One-glance verdict
Overvalued
$4.83 our estimate vs market $30.44
Wall Street consensus: $36.50 (656.5% higher than our fair-value estimate)
531% above our estimate, beyond the bull case
Fundamentals snapshot
Orion Energy Systems, Inc.
OESX · NCM · Industrials · Electrical Equipment & Parts
Current price
$30.44
52-week range
$7.84 - $31.65
Market cap
$124.48M
Balance sheet
Distressed
-2.10x Concerning
Net debt $4.39M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 7.1% last year.
- Reward Returns 0.3% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 3/10 years.
What this company does
Orion Energy Systems, Inc.
Orion Energy Systems helps businesses and government agencies save money on electricity by designing and installing modern LED lighting systems and electric vehicle charging stations. The company primarily earns revenue (the money it takes in from sales) from completing these large projects, so its success often depends on winning new contracts to upgrade buildings like warehouses, offices, and retail stores.
How the company got here
Founded in 1996, Orion Energy Systems started out focused on designing and manufacturing energy-efficient lighting systems. A key moment came in 2009 when its technology was highlighted by President Barack Obama in a speech about new energy technology and 'green collar' jobs, which he followed with a visit to the company in 2011. This raised the company's profile as a leader in energy-saving lighting. Over the years, Orion has adapted to new technologies, shifting its focus heavily to LED lighting and expanding its services to stay current with the needs of its large commercial and industrial customers. More recently, it has ventured into the growing markets of electric vehicle (EV) charging infrastructure and providing specialized lighting for massive data centers.
What it actually does
Think of Orion as a one-stop shop for businesses looking to upgrade their facilities to be more energy-efficient. They design, manufacture, and install high-efficiency LED lighting systems, similar to the bright, long-lasting lights you might see in a large retail store, warehouse, or office building. Beyond just selling the lights, they provide a full service that includes assessing a customer's needs, managing the installation project, and even handling the recycling of old equipment. They also offer ongoing maintenance for lighting and electrical systems and have expanded into installing the charging stations you see for electric cars.
Lighting
This is Orion's core and largest business, making up the majority of its sales. The company provides a wide range of LED lighting products for big indoor spaces like factories and warehouses, as well as for outdoor areas like parking lots. A major part of this business is retrofitting, which means they replace older, less efficient lighting systems in existing buildings with their modern LED solutions. Customers, which include large national retailers, logistics companies, and government facilities, pay Orion for the lighting fixtures and often for the complete service of designing and installing the new system.
Maintenance
This segment provides ongoing support for lighting and electrical systems. After a new lighting system is installed, businesses need to make sure it keeps working correctly, and this division offers repair and replacement services to do just that. This creates a recurring revenue stream (income that is likely to continue in the future) from customers who want the peace of mind that their systems will be taken care of. While smaller than the lighting segment, it provides a steady source of business from existing clients.
Electric Vehicle (EV) Charging
This is a newer and fast-growing part of Orion's business. As more people and businesses switch to electric vehicles, they need places to charge them. Orion provides and installs EV charging stations for its commercial and industrial customers, offering a complete 'turnkey' solution that includes everything from planning to installation. This segment is still a smaller piece of the company's total revenue (the total amount of money generated from sales) but is growing quickly as demand for EV infrastructure increases.
What management is betting on now
Management is focused on expanding into high-growth areas that complement its core lighting business. A major new priority is providing specialized, highly efficient LED lighting for hyperscale data centers—the enormous buildings that power the internet and cloud computing. They are also pushing to grow their electrical contracting services, taking on a bigger role in the construction and modernization of large facilities for major corporate clients. The company is also continuing to build on its new EV charging station installation business, capitalizing on the national shift toward electric transportation.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$493.00K
FY2025 Q3
$3.74M
FY2025 Q4
$-750.00K
FY2026 Q1
$-570.00K
FY2026 Q2
$1.56M
FY2026 Q3
$-1.15M
FY2026 Q4
$-1.51M
FY2027 Q1
$1.35M
Revenue
$25.74M
Net income
$1.96M
Diluted EPS
0.47
Operating cash flow
$1.35M
Free cash flow
$1.35M
Fetching…
Sources
Revenue
$25.72M
Net income
$-1.50M
Diluted EPS
-0.72
Operating cash flow
$-1.49M
Free cash flow
$-1.51M
Fetching…
Sources
Revenue
$21.09M
Net income
$160.00K
Diluted EPS
0.04
Operating cash flow
$-897.00K
Free cash flow
$-1.15M
Fetching…
Sources
Revenue
$19.92M
Net income
$-581.00K
Diluted EPS
-0.17
Operating cash flow
$1.82M
Free cash flow
$1.56M
Fetching…
Sources
Revenue
$19.57M
Net income
$-1.24M
Diluted EPS
-0.04
Operating cash flow
$-515.00K
Free cash flow
$-570.00K
Fetching…
Sources
Revenue
$20.87M
Net income
$-2.91M
Diluted EPS
-0.08
Operating cash flow
$-699.00K
Free cash flow
$-750.00K
Fetching…
Sources
Revenue
$19.58M
Net income
$-1.51M
Diluted EPS
-0.05
Operating cash flow
$3.76M
Free cash flow
$3.74M
Fetching…
Sources
Revenue
$19.36M
Net income
$-3.62M
Diluted EPS
-0.11
Operating cash flow
$498.00K
Free cash flow
$493.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $4.83 vs current price $30.44
Wall Street consensus is the average analyst price target: $36.50 (656.5% higher than our fair-value estimate).
Our most-likely fair value is $4.83 a share — about 84.1% below today's price of $30.44, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $4.4M. Interest coverage -2.1x.
Net debt
$4.39M
Interest coverage
-2.10x
Orion Energy Systems, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
OESX
BASELINE
Orion Energy Systems, Inc.
Total debt $9.55M Interest coverage -2.10x This is the baseline the peer rows are being compared against.
Total debt $306.73M Interest coverage 6.48x This peer still has a real interest-payment cushion, while OESX does not.
Total debt $2.57B Interest coverage 1.46x This peer still has a real interest-payment cushion, while OESX does not.
Total debt $34.64M Interest coverage -6.77x Neither company has much profit cushion over interest right now.
Total debt $76.94M Interest coverage 287.17x This peer still has a real interest-payment cushion, while OESX does not.
What you should know
The case for and against OESX
3 Rewards
0 Risks
Rewards
-
Revenue grew 7.1% last year.
-
Returns 0.3% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
15.61x
P/B
6.61x
P/S
1.35x
EV/EBITDA
42.74x
PEG ratio
1.62x
Profitability
How much profit each dollar creates
Gross margin
33.6%
Operating margin
8.2%
Net margin
0.0%
ROE
0.3%
ROA
1.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
1.53x
Quick ratio
1.05x
Total debt
$9.55M
Total cash
$5.17M
Growth
How the business has been compounding
Revenue TTM
$92.47M
Revenue 5Y CAGR
43.6%
EPS TTM
-0.05
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$788.00K
Free CF TTM
$-1.16M
FCF margin
-1.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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