Orion Energy Systems (OESX)
NASDAQ:OESX
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Orion Energy Systems
(NASDAQ:OESX)
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Rating:56Neutral
Price Target:
$10.00
▼(-0.40% Downside)
Action:ReiteratedDate:03/14/26
The score is held back mainly by weak technicals (downtrend with negative MACD) and a stretched valuation (high P/E with no dividend). Offsetting these, fundamentals show improving cash generation and revenue/margin recovery, and the latest earnings call was constructive with raised guidance, sustained positive adjusted EBITDA, and meaningful order momentum—though execution risk and uneven cash conversion remain key watch items.
Positive Factors
Improved cash generation
TTM operating and free cash flow turned strongly positive after prior multi-year outflows. Durable positive cash generation increases internal funding for projects, reduces reliance on external financing, and provides flexibility to invest in backlog execution and margin-improving initiatives over the next 2–6 months.
Negative Factors
Persistent historical losses
Multiple years of negative ROE and loss-making annual results indicate capital has not generated consistent returns. That legacy of weak profitability reduces margin for error, constrains reinvestment capacity, and means recent improvements must be sustained to erase structural capital inefficiency risks.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
TTM operating and free cash flow turned strongly positive after prior multi-year outflows. Durable positive cash generation increases internal funding for projects, reduces reliance on external financing, and provides flexibility to invest in backlog execution and margin-improving initiatives over the next 2–6 months.
Read all positive factors
Orion Energy Systems (OESX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.70M
Dividend YieldN/A
Average Volume (3M)37.17K
Price to Earnings (P/E)83.1
Beta (1Y)0.98
Revenue Growth-12.77%
EPS Growth23.37%
CountryUS
Employees260
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.04
Shares Outstanding4,052,863
10 Day Avg. Volume34,424
30 Day Avg. Volume37,167
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.99
Price to Sales (P/S)0.30
P/FCF Ratio47.91
Enterprise Value/Market Cap-120.83
Enterprise Value/Revenue-57.42
Enterprise Value/Gross Profit-192.30
Enterprise Value/Ebitda3.05K
Forecast
1Y Price Target
$20.00Price Target Upside99.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.46
Revenue Forecast (FY)$84.20M
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 ...
How the Company Makes Money
Orion Energy Systems primarily makes money by selling LED lighting products and delivering turnkey lighting retrofit projects to commercial and industrial customers. Revenue is generally generated through (1) product sales of lighting fixtures and...
Orion Energy Systems Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive trajectory: revenue and margins improved, Orion returned to GAAP net income for the quarter, adjusted EBITDA strengthened for a fifth straight quarter, management raised FY'26 guidance and set ambitious FY'27 targets, and the company secured several large orders (including a $14–15M exterior lighting project and a $4M EV charging installation). These positives are tempered by a decline in the LED lighting top line, a year‑to‑date drop in operating cash flow, slightly reduced available liquidity versus year-end (partially mitigated by a $6.4M equity raise), and continued execution/timing risks on large projects and early-stage infrastructure initiatives. On balance, the highlights significantly outweigh the lowlights given improved profitability, margin expansion and upgraded guidance.Positive Updates
Revenue Growth in Q3
Reported fiscal Q3 revenue of $21.1M versus $19.6M in Q3'25, an increase of $1.5M or approximately +7.7% year-over-year.
Negative Updates
LED Lighting Revenue Decline
LED lighting segment revenue declined to $12.1M in Q3'26 from $13.2M in Q3'25, a decrease of $1.1M or about -8.3% year-over-year, due to decreased project activity and ESCO channel sales (partially offset by distribution growth).
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth in Q3
Reported fiscal Q3 revenue of $21.1M versus $19.6M in Q3'25, an increase of $1.5M or approximately +7.7% year-over-year.
