundation.

Positive Adjusted EBITDA

Consistent positive adjusted EBITDA reflects the company's ability to generate earnings from operations, enhancing long-term financial stability.

Significant New Business Wins

Winning substantial new contracts strengthens market position and provides a stable revenue stream, supporting future growth initiatives.

Negative Factors

Declining Revenue Growth

A significant decline in revenue growth indicates challenges in market demand and sales execution, potentially impacting long-term business viability.

Rising Debt Levels

Higher leverage increases financial risk and limits flexibility, potentially straining cash flow and hindering strategic investments.

Net Loss

Ongoing net losses highlight profitability challenges, necessitating strategic adjustments to achieve sustainable financial health.

Orion Energy Systems Business Overview & Revenue Model

Company Description

Orion Energy Systems, Inc. researches, designs, develops, manufactures, markets, sells, installs, and implements energy management systems for commercial office and retail, exterior area lighting, and industrial applications in North America. The company operates through three segments: Orion Services Group, Orion Distribution Services, and Orion U.S. Markets. It offers interior light emitting diode (LED) high bay fixtures; smart building control systems, which provide lighting control options and data intelligence capabilities for building managers; and LED troffer door retrofit for use in office or retail grid ceilings. The company also offers various other LED and HIF fixtures for lighting and energy management needs comprising fixtures for agribusinesses, parking lots, roadways, retail, mezzanine, outdoor applications, and private label resale. In addition, it provides maintenance, repair, and replacement services; offers lighting-related energy management services, such as site assessment, site field verification, utility incentive and government subsidy management, engineering design, project management, installation, facility design commissioning, and recycling; and sells and distributes replacement lamps and fixture components into the after-market. The company serves customers directly and through independent sales agencies and distributors, national account end-users, federal and state government facilities, regional account end-users, electrical distributors, electrical contractors, and energy service companies. Orion Energy Systems, Inc. was incorporated in 1996 and is headquartered in Manitowoc, Wisconsin.

How the Company Makes Money

Orion Energy Systems generates revenue primarily through the sale of energy-efficient lighting solutions and related products. The company’s key revenue streams include direct sales of LED lighting products, installation services, and energy management systems. Additionally, OESX benefits from long-term contracts with clients for maintenance and support services. Strategic partnerships with large-scale distributors and participation in government energy efficiency programs also play a significant role in enhancing their earnings. By leveraging incentives and rebates for energy-efficient upgrades, Orion can further attract customers and increase sales, thereby contributing to its overall revenue model.

Orion Energy Systems Financial Statement Overview

Summary

Orion Energy Systems is facing significant financial challenges, with declining revenues and profitability issues. The balance sheet shows increased leverage, which could pose risks if not managed properly. While there is some improvement in cash flow, the overall financial health of the company remains weak, requiring strategic adjustments to improve performance and stability.

Income Statement

Orion Energy Systems has experienced a significant decline in revenue, with a TTM revenue growth rate of -41.5%. The gross profit margin is relatively stable at 27.5%, but the company is struggling with profitability, as indicated by negative net profit and EBIT margins. This suggests challenges in managing costs and achieving operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.10, indicating higher leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the increasing debt levels and declining equity suggest a weakening financial position.

Cash Flow

There is a notable improvement in free cash flow, with a growth rate of 489.1% in the TTM period. However, the operating cash flow to net income ratio remains low, indicating that cash generation from operations is still a concern. The free cash flow to net income ratio is relatively high, suggesting better cash management despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.95M	79.72M	90.58M	77.38M	124.38M	116.84M
Gross Profit	23.57M	20.24M	20.91M	17.51M	33.91M	30.12M
EBITDA	-3.01M	-8.32M	-8.38M	-14.00M	9.88M	8.13M
Net Income	-6.24M	-11.80M	-11.67M	-34.34M	6.09M	26.13M
Balance Sheet
Total Assets	47.90B	52.46M	63.17M	71.58M	86.82M	92.82M
Cash, Cash Equivalents and Short-Term Investments	5.16M	5.97M	5.16M	15.99M	14.47M	19.39M
Total Debt	0.00	10.32M	12.11M	11.85M	3.07M	3.34M
Total Liabilities	36.52B	40.58M	40.63M	38.33M	21.72M	34.75M
Stockholders Equity	11.38B	11.88M	22.54M	33.25M	65.10M	58.07M
Cash Flow
Free Cash Flow	3.98M	494.00K	-10.93M	-2.89M	-641.00K	776.00K
Operating Cash Flow	4.37M	599.00K	-10.09M	-2.29M	-113.00K	1.73M
Investing Cash Flow	-339.00K	128.00K	-731.00K	-6.20M	-4.92M	-946.00K
Financing Cash Flow	-4.24M	90.00K	-14.00K	10.01M	104.00K	-10.14M

Orion Energy Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OESX, the sentiment is Neutral. The current price of 15.49 is below the 20-day moving average (MA) of 16.50, above the 50-day MA of 13.33, and above the 200-day MA of 8.60, indicating a neutral trend. The MACD of 0.68 indicates Positive momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 35.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OESX.

Orion Energy Systems 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%
OESX	59 Neutral	$55.59M	-8.23	-45.94%	―	-12.77%	23.37%
PPSI	48 Neutral	$45.38M	-5.85	―	―	―	―
IPWR	44 Neutral	$26.22M	-2.62	-74.44%	―	-69.65%	11.41%
POLA	40 Neutral	$5.08M	-0.55	-119.92%	―	-44.32%	-49.47%
SDST	26 Underperform	$32.06M	-0.79	―	―	―	61.78%

Orion Energy Systems Corporate Events

Orion Energy Systems Finalizes Acquisition Agreements

On September 30, 2025, Orion Energy Systems finalized several financial and operational agreements related to its acquisition of Voltrek, LLC. The company settled its fiscal 2024 earnout obligations with payments totaling $875,000 and issued $1 million in common stock to Kathleen Connors for fiscal 2025 obligations. A subordinated loan agreement was established with Final Frontier to defer remaining earnout payments, with monthly principal and interest payments scheduled through July 2027. Additionally, a security agreement was made to secure obligations, subordinated to Bank of America’s senior credit facilities. The company also entered into a support agreement with Final Frontier and Connors, restricting their influence on company affairs, and granted Connors a non-voting board observer role.