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Eos Energy Enterprises (EOSE)
NASDAQ:EOSE
US Market

Eos Energy Enterprises (EOSE) AI Stock Analysis

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EO

Eos Energy Enterprises

(NASDAQ:EOSE)

Rating:46Neutral
Price Target:
$4.50
▼(-1.75%Downside)
Eos Energy Enterprises has a low overall stock score of 46, driven primarily by significant financial instability and negative profitability. While recent corporate actions and strategic partnerships are positive, the company's ongoing operational inefficiencies and financial challenges present substantial risks. Technical indicators also suggest bearish momentum, contributing to a cautious outlook.
Positive Factors
Manufacturing Expansion
Eos is accelerating its manufacturing build out with plans for three fully automated production lines totaling 6GWh.
New Orders
The company secured $174.2mn in new orders, highlighting strong customer interest.
Revenue Growth
Eos reported record revenues with $10.5mn recognized, highlighting the progress ramping up the fully automated Turtle Creek line.
Negative Factors
Booking Performance
Weaker than expected bookings of $9.2mn, but note increasing customer interest.
Execution Probability
The probability of execution is difficult to estimate, leading to a HOLD rating.
Gross Margin
Gross margins are expected to remain negative all year, impacting financial performance.

Eos Energy Enterprises (EOSE) vs. SPDR S&P 500 ETF (SPY)

Eos Energy Enterprises Business Overview & Revenue Model

Company DescriptionEos Energy Enterprises (EOSE) is a leading company in the energy storage industry, specializing in developing and manufacturing innovative energy storage solutions. The company focuses on providing sustainable and efficient energy storage systems primarily through its proprietary zinc-based battery technology, designed to support the transition to renewable energy sources. Operating in sectors such as utilities, renewable energy, and industrial applications, Eos Energy Enterprises aims to deliver reliable and cost-effective energy storage solutions that help customers achieve their energy goals.
How the Company Makes MoneyEos Energy Enterprises makes money primarily through the sale of its energy storage systems, which are based on its proprietary zinc hybrid cathode technology. The company's key revenue streams include direct sales and contracts with utility companies, renewable energy providers, and industrial clients that require large-scale energy storage solutions. Eos generates revenue by providing its battery systems for new installations and retrofitting existing energy infrastructures. Additionally, partnerships with renewable energy developers and strategic collaborations with other firms in the energy sector contribute to its revenue, allowing Eos to expand its market reach and integrate its solutions into larger energy projects.

Eos Energy Enterprises Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -9.13%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company experiencing significant growth in revenue, manufacturing output, and commercial pipeline. Strategic partnerships and a strong cash position are positive indicators. However, challenges remain with operating losses, increased expenses, and delays in meeting DOE loan milestones. Overall, optimism about future growth is tempered by current operational inefficiencies and financial challenges.
Q1-2025 Updates
Positive Updates
Record Quarterly Revenue
EOS reported $10.5 million in revenue for Q1 2025, marking a 58% year-over-year and 44% growth from the prior quarter.
Strong Cash Position
EOS ended the quarter with over $111 million in total cash, supported by strategic partnerships and investments.
Increased Manufacturing Output
Q1 deliveries were 51% higher than Q4 2024, with April production volumes reaching 75% of Q1 volumes, indicating significant operational efficiency improvements.
Growing Commercial Pipeline
The company's pipeline grew 17% year-over-year to $15.6 billion, representing 60 gigawatt hours of long-duration energy storage.
Strategic MOUs Signed
Important MOUs signed include a 5-gigawatt-hour agreement with Frontier Power in the UK and a 400-megawatt-hour project with Trip Ventures in Puerto Rico.
Gross Margin Improvement
Underlying gross margin improved by 93 percentage points year-over-year and 89 percentage points from the previous quarter.
Negative Updates
Gross Loss
The company reported a gross loss of $24.5 million, with COGS at $35 million due to increased shipment volumes and inefficiencies in the manual subassembly process.
Operating Expenses Increase
Operating expenses increased to $28.4 million, driven by non-cash items and strategic headcount growth.
Challenges in Automated Subassembly Transition
Current inefficiencies in the manual subassembly process impacted costs, though automation is expected to improve productivity.
Delayed DOE Loan Milestone
One of the DOE loan milestones related to cash receipts was not met and was extended to July 31, 2025.
Company Guidance
During the Eos Energy Enterprise First Quarter 2025 Conference Call, the company provided guidance indicating strong operational performance and future growth expectations. Eos reiterated its 2025 revenue guidance of $150 million to $190 million, highlighting a significant increase from last year's performance. The company reported first-quarter revenue of $10.5 million, marking a 58% year-over-year growth and a 44% increase from the previous quarter. Operationally, Eos achieved a 51% higher delivery rate in Q1 compared to Q4 2024, with Q1 deliveries already exceeding total 2024 shipments. The company's cash position was robust, bolstered by strategic partnerships and a DOE loan, allowing for operational cash generation. Contract liabilities increased by 80%, reflecting customer confidence and upfront payments. Eos also noted significant progress in its manufacturing capabilities, with automation efforts expected to increase productivity and reduce costs, contributing to an anticipated improvement in gross profit margins. The company emphasized its direct-to-customer model, which, while presenting some challenges, allows for more effective management of project and service revenue. Overall, Eos expressed confidence in its strategy and reiterated its commitment to achieving profitable growth in the long-duration energy storage market.

