NEW YORK (TheStreet) --Shares of Energy Focus Inc. (EFOI) - Get Energy Focus, Inc. Report are climbing higher by 41.71% to $8.29 on heavy volume in mid-morning trading on Thursday, after the company received what it describes as "the single largest order in the company's history."
The company, which designs, develops, manufacturers, and markets energy-efficient light emitting diode lighting products, said the U.S. Navy placed a $7.7 million order for Energy Focus' "Intellitube" LED retrofit tubes.
"This true plug and play technology allows for direct fit into existing fluorescent sockets with or without the ballast in place," the company said.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Energy Focus said it has employed and installed its property circuit and LED lamp in over 140 naval vessels, compared to the less than 20 ships installed with its products at the beginning of the year.
Separately, TheStreet Ratings team rates ENERGY FOCUS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENERGY FOCUS INC (EFOI) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for ENERGY FOCUS INC is currently lower than what is desirable, coming in at 33.30%. Regardless of EFOI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, EFOI's net profit margin of -9.28% significantly underperformed when compared to the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, ENERGY FOCUS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ENERGY FOCUS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, ENERGY FOCUS INC's EPS of -$1.50 remained unchanged from the prior years' EPS of -$1.50.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Electrical Equipment industry average. The net income increased by 8.4% when compared to the same quarter one year prior, going from -$0.68 million to -$0.62 million.
- This stock has increased by 49.42% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in EFOI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full analysis from the report here: EFOI Ratings Report
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.