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 and overvalued.

Risks

  • Energy Focus has significant price volatility in the past 3 months.
  • Energy Focus is covered by less than 3 analysts.

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

-6.7%

NasdaqCM:EFOI

0.9%

US Electrical

0.9%

US Market


1 Year Return

-78.7%

NasdaqCM:EFOI

-11.0%

US Electrical

0.3%

US Market

EFOI underperformed the Electrical industry which returned -11% over the past year.

EFOI underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

EFOIIndustryMarket
7 Day-6.7%0.9%0.9%
30 Day15.7%-5.9%-1.9%
90 Day-15.8%-3.8%1.6%
1 Year-78.7%-78.7%-9.1%-11.0%2.6%0.3%
3 Year-87.7%-87.7%23.2%16.0%41.0%31.8%
5 Year-89.3%-89.3%17.7%5.7%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

0.69x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Energy Focus to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Energy Focus to establish if it is available at substantial discount.


Price Based on Earnings

Energy Focus is loss making, we can't compare its value to the US Electrical industry average.

Energy Focus is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Energy Focus, we can't assess if its growth is good value.


Price Based on Value of Assets

Energy Focus is good value based on assets compared to the US Electrical industry average.


Next Steps

Future Growth

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

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Energy Focus's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Energy Focus is not considered high growth as it is expected to be loss making for the next 1-3 years.

Energy Focus's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Unable to compare Energy Focus's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Energy Focus's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Energy Focus will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Energy Focus performed over the past 5 years?

-24.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Energy Focus does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Energy Focus's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Energy Focus's 1-year growth to the US Electrical industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Energy Focus has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Energy Focus has efficiently used its assets last year compared to the US Electrical industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Energy Focus improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Energy Focus's financial position?


Financial Position Analysis

Energy Focus is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Energy Focus's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Energy Focus's level of debt (40.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (27% vs 40.5% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.4x 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.

Energy Focus has less than a year of cash runway based on current free cash flow.

Energy Focus has less than a year of cash runway if free cash flow continues to reduce at historical rates of -14% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Energy Focus's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Energy Focus's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Energy Focus has not reported any payouts.

Unable to verify if Energy Focus's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Energy Focus has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

James Tu (50yo)

0.3yrs

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

Insufficient data for James to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.

James's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

50yo

Average Age

The tenure for the Energy Focus management team is about average.


Board Age and Tenure

0.5yrs

Average Tenure

62yo

Average Age

The average tenure for the Energy Focus board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Simon Cheng (46yo)

    Vice President of Product Development

    • Tenure: 3.7yrs
    • Compensation: US$40.89k
  • Wayne Platt (80yo)

    Consultant

    • Tenure: 0.0yrs
  • Larry Fallon

    Senior Vice President of Sales & Marketing

    • Tenure: 2.3yrs
  • James Tu (50yo)

    Chairman & CEO

    • Tenure: 0.3yrs
    • Compensation: US$436.99k
  • Laszlo Takacs

    Chief Technology Officer

    • Tenure: 1.8yrs
  • Stephen Davis

    Director of Government & Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Michael Ramelot (73yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$84.80k
  • Steve Socolof (59yo)

    Director

    • Tenure: 0.3yrs
  • Marc Byrnes

    Member of Advisory Board

    • Tenure: 0.0yrs
  • Phil Politziner (79yo)

    Director

    • Tenure: 0.0yrs
  • Rick Fedrizzi (64yo)

    Member of Advisory Board

    • Tenure: 3.0yrs
  • Jennifer Cheng (52yo)

    Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$10.82k
  • James Tu (50yo)

    Chairman & CEO

    • Tenure: 0.3yrs
    • Compensation: US$436.99k
  • Geraldine McManus (62yo)

    Independent Director

    • Tenure: 0.5yrs

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$5.938m
  • 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 Analysis2019/08/21 00:18
End of Day Share Price2019/08/20 00:00
Earnings2019/03/31
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.