Energy Focus Inc. Common Stock (EFOI)

FairStock Score: 21/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering Energy Focus at $2.85 as of the 2026-10-13 close, an $18.2M market value. The business sells specialized LED lighting and controls, largely military maritime products such as Intellitube and Invisitube to the U.S. Navy and allied foreign navies. That is a niche, but a niche alone is not a moat. The filed record shows a company that has not earned a profit. In FY2023, revenue was $5.7M and net loss was $4.3M. In FY2024, revenue was $4.9M and net loss was $1.6M. In FY2025, revenue was $3.6M and net loss was $1.0M. So sales are shrinking, even though the loss narrowed. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.7M and net loss was $877,000; that is better than fiscal Q1 2026 revenue of $949,000, but the company still burns money. FairStock's calculations at the 2026-10-13 close show P/B 5.38, P/E -11.40, ROE -50.21%, ROCE -14.89%, FCF -$1.7M, FCF yield -9.5%, Piotroski 2/9, Altman Z -24.22, and a FairStock Score of 21/100. The balance sheet has D/E 0.32, so debt is not the main issue, but cash burn is. FairStock also gives a Lynch category of none because it lost money in each of the last four years. A Graham-style bargain needs a margin of safety in assets or earnings power; here book value is thin and earnings power is absent. At 5.4 times book with negative returns, the price is not cheap; it is a speculative call on a turnaround. I would need evidence of durable revenue and positive cash flow before calling it investment-grade.

In plain English: Energy Focus makes energy-efficient LED lights and controls, mainly for navy ships and military use. The business looks weak: sales have shrunk and it has lost money in each of the last four years. At $2.85 a share, the price looks expensive for a company that is still losing money and selling less than it did a few years ago.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer