Energy Story

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EFOI -- USA Stock  

USD 3.43  0.35  9.26%

As many millenniums are trying to avoid consumer cyclical space, it makes sense to concentrate on Energy Focus a little further and try to understand its current market patterns. We will evaluate why recent Energy Focus price moves suggest a bounce in April. Is the firm operations in 2021 sustainable? Here we are going to cover Energy Focus perspective on valuation to give you a better outlook on taking a position in this stock.
Published over three weeks ago
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Will Energy Focus (NASDAQ:EFOI) price increase in April 2021?
The company currently holds 4.33 M in liabilities with Debt to Equity (D/E) ratio of 2.02, implying Energy Focus greatly relies on financing operations through barrowing.
We provide trade advice to complement the prevailing expert consensus on Energy Focus. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Energy Focus using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Energy Focus based exclusively on its fundamental and basic technical indicators. By analyzing Energy Focus's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Energy Focus's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Energy Focus. We calculate exposure to Energy Focus's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Energy Focus's related companies.

Energy Focus Investment Alerts

Energy investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Energy Focus performance across your portfolios.Please check all investment alerts for Energy

Energy Focus Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Energy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Energy Focus competition to find correlations between indicators driving the intrinsic value of Energy.

How 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)

Acquisition by Huang Gina 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 grant of restricted stock units by Huang Gina, the corporate stakeholder, on 26th of March 2021. This event was filed by Energy Focus Inc with SEC on 2021-03-26. 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 Energy

The modest gains experienced by current holders of Energy Focus could raise concerns from stockholders as the firm it trading at a share price of 3.94 on 139,600 in volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.33. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Energy Focus partners.
 2018 2019 2020 2021 (projected)
Interest Expense8 K317 K285.3 K425.53 K
Gross Profit3.41 M1.97 M1.78 M1.82 M

Margins Breakdown

Energy profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Energy Focus itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Energy Focus profit margins.
EBITDA Margin(0.49)
Gross Margin0.23
Profit Margin(0.56)

Energy Focus Average Assets is increasing over the last 8 years. Also, Energy Focus Earnings before Tax is decreasing over the last 8 years.

Another 3 percent drop for Energy Focus

Kurtosis is down to 12.89. It may hint to a possible volatility drop.
As of the 25th of March, Energy Focus shows the coefficient of variation of (32,941), and Mean Deviation of 4.67. 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 break down and interpolate 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 3.94 per share. Given that Energy Focus has jensen alpha of (0.07), we urge you to verify Energy Focus's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

While many of the other players within the furnishings, fixtures & appliances industry are still a little expensive, even after the recent corrections, Energy Focus may offer a potential longer-term growth to stockholders. The inconsistency in the assessment between current Energy valuation and our trade advice on Energy Focus is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Energy Focus.

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 Achuva Shats 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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