Read all positive updates
Company Guidance
Orion raised its fiscal 2026 guidance to $84–$86M of revenue with positive adjusted EBITDA (up from prior ~$84M “at or approaching” positive) and set fiscal 2027 targets of $95–$97M of revenue with positive adjusted EBITDA; the uptick reflects Q3 results of $21.1M revenue, the company’s fifth straight quarter of positive adjusted EBITDA ($761k), net income of $160k ($0.04/share), and an overall gross margin of 30.9% (LED $12.1M/30.6%, maintenance $4.4M/25.5%, EV $4.7M/36.7%), with operating expenses down to $6.1M (from $7.0M) and trailing‑12‑month adjusted EBITDA of $1.6M on $81.5M sales; liquidity and balance‑sheet metrics include YTD operating cash of $400k, a $1.3M net paydown of the revolver, net working capital of $8.9M, available liquidity of $11.8M (vs. $13.0M at year‑end), and ~$6.4M of net proceeds from issuing 500,000 shares; management cited specific near‑term backlog including a $14–$15M exterior lighting project (majority of revenue in 1H FY27, completion by end‑July) and a $4M/105‑charger Boston Public Schools EV install, and reiterated expectations for a strong Q4 and continued profitable growth into FY27.Orion Energy Systems Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 81.45M | 79.72M | 90.58M | 77.38M | 124.38M | 116.84M |
| Gross Profit | 24.32M | 20.24M | 20.91M | 17.51M | 33.91M | 30.12M |
| EBITDA | -1.53M | -8.32M | -8.38M | -14.00M | 9.88M | 8.13M |
| Net Income | -4.58M | -11.80M | -11.67M | -34.34M | 6.09M | 26.13M |
Balance Sheet | ||||||
| Total Assets | 48.25M | 52.46M | 63.17M | 71.58M | 86.82M | 92.82M |
| Cash, Cash Equivalents and Short-Term Investments | 4.72B | 5.97M | 5.16M | 15.99M | 14.47M | 19.39M |
| Total Debt | 9.84M | 10.32M | 12.11M | 11.85M | 3.07M | 3.34M |
| Total Liabilities | 36.41M | 40.58M | 40.63M | 38.33M | 21.72M | 34.75M |
| Stockholders Equity | 11.84M | 11.88M | 22.54M | 33.25M | 65.10M | 58.07M |
Cash Flow | ||||||
| Free Cash Flow | -401.00K | 494.00K | -10.93M | -2.89M | -641.00K | 776.00K |
| Operating Cash Flow | -292.00K | 599.00K | -10.09M | -2.29M | -113.00K | 1.73M |
| Investing Cash Flow | -67.00K | 128.00K | -731.00K | -6.20M | -4.92M | -946.00K |
| Financing Cash Flow | -2.42M | 90.00K | -14.00K | 10.01M | 104.00K | -10.14M |
Orion Energy Systems Technical Analysis
Negative
10.04
Price Trends
13.24
Negative
13.94
Negative
10.55
Negative
Market Momentum
-1.04
Negative
32.05
Neutral
21.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OESX, the sentiment is Negative. The current price of 10.04 is below the 20-day moving average (MA) of 10.43, below the 50-day MA of 13.24, and below the 200-day MA of 10.55, indicating a bearish trend. The MACD of -1.04 indicates Negative momentum. The RSI at 32.05 is Neutral, neither overbought nor oversold. The STOCH value of 21.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OESX.
Orion Energy Systems Risk Analysis
Orion Energy Systems disclosed 40 risk factors in its most recent earnings report. Orion Energy Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orion Energy Systems Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $38.70M | 83.09 | -39.87% | ― | -12.77% | 23.37% | |
55 Neutral | $37.83M | -6.78 | 96.55% | ― | ― | ― | |
51 Neutral | $24.28M | -1.45 | 209.00% | ― | ― | 61.78% | |
45 Neutral | $38.57M | -2.67 | -91.56% | ― | -69.65% | 11.41% | |
40 Underperform | $4.65M | -0.51 | -119.92% | ― | -44.32% | -49.47% |
* Industrials Sector Average
OESX
Orion Energy Systems
10.04
2.59
34.77%
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SDST
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Orion Energy Systems Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Orion Energy Systems Completes Underwritten Equity Offering
Positive
Feb 2, 2026
On January 29, 2026, Orion Energy Systems entered into an underwriting agreement with Craig-Hallum Capital Group LLC for a firm underwritten public offering of 500,000 shares of its common stock, which closed on February 2, 2026 and generated appr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.