Eos Energy Enterprises Financial Statement Overview

Summary
Eos Energy Enterprises is facing significant financial challenges with persistent losses, negative equity, and heavy reliance on financing. Operational inefficiencies and high leverage pose substantial risks, overshadowing minor revenue growth.
Income Statement
25
Negative
Eos Energy Enterprises shows significant challenges on the income statement. The TTM (Trailing-Twelve-Months) data indicates a negative gross profit margin of -443%, reflecting high production costs relative to revenue. The net profit margin is also highly negative at -354%, highlighting substantial losses. Revenue growth over the previous year is 24.7%, but the continuing negative EBIT and EBITDA margins suggest operational inefficiencies and high operating expenses.
Balance Sheet
15
Very Negative
The balance sheet reveals a precarious financial position with a debt-to-equity ratio that cannot be accurately calculated due to negative equity. The return on equity is negative, indicating that the company is not generating positive returns on shareholder investments. The equity ratio is also negative, pointing to liabilities exceeding assets, which raises concerns about solvency.
Cash Flow
30
Negative
The cash flow statement shows a 0.9% free cash flow growth, but operating cash flow remains negative. The operating cash flow to net income ratio is 0.22, suggesting limited cash generation relative to net losses. Despite a positive financing cash flow, the company is heavily reliant on external funding to sustain operations, given the negative free cash flow to net income ratio.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
19.46M15.61M16.38M17.92M4.60M219.00K
Gross Profit
-86.17M-83.26M-73.42M-135.34M-41.90M-5.29M
EBIT
-183.53M-175.20M-152.94M-221.26M-134.72M-39.07M
EBITDA
-587.63M-648.50M-162.47M-203.27M-115.48M-45.26M
Net Income Common Stockholders
-688.96M-685.87M-229.51M-229.81M-142.51M-67.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
82.55M74.29M69.47M17.08M104.83M121.85M
Total Assets
263.28M260.32M186.49M106.79M169.18M138.26M
Total Debt
328.60M320.40M208.89M181.07M113.52M1.37M
Net Debt
246.05M246.11M139.42M163.99M8.69M-120.49M
Total Liabilities
1.21B1.33B297.29M239.50M136.73M15.17M
Stockholders Equity
-942.18M-1.07B-110.80M-132.71M32.45M123.10M
Cash FlowFree Cash Flow
-188.69M-187.09M-174.48M-216.93M-131.74M-30.16M
Operating Cash Flow
-154.62M-153.94M-145.02M-196.86M-116.15M-26.56M
Investing Cash Flow
-34.06M-33.19M-29.46M-17.17M-23.34M-6.63M
Financing Cash Flow
241.88M205.83M227.92M139.54M123.32M154.18M

Eos Energy Enterprises Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.58
Price Trends
50DMA
5.07
Negative
100DMA
4.82
Negative
200DMA
4.12
Positive
Market Momentum
MACD
-0.30
Negative
RSI
47.78
Neutral
STOCH
81.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EOSE, the sentiment is Neutral. The current price of 4.58 is below the 20-day moving average (MA) of 4.63, below the 50-day MA of 5.07, and above the 200-day MA of 4.12, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 81.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EOSE.

