The average target price of EOSE is 6.1 and suggests 2% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 9.0. This translates into 50% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 3.0. This is equivalent to 50% downside potential in the worst case. 

Eos Energy Enterprises, Inc. designs, manufactures, and deploy safe, scalable, and sustainable, low total cost of ownership battery storage solutions for the electricity industry. Its product Eos Znyth DC battery system designed to meet the requirements of the grid-scale energy storage market. The company was founded in 2008 and is headquartered in Edison, NJ.

Eos Energy Enterprises, Inc.

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

EOSE reported revenue of USD 19mn in the last 12 months, up 25% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 20% from FY24 to USD -2.58. Market expects EPS to reach USD -2.46 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 119ppts over past six months and grown 8ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -3019.4% in the last 12 months, a decline from -992.0% in FY23. 

Historically, EOSE has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -3540.0%, down from -1401.3% in FY23. 

Eos Energy Enterprises, Inc. reported a return on equity (RoE) of 130.9% in the last 12 months, down from 188.5% in FY23. The market consensus projects an RoE of 261.3% in FY24, again ahead of its peers. 

Another important profitability metric, return on assets (RoA), amounted to -306.4% in the last 12 months, a decrease from -156.5% in FY23. The market analysts predict that RoA will be -155.2% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -462.1%, below the peers. The consensus estimate for FY24 for RoCE is -173.9%, again behind the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -3.5 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

EOSE boasts high trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually quite stable and remains favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to bleak profitability, negligible return on capital, poor working capital management, inadequate interest coverage, poor cash flow generation, and an unfavourable capital structure. We note resilient historical revenue growth and low margin volatility, among the positive credit factors. 

In highly turbulent market conditions, EOSE is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, EOSE is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. 

Eos Energy Enterprises, Inc.

$ 5.89

2

Eos Energy Enterprises, Inc.

$ 5.89

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 5.89

About

About

Eos Energy Enterprises, Inc.

$ 5.89

2

Eos Energy Enterprises, Inc.

$ 5.89

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 5.89

About

About

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