Orion Energy Systems (OESX) AI Stock Analysis

• Market Cap: $20.15M
• Dividend Yield: N/A
• Average Volume (3M): 100.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -11.99%
• EPS Growth: 0.06%
• Country: US
• Employees: 260
• Sector: Industrials
• Sector Strength: 95
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.09
• Shares Outstanding: 33,688,164
• 10 Day Avg. Volume: 111,087
• 30 Day Avg. Volume: 100,932
• PEG Ratio: 0.03
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.87
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 1.16
• Enterprise Value/Ebitda: -1.08
• 1Y Price Target: $1.75
• Price Target Upside: 191.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $0.50 ▼(-16.67%Downside)

Orion Energy Systems faces significant financial challenges, with declining revenues and persistent losses impacting the stock's overall appeal. Technical indicators are weak, and valuation is hampered by negative earnings. However, achievements in the EV charging business and cost reductions offer some optimism but are not enough to offset broader challenges.

Positive Factors

Gross Margins

Gross margins for F3Q25 improved to 29.4% due to profitability improvements in the maintenance and lighting segments through price and cost actions.

Sales Growth Outlook

Management expects to capture some of the delayed LED business in the second half of its fiscal year, with outlook provided for 10% expected sales growth in FY2025.

Negative Factors

Delayed Projects

Orion Energy's F3Q25 revenues were impacted by delayed LED lighting projects and general market softness reflecting customer uncertainty concerning the economy.

Government Contracts

Some pressure on the stock may come from Orion Energy's history of winning and deploying government-related contracts in an uncertain environment.

Orion Energy Systems Business Overview & Revenue Model

Company Description

Orion Energy Systems, Inc. (OESX) is a leading provider of energy-efficient LED lighting and controls systems. The company operates primarily in the energy efficiency sector, offering comprehensive lighting solutions that aim to improve energy performance and reduce costs for commercial, industrial, and retail clients. Orion's core products include high-performance LED fixtures, smart building control systems, and other energy management solutions that help organizations optimize their energy usage and achieve sustainability goals.

How the Company Makes Money

Orion Energy Systems makes money through the design, manufacture, and sale of LED lighting systems and energy management solutions. Their revenue model is primarily based on selling energy-efficient lighting products and related services directly to end-users in various sectors, including commercial, industrial, and retail. The company also generates revenue through installation and project management services, ensuring that clients' lighting systems are efficiently integrated and optimized. Additionally, Orion engages in significant partnerships with contractors and distributors to expand their market reach and drive sales. Their ability to offer comprehensive lighting solutions tailored to specific client needs is a crucial factor in their earnings, allowing them to capture a share of the growing market for energy-efficient technologies.

Orion Energy Systems Financial Statement Overview

Summary

Orion Energy Systems exhibits financial challenges with declining revenues, persistent losses, and margin pressure. The balance sheet is weakened by cumulative losses, posing liquidity risks. Although there's a positive trend in cash flow, it remains insufficient for a strong recovery.

Income Statement

Orion Energy Systems has experienced declining revenue and profitability over recent years. The gross profit margin has decreased from previous years, indicating pressure on cost management or pricing. Consistent net losses and negative EBIT margins highlight ongoing operational challenges. The revenue growth rate is negative, reflecting a contraction in business scale.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, reflecting some reliance on debt financing, although it remains manageable. Equity has been eroding over the past periods due to accumulated losses, impacting the equity ratio negatively. This indicates potential risks related to financial stability and liquidity.

Cash Flow

Cash flow analysis shows improvement in free cash flow, although it remains limited. The operating cash flow to net income ratio is volatile, highlighting fluctuations in operational cash generation. While free cash flow has turned positive, it remains insufficient to cover historical losses fully.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	79.72M	90.58M	77.38M	124.38M	116.84M
Gross Profit	20.24M	20.91M	17.51M	33.91M	30.12M
EBITDA	-8.32M	-8.29M	-14.03M	9.93M	8.18M
Net Income	-11.80M	-11.67M	-34.34M	6.09M	26.13M
Balance Sheet
Total Assets	52.46M	63.17M	71.58M	86.82M	92.82M
Cash, Cash Equivalents and Short-Term Investments	5.97M	5.16M	15.99M	14.47M	19.39M
Total Debt	10.32M	12.11M	10.02M	35.00K	49.00K
Total Liabilities	40.58M	40.63M	38.33M	21.72M	34.75M
Stockholders Equity	11.88M	22.54M	33.25M	65.10M	58.07M
Cash Flow
Free Cash Flow	494.00K	-10.93M	-2.89M	-641.00K	776.00K
Operating Cash Flow	599.00K	-10.09M	-2.29M	-113.00K	1.73M
Investing Cash Flow	128.00K	-731.00K	-6.20M	-4.92M	-946.00K
Financing Cash Flow	90.00K	-14.00K	10.01M	104.00K	-10.14M

Orion Energy Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.60
• 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 OESX, the sentiment is Neutral. The current price of 0.6 is above the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.62, and below the 200-day MA of 0.77, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 55.13 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 *	65 Neutral	$11.18B	15.79	5.49%	1.92%	3.14%	-24.90%
PPSI	58 Neutral	$39.03M	―	-43.18%	―	-19.60%	-483.35%
OESX	45 Neutral	$20.15M	―	-68.57%	―	-11.99%	0.06%
GWH	43 Neutral	$26.40M	―	-172.05%	―	-58.05%	-6.90%
SDST	26 Underperform	$44.46M	―	-860.70%	―	―	-12310.81%

Orion Energy Systems Corporate Events

Orion Energy Systems Implements Cost-Saving Salary Reductions

On February 11, 2024, Orion Energy Systems announced voluntary salary and retainer reductions for its executive officers and board members as part of temporary cost-saving measures. The company also reported improved financial results for the fiscal 2025 third quarter, including a gross margin increase to 29.4%, reduced net loss, and break-even adjusted EBITDA. Orion’s reorganization into two business units aims to enhance sales and marketing effectiveness, aligning with its focus on long-term growth. Despite lowering its FY 2025 revenue outlook due to project delays and market conditions, Orion’s strategic moves, such as cost reduction and business realignment, position it for better performance in FY 2026.