Designs and develops energy-efficient lighting systems. Manufactures LED lighting products for military maritime applications. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
The company closed last year at a loss: costs ran above sales. The picture changes only if spending is reined in.
An average decline of 22% a year over the last 4 years — the most striking risk in this picture. Red columns mark years that ended in a loss.
Before the clock runs out, either sales must climb sharply or new money must come in. This is the most critical line in the whole picture.
This company is not turning a profit, so the market is pricing its sales instead: 5× for every dollar of annual revenue.
Against companies in its own sector, it looks cheaper than 10% of them.
No analyst target is on record for this company.
An investor who bought at the very peak is down 91% today. The business is the same; what changed most is the price — and the expectations — the market pins on it.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
Over the last 12 months, company executives reported 12 buys and 1 sell. Management buying with its own money is usually read as a good sign.
A loss of $1.0M against $3.6M in annual sales. And on top of that, sales fell from the year before.
This stock swings about 2.2 times as much as the market average. Big rallies — and big drops — can both happen fast.
At the current pace of spending, the cash lasts about 1 year. After that, the company needs to find new money.
On our five-subject report card, EFOI sits behind the class. A low grade doesn’t mean “doomed” — it means “big claim, small proof.”
The takeaway: EFOI’s sales are going backwards, and it closed last year at a loss. The road back runs through both.