Orion Energy Systems (NasdaqCM:OESX) - Share price, News & Analysis

OESX fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	4/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

OESX Stock Overview

Rewards

Trading at 86.6% below our estimate of its fair value

Earnings are forecast to grow 23.22% per year

Earnings grew by 744.9% over the past year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap ($80M)

Orion Energy Systems Competitors

Hubbell

NYSE:HUBB

US$10.4b

Acuity Brands

NYSE:AYI

US$5.7b

LSI Industries

NasdaqGS:LYTS

US$184.7m

Energy Focus

NasdaqCM:EFOI

US$5.5m

Price History & Performance

Summary of all time highs, changes and price drops for Orion Energy Systems
Historical stock prices
Current Share Price	US$2.58
52 Week High	US$6.78
52 Week Low	US$2.40
Beta	2.08
1 Month Change	-1.53%
3 Month Change	-17.04%
1 Year Change	-56.35%
3 Year Change	73.15%
5 Year Change	85.61%
Change since IPO	-87.95%

Recent News & Updates

Feb 23

Orion Energy: $3 A Share Reflects Sentiment And Not The Fundamentals

Revenue dropped sharply in Q3 due to being up against a tough comparable. Book value and margins, however, continue to rise. We continue to wait for Orion to give us a technical buy signal.

Shareholder Returns

	OESX	US Electrical	US Market
7D	-3.9%	-5.6%	-2.5%
1Y	-56.3%	-19.4%	-10.4%

Return vs Industry: OESX underperformed the US Electrical industry which returned -19.4% over the past year.

Return vs Market: OESX underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is OESX's price volatile compared to industry and market?
OESX volatility
OESX Average Weekly Movement	7.5%
Electrical Industry Average Movement	11.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: OESX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: OESX's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	213	Mike Altschaefl	https://www.orionlighting.com

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 in three segments: Orion Engineered Systems, Orion Distribution Services, and Orion U.S. Markets.

Orion Energy Systems Fundamentals Summary

How do Orion Energy Systems's earnings and revenue compare to its market cap?
OESX fundamental statistics
Market Cap	US$80.22m
Earnings (TTM)	US$29.40m
Revenue (TTM)	US$137.82m

2.7x

P/E Ratio

0.6x

P/S Ratio

Is OESX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
OESX income statement (TTM)
Revenue	US$137.82m
Cost of Revenue	US$99.94m
Gross Profit	US$37.88m
Other Expenses	US$8.48m
Earnings	US$29.40m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.95
Gross Margin	27.48%
Net Profit Margin	21.33%
Debt/Equity Ratio	0%

How did OESX perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: OESX ($2.58) is trading below our estimate of fair value ($19.2)

Significantly Below Fair Value: OESX is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: OESX is good value based on its PE Ratio (2.7x) compared to the US Electrical industry average (19.3x).

PE vs Market: OESX is good value based on its PE Ratio (2.7x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: OESX is good value based on its PEG Ratio (0.1x)

Price to Book Ratio

PB vs Industry: OESX is good value based on its PB Ratio (1.2x) compared to the US Electrical industry average (1.9x).

Future Growth

How is Orion Energy Systems forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OESX's forecast earnings growth (23.2% per year) is above the savings rate (1.9%).

Earnings vs Market: OESX's earnings (23.2% per year) are forecast to grow faster than the US market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OESX's revenue (14.9% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: OESX's revenue (14.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has Orion Energy Systems performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

72.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OESX has a high level of non-cash earnings.

Growing Profit Margin: OESX's current net profit margins (21.3%) are higher than last year (3.2%).

Past Earnings Growth Analysis

Earnings Trend: OESX has become profitable over the past 5 years, growing earnings by 72.6% per year.

Accelerating Growth: OESX's earnings growth over the past year (744.9%) exceeds its 5-year average (72.6% per year).

Earnings vs Industry: OESX earnings growth over the past year (744.9%) exceeded the Electrical industry 34%.

Return on Equity

High ROE: OESX's Return on Equity (44.5%) is considered outstanding.

Financial Health

How is Orion Energy Systems's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: OESX's short term assets ($54.4M) exceed its short term liabilities ($22.5M).

Long Term Liabilities: OESX's short term assets ($54.4M) exceed its long term liabilities ($3.4M).

Debt to Equity History and Analysis

Debt Level: OESX is debt free.

Reducing Debt: OESX has no debt compared to 5 years ago when its debt to equity ratio was 14.2%.

Debt Coverage: OESX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: OESX has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as OESX has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure

CEO

Mike Altschaefl (62 yo)

5yrs

Tenure

US$1,304,173

Compensation

Mr. Michael W. Altschaefl, also known as Mike, CPA, has been the Chief Executive Officer of Orion Energy Systems, Inc since May 25, 2017. Mr. Altschaefl served as Vice President of Strategy and Business De...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.30M) is above average for companies of similar size in the US market ($USD770.21K).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: OESX's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: OESX's board of directors are considered experienced (6.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31