Orion Energy Systems (OESX) AI Stock Analysis

• Market Cap: $31.75M
• Dividend Yield: N/A
• Average Volume (3M): 16.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• 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: 3,520,271
• 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: 0.89
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 1.20
• Enterprise Value/Ebitda: -9.41
• 1Y Price Target: $18.00
• Price Target Upside: 41.96% 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: $13.00 ▲(2.52% Upside)

The overall stock score of 59 reflects a company with significant financial challenges, as indicated by weak financial performance and valuation metrics. However, the technical analysis shows strong upward momentum, and the earnings call highlighted improvements in profitability and new business wins, which provide some optimism. The lack of corporate events and the negative P/E ratio are notable concerns.

Positive Factors

Gross Profit Improvement

The significant increase in gross profit indicates improved cost management and operational efficiency, which can enhance profitability over time.

New Business Wins

Securing substantial new contracts strengthens Orion's market position and provides a stable revenue stream, supporting long-term growth.

EV Charging Revenue Growth

The growth in EV charging revenue and high margins reflect Orion's successful expansion into new markets, enhancing future revenue potential.

Negative Factors

Declining Revenue

The sharp decline in revenue growth indicates challenges in market demand or competitive pressures, which could impact long-term financial stability.

Increased Leverage

Higher leverage can strain financial resources and limit strategic flexibility, posing risks to long-term financial health if not managed properly.

LED Lighting Revenue Decline

The decline in LED lighting revenue suggests potential market saturation or competitive challenges, impacting a core business segment.

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 through several key streams: the sale of LED lighting products, energy efficiency services, and solar energy solutions. The company earns money by selling its proprietary lighting systems directly to customers and through partnerships with distributors and contractors. Additionally, Orion offers energy consulting services, conducting audits and evaluations to recommend optimal energy solutions. The company also benefits from various government and utility incentives aimed at promoting energy efficiency, which can enhance customer adoption of its products. Significant partnerships with energy companies and participation in renewable energy programs further contribute to its earnings, allowing it to expand its market reach and drive sales.

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	5.16B	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	996.99M	494.00K	-10.93M	-2.89M	-641.00K	776.00K
Operating Cash Flow	1.31B	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: Positive
• Last Price: 12.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OESX, the sentiment is Positive. The current price of 12.68 is above the 20-day moving average (MA) of 9.67, above the 50-day MA of 8.93, and above the 200-day MA of 7.48, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 72.80 is Negative, neither overbought nor oversold. The STOCH value of 89.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$31.75M	-3.20	-45.94%	―	-12.77%	23.37%
PPSI	49 Neutral	$46.27M	―	―	―	―	―
IPWR	47 Neutral	$42.83M	―	-64.46%	―	-86.56%	20.19%
POLA	45 Neutral	$9.29M	-2.03	-49.34%	―	0.13%	45.00%
SDST	26 Underperform	$35.10M	-0.84	―	―	―	25.87%

Orion Energy Systems Corporate Events

Orion Energy Sees Improved Margins and Reduced Losses

Orion Energy Systems, Inc., a provider of energy-efficient LED lighting, EV charging stations, and maintenance services, operates in the clean tech sector, focusing on sustainable solutions to enhance business performance. In its fiscal 2026 second quarter, Orion reported a slight increase in total revenue to $19.9 million, with significant improvements in gross profit margin and a reduced net loss compared to the previous year. The company achieved a gross profit margin of 31.0%, up from 23.1% in the same quarter last year, and recorded a net loss of $0.6 million, a substantial improvement from the $3.6 million loss in Q2 2025. Orion’s maintenance services segment showed notable growth, contributing to the overall positive financial performance. The company also highlighted strategic wins in LED lighting and EV charging projects, including significant contracts in the public sector and automotive industry, as well as expansion into the Southeastern United States. Looking ahead, Orion reiterated its fiscal 2026 outlook, expecting approximately 5% revenue growth to $84 million and aiming to achieve positive adjusted EBITDA for the full fiscal year.

Orion Energy’s Earnings Call: Growth Amid Challenges

The recent earnings call of Orion Energy presented a balanced outlook, highlighting significant improvements in gross profit and adjusted EBITDA, alongside substantial new business wins and growth in maintenance services. However, the company also faced challenges such as a decline in LED lighting revenue, a net loss, and cautious projections for EV charging revenues due to early-year uncertainty. Positive aspects included maintaining its NASDAQ listing and securing federal support for EV charging.

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.

The most recent analyst rating on (OESX) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Orion Energy Systems stock, see the OESX Stock Forecast page.

Orion Energy Systems Approves Reverse Stock Split

On August 7, 2025, Orion Energy Systems‘ shareholders approved a 1-for-10 reverse stock split of the company’s common stock, which was implemented on August 22, 2025. This move, intended to increase the stock’s bid price and maintain its Nasdaq listing, reduced the number of outstanding shares from approximately 35.2 million to 3.5 million, while also adjusting all related securities proportionally.

The most recent analyst rating on (OESX) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Orion Energy Systems stock, see the OESX Stock Forecast page.