NasdaqCM:EFOI

Stock Analysis Report

Executive Summary

Energy Focus, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and sells energy-efficient lighting systems in the United States and internationally.

Snowflake

Fundamentals

Imperfect balance sheet with limited growth.


Similar Companies

Share Price & News

How has Energy Focus's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-10.2%

EFOI

1.9%

US Electrical

0.5%

US Market


1 Year Return

-70.1%

EFOI

3.8%

US Electrical

6.8%

US Market

Return vs Industry: EFOI underperformed the US Electrical industry which returned 3.8% over the past year.

Return vs Market: EFOI underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

EFOIIndustryMarket
7 Day-10.2%1.9%0.5%
30 Day-4.4%0.9%-0.8%
90 Day4.7%2.4%-0.9%
1 Year-70.1%-70.1%6.1%3.8%9.2%6.8%
3 Year-89.1%-89.1%41.7%33.3%45.6%36.2%
5 Year-92.6%-92.6%37.2%23.4%63.2%45.4%

Price Volatility Vs. Market

How volatile is Energy Focus's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Energy Focus undervalued compared to its fair value and its price relative to the market?

0.86x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate EFOI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate EFOI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: EFOI is unprofitable, so we can't compare its PE Ratio to the Electrical industry average.

PE vs Market: EFOI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EFOI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EFOI is good value based on its PB Ratio (0.9x) compared to the US Electrical industry average (1.6x).


Next Steps

Future Growth

How is Energy Focus forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

36.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFOI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: EFOI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: EFOI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: EFOI's revenue (20.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: EFOI's revenue (20.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EFOI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Energy Focus performed over the past 5 years?

-28.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EFOI is unprofitable, and losses have increased over the past 5 years at a rate of -28.2% per year.

Accelerating Growth: Unable to compare EFOI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EFOI is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (16.3%).


Return on Equity

High ROE: EFOI has a negative Return on Equity (-163.13%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: EFOI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: EFOI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Energy Focus's financial position?


Financial Position Analysis

Short Term Liabilities: EFOI's short term assets ($12.2M) exceeds its short term liabilities ($7.1M)

Long Term Liabilities: EFOI's short term assets (12.2M) exceeds its long term liabilities (1.6M)


Debt to Equity History and Analysis

Debt Level: EFOI's debt to equity ratio (54.5%) is considered high

Reducing Debt: EFOI's debt to equity ratio has increased from 19.7% to 54.5% over the past 5 years.


Balance Sheet

Inventory Level: EFOI has a high level of physical assets or inventory.

Debt Coverage by Assets: EFOI's debt is covered by short term assets (assets are 3.643190x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EFOI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: EFOI has less than a year of cash runway if free cash flow continues to grow at historical rates of 25.7% each year.


Next Steps

Dividend

What is Energy Focus's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate EFOI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EFOI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if EFOI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EFOI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EFOI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Energy Focus's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

James Tu (50yo)

0.5yrs

Tenure

US$436,990

Compensation

Mr. James Tu, CFA, is Chairman and Chief Executive Officer of Energy Focus, Inc. since April 2019 and served as its President and Interim Chief Financial Officer since April 2019 until July 1, 2019. Mr. Tu ...


CEO Compensation Analysis

Compensation vs. Market: James's total compensation ($USD0.00) is too low to compare against companies of similar size in the US market ($USD503.30K).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: EFOI's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

0.7yrs

Average Tenure

62yo

Average Age

Experienced Board: EFOI's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Simon Cheng (46yo)

    Vice President of Product Development

    • Tenure: 3.8yrs
    • Compensation: US$40.89k
  • Wayne Platt (80yo)

    Consultant

    • Tenure: 0yrs
  • Tod Nestor (56yo)

    President

    • Tenure: 0.3yrs
  • Larry Fallon

    Senior Vice President of Sales & Marketing

    • Tenure: 2.4yrs
  • James Tu (50yo)

    Chairman & CEO

    • Tenure: 0.5yrs
    • Compensation: US$436.99k
  • Laszlo Takacs

    Chief Technology Officer

    • Tenure: 1.9yrs
  • Stephen Davis

    Director of Government & Investor Relations

    • Tenure: 0yrs

Board Members

  • Michael Ramelot (73yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$84.80k
  • Steve Socolof (59yo)

    Lead External Board Member

    • Tenure: 0.08yrs
  • Marc Byrnes

    Member of Advisory Board

    • Tenure: 0yrs
  • Phil Politziner (79yo)

    Independent Director

    • Tenure: 0.2yrs
  • Rick Fedrizzi (64yo)

    Member of Advisory Board

    • Tenure: 3.2yrs
  • Jennifer Cheng (52yo)

    Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$10.82k
  • James Tu (50yo)

    Chairman & CEO

    • Tenure: 0.5yrs
    • Compensation: US$436.99k
  • Geraldine McManus (62yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

Energy Focus, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Energy Focus, Inc.
  • Ticker: EFOI
  • Exchange: NasdaqCM
  • Founded: 1985
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$5.319m
  • Shares outstanding: 12.37m
  • Website: https://www.energyfocus.com

Number of Employees


Location

  • Energy Focus, Inc.
  • 32000 Aurora Road
  • Suite B
  • Solon
  • Ohio
  • 44139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EFOINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 1994
FI41DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1994

Biography

Energy Focus, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and sells energy-efficient lighting systems in the United States and internationally. It offers military mariti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:08
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.