Eos Energy Enterprises Risk Analysis

Eos Energy Enterprises disclosed 43 risk factors in its most recent earnings report. Eos Energy Enterprises reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Eos Energy Enterprises Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.41B-26.38%21.69%-28.26%
66
Neutral
$4.46B12.115.38%5.02%4.17%-11.82%
56
Neutral
$1.63B-85.86%77.59%2.01%
52
Neutral
$454.46M-68.88%209.20%4.24%
51
Neutral
$1.31B-83.81%-19.85%4.94%
47
Neutral
$669.33M-279.62%2.45%-69.94%
46
Neutral
$1.13B125.43%37.60%-161.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EOSE
Eos Energy Enterprises
4.58
3.72
432.56%
PLUG
Plug Power
1.14
-1.27
-52.70%
MVST
Microvast Holdings
4.33
3.90
906.98%
ENVX
Enovix
8.50
-3.50
-29.17%
ADSE
ADS-TEC Energy
12.20
1.69
16.08%
AMPX
Amprius Technologies Inc
3.77
2.54
206.50%

Eos Energy Enterprises Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Eos Energy’s $175M Convertible Notes Offering Announced
Positive
Jun 3, 2025

On June 3, 2025, Eos Energy Enterprises used approximately $131 million from a notes offering to repurchase $126 million of its 2026 Convertible PIK Toggle Notes in a private transaction. This move may lead to upward pressure on the company’s stock price due to potential open market purchases by the note holders. Additionally, Eos announced a proposed offering of $175 million in convertible senior notes due 2030, with plans to use the proceeds to repurchase existing notes, prepay a portion of its credit agreement, and for general corporate purposes. This strategic financial maneuver aims to optimize the company’s debt structure and enhance its market positioning.

The most recent analyst rating on (EOSE) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Eos Energy Enterprises stock, see the EOSE Stock Forecast page.

Private Placements and Financing
Eos Energy Completes Major Stock Issuance
Neutral
Jun 2, 2025

On May 29, 2025, Eos Energy Enterprises, Inc. entered into a Third Amendment to its Credit and Guaranty Agreement with Cerberus and other lenders, modifying the definition of Specified Refinancing Transaction. Additionally, the company finalized an underwriting agreement to sell 18,750,000 shares of its common stock at $4.00 per share, with an option for underwriters to purchase an additional 2,812,500 shares, which was fully exercised on May 30, 2025. The issuance and sale of 21,562,500 shares were completed on June 2, 2025, potentially impacting the company’s financial flexibility and market position.

The most recent analyst rating on (EOSE) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Eos Energy Enterprises stock, see the EOSE Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Eos Energy Enterprises Amends Credit Agreement
Positive
May 29, 2025

On May 28, 2025, Eos Energy Enterprises announced amendments to its Credit and Guaranty Agreement, allowing the issuance of common stock and convertible notes to refinance existing obligations. This move, facilitated by Cerberus Capital Management, aims to reduce interest rates and defer financial covenants, potentially enhancing the company’s financial flexibility. Additionally, Eos secured a limited consent from the U.S. Department of Energy, permitting the issuance of convertible notes as ‘Permitted Indebtedness’ and ensuring interest payments are reserved for 24 months. Furthermore, a Limited Waiver Agreement with CCM Denali Equity Holdings extends certain restrictions, conditional on closing offerings by July 26, 2025, which could impact the company’s capital structure and investor relations.

The most recent analyst rating on (EOSE) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Eos Energy Enterprises stock, see the EOSE Stock Forecast page.

Executive/Board Changes
Eos Energy Appoints Interim CFO Nathan Kroeker
Neutral
May 27, 2025

On May 27, 2025, Eos Energy Enterprises terminated its Chief Financial Officer, Eric Javidi, without cause, ensuring he receives the benefits outlined in his offer letter. Nathan Kroeker, the current Chief Commercial Officer and former CFO, has been appointed as interim CFO while the company searches for a permanent replacement, with no additional compensation for his interim role.

The most recent analyst rating on (EOSE) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Eos Energy Enterprises stock, see the EOSE Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Eos Energy Enterprises Holds Annual Stockholders Meeting
Neutral
May 16, 2025

On May 15, 2025, Eos Energy Enterprises held its Annual Meeting of Stockholders. During the meeting, several key proposals were voted on, including the election of Class II Directors, the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the 2025 fiscal year, and the approval of executive compensation and an amendment to the company’s incentive plan. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future direction and stakeholder interests.

The most recent analyst rating on (EOSE) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Eos Energy Enterprises stock, see the EOSE Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Eos Energy Enterprises Appoints Joseph Nigro to Board
Positive
Mar 27, 2025

On March 26, 2025, Eos Energy Enterprises appointed Joseph Nigro to its Board of Directors, enhancing its leadership with his extensive experience in the energy and utility sectors. Nigro’s appointment is expected to strengthen Eos’ strategic vision and competitive positioning as the company continues to scale its operations and drive growth in the energy storage market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.