Orion Energy Systems (OESX) AI Stock Analysis

• Market Cap: $52.68M
• Dividend Yield: N/A
• Average Volume (3M): 16.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• 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: 4,030,870
• 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: 0.87
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: -15.22
• 1Y Price Target: $20.00
• Price Target Upside: 38.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $15.50 ▲(7.34% Upside)

The score is driven primarily by improving operating momentum (revenue rebound, better margins, and positive cash flow) and a supportive earnings call highlighting improving adjusted EBITDA and new wins. These positives are tempered by continued GAAP losses (negative P/E), near-term technical weakness versus the 20/50-day averages, and dilution risk from the recent equity offering.

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

Mixed fundamentals: strong TTM revenue rebound and improved gross margin, plus positive operating and free cash flow. However, operating results and net income remain negative, and some balance sheet figures appear inconsistent across periods, reducing confidence in trend comparability.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded sharply (about +70% growth) and gross margin improved to ~29%, showing better pricing/mix or execution. However, profitability remains weak: operating profit and net income are still negative (net margin ~-8%), even though losses narrowed meaningfully versus the prior annual periods. Overall, the top-line trajectory has improved, but the business has not yet returned to sustainable earnings.

Balance Sheet

The balance sheet shows limited leverage in TTM (Trailing-Twelve-Months) with total debt reported at zero and a debt-to-equity ratio at 0, which reduces financial risk. That said, returns to shareholders are still negative due to ongoing losses, and the equity/asset figures appear inconsistent versus prior annual reports (suggesting comparability or data-quality limitations). Based on provided data, leverage looks manageable, but profitability is not supporting returns.

Cash Flow

Cash generation improved: TTM (Trailing-Twelve-Months) operating cash flow (~$4.4M) and free cash flow (~$4.0M) are positive, a strong turnaround from prior years that included materially negative cash flow. Free cash flow also grew strongly versus the last annual period provided. The key weakness is that earnings are still negative, so cash flow strength may be working-capital driven and should be monitored for durability.

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: 14.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.44 is below the 20-day moving average (MA) of 16.69, below the 50-day MA of 16.34, and above the 200-day MA of 9.83, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 8.49 is Positive, 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%
PPSI	55 Neutral	$47.27M	-6.64	―	―	―	―
OESX	54 Neutral	$52.68M	-7.68	-45.94%	―	-12.77%	23.37%
IPWR	53 Neutral	$44.26M	-3.67	-74.44%	―	-69.65%	11.41%
SDST	51 Neutral	$39.96M	-1.03	―	―	―	61.78%
POLA	40 Underperform	$3.91M	-0.46	-119.92%	―	-44.32%	-49.47%

Orion Energy Systems Corporate Events

Orion Energy Systems Completes Underwritten Equity Offering

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 approximately $6.4 million in net proceeds. The company plans to use the funds primarily to pay down amounts outstanding under its existing credit agreement, with the balance allocated to working capital and general corporate purposes, and has agreed, along with its directors and executive officers, to a 90-day lock-up on additional share sales after the closing, underscoring a focus on balance sheet strengthening and capital structure discipline for stakeholders.

The most recent analyst rating on (OESX) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Orion Energy Systems stock, see the OESX Stock Forecast page.