Orion Energy Systems (OESX) AI Stock Analysis

• Market Cap: $30.63M
• Dividend Yield: N/A
• Average Volume (3M): 20.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -14.52%
• EPS Growth: -4.40%
• Country: US
• Employees: 260
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.40
• Shares Outstanding: 3,520,271
• 10 Day Avg. Volume: 18,970
• 30 Day Avg. Volume: 20,582
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 1.30
• Enterprise Value/Ebitda: -4.75
• 1Y Price Target: $20.00
• Price Target Upside: 129.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: $7.50 ▼(-13.79% Downside)

Orion Energy Systems faces significant financial challenges, with declining revenues and increased leverage. However, technical indicators show positive momentum, and the earnings call suggests potential for improvement. Valuation remains a concern due to ongoing losses. The company's strategic initiatives and shareholder support provide some optimism for future performance.

Positive Factors

Federal EV Infrastructure Grants

The alignment with federal EV infrastructure grants enhances Orion's strategic positioning, potentially increasing revenue from government contracts and supporting long-term growth in the EV charging segment.

Gross Profit Margin Improvement

The significant improvement in gross profit margin indicates better cost management and pricing strategies, enhancing profitability and financial stability over the long term.

Strategic Projects in Massachusetts

The contract with Massachusetts DOT for EV chargers strengthens Orion's market position in the region, supporting sustainable revenue growth and expanding its footprint in the EV infrastructure market.

Negative Factors

Revenue Decline

The decline in revenue reflects challenges in maintaining sales momentum, which could hinder the company's ability to invest in growth initiatives and improve financial health.

Increased Leverage

Higher leverage increases financial risk and limits flexibility, potentially impacting the company's ability to finance operations and pursue strategic opportunities.

Liquidity Decline

The decline in liquidity reduces the company's ability to manage short-term obligations and invest in growth opportunities, posing a risk to operational stability.

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	79.39M	79.72M	90.58M	77.38M	124.38M	116.84M
Gross Profit	21.86M	20.24M	20.91M	17.51M	33.91M	30.12M
EBITDA	-5.97M	-8.32M	-8.29M	-14.03M	9.93M	8.18M
Net Income	-9.29M	-11.80M	-11.67M	-34.34M	6.09M	26.13M
Balance Sheet
Total Assets	49.02M	52.46M	63.17M	71.58M	86.82M	92.82M
Cash, Cash Equivalents and Short-Term Investments	3.56M	5.97M	5.16M	15.99M	14.47M	19.39M
Total Debt	11.92M	10.32M	12.11M	10.02M	35.00K	49.00K
Total Liabilities	38.21M	40.58M	40.63M	38.33M	21.72M	34.75M
Stockholders Equity	10.81M	11.88M	22.54M	33.25M	65.10M	58.07M
Cash Flow
Free Cash Flow	2.91M	494.00K	-10.93M	-2.89M	-641.00K	776.00K
Operating Cash Flow	3.05M	599.00K	-10.09M	-2.29M	-113.00K	1.73M
Investing Cash Flow	97.00K	128.00K	-731.00K	-6.20M	-4.92M	-946.00K
Financing Cash Flow	-5.27M	90.00K	-14.00K	10.01M	104.00K	-10.14M

Orion Energy Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.70
• 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 Positive. The current price of 8.7 is above the 20-day moving average (MA) of 8.41, above the 50-day MA of 7.14, and above the 200-day MA of 7.32, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 58.94 is Neutral, neither overbought nor oversold. The STOCH value of 42.33 is Neutral, 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
PPSI	59 Neutral	$48.04M	-6.29	99.63%	―	-19.60%	-483.35%
OESX	57 Neutral	$30.63M	―	-62.16%	―	-14.52%	-4.40%
GWH	43 Neutral	$23.28M	-0.26	-2271.61%	―	-16.98%	2.43%
SDST	26 Underperform	$26.48M	-0.56	―	―	―	25.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Orion Energy Systems Corporate Events

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.

Orion Energy Systems Holds Annual Shareholder Meeting

On August 7, 2025, Orion Energy Systems held its Annual Meeting of Shareholders, where key proposals were voted on. Shareholders elected two directors, approved executive compensation, ratified BDO USA, P.C. as the independent public accountant, and approved a reverse stock split and a special stock option grant for the new CEO. These decisions reflect strong shareholder support and are expected to impact the company’s strategic direction and financial structure positively.