EFOI Energy stock Story

EFOI -  USA Stock  

USD 4.20  0.13  3.19%

Energy Focus Enterprise Value is most likely to decrease significantly in the upcoming years. The preceding year's Enterprise Value was reported at 9.82 Million. The current Market Capitalization is estimated to increase to about 6 M, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease to (7.3 M). In this article, we will concentrate on Energy Focus as a potential position in addition to your existing holdings. We will examine why it could be a game-changer for Energy Focus stockholders.
Published over six months ago
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Energy Focus (NASDAQ:EFOI) is to drop even more in December
About 20.0% of Energy Focus shares are held by company insiders. Insiders ownership of Energy Focus refers to the amount of Energy Focus equity owned by Energy officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Energy, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Energy Focus. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Energy Focus

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Energy Focus' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Energy Focus in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Energy Focus. Your research has to be compared to or analyzed against Energy Focus' peers to derive any actionable benefits. When done correctly, Energy Focus' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Energy Focus.

How important is Energy Focus's Liquidity

Energy Focus financial leverage refers to using borrowed capital as a funding source to finance Energy Focus ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Energy Focus financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Energy Focus's total debt and its cash.

How EFOI Energy utilizes its cash?

To perform a cash flow analysis of Energy Focus, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Energy Focus is receiving and how much cash it distributes out in a given period. The Energy Focus cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Energy Focus Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at (2.45 Million)

Exercise or conversion by Geraldine McManus of 10000 shares of Energy Focus subject to Rule 16b-3

Legal trades by Energy Focus insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Energy insider trading alert for exercise of restricted stock units by Geraldine McManus, the corporate stakeholder, on 27th of May 2021. This event was filed by Energy Focus Inc with SEC on 2021-05-27. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at EFOI Energy

The big decline in price over the last few months for Energy Focus could raise concerns from stockholders as the firm it trading at a share price of 5.55 on slow start in volume. The company executives failed to add value to investors and positioning the firm supply of money to exploit market volatility in October. However, diversifying your holdings with Energy Focus or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.8. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Energy Focus partners.

Returns Breakdown

Return on Assets(0.55)
Return on Equity(1.34)
Return Capital(0.72)
Return on Sales(0.6)

Will Energy Focus stockholders go bananas after another drop?

The semi variance is down to 17.07 as of today. As of the 12th of November 2020, Energy Focus shows the Mean Deviation of 3.65, coefficient of variation of 6230.01, and Downside Deviation of 4.31. Energy Focus technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Energy Focus, which can be compared to its rivals. Please confirm Energy Focus treynor ratio, and the relationship between the standard deviation and downside variance to decide if Energy Focus is priced favorably, providing market reflects its regular price of 5.55 per share. Given that Energy Focus has jensen alpha of 0.0797, we urge you to verify Energy Focus's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While many of the other players in the furnishings, fixtures & appliances industry are either recovering or due for a correction, Energy Focus may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 12th of November 2020, we believe Energy Focus is currently undervalued. It moves indifferently to market moves and projects very high probability of distress in the next two years. However, our ongoing 30 days buy-or-sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Energy Focus. Please refer to our Terms of Use for any information regarding our disclosure principles.

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