Forensic Analysis · Electrical Equipment · as of Nov 8, 2026
Orion Energy Systems, Inc. (OESX)
A forensic read on Orion Energy Systems, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-5.8
Distress distance
Clean
Earnings quality
5
Forensic signals
-22.2%
ROE
8.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Orion Energy Systems, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -5.8, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-6.2%
FY2026
Return on invested capital.Return on invested capital is -6.2% in the latest fiscal year, against -28.5% in FY2024, having run between -33.5% and -6.2% across FY2024–FY2026 with no direction held. After-tax operating profit was ($9M) in FY2024 and ($1M) in FY2026, with operating income at -11.9% of revenue in FY2024, -13.3% in FY2025 and -1.9% in FY2026. The capital base behind it came down -30% across FY2024–FY2026, from $30M to $21M, so this return is struck on a smaller base than it started on.
+11.8%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +11.8% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. Net operating assets also rose $1.0M through acquisitions (shares issued for businesses); that purchase is investing and is excluded from this ratio. The build is led by receivables up +27% against revenue +8%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 12% of net operating assets, against an accruals ratio of 11.8%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
69d DSO
FY2025→FY2026
Receivables vs revenue.Days sales outstanding moved from 59 to 69 days FY2025→FY2026 (receivables +27% vs revenue +8%). Receivables are creeping up relative to sales. Across FY2024–FY2026 the day count ran 57 → 59 → 69 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Deferred revenue was roughly flat (-71%) over the same period, which doesn't corroborate a benign upfront-billing explanation for the receivables build. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2025's opening balance is on file, but across the 3 fiscal years read here (FY2024–FY2026) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
+4.7%/yr
FY2024–FY2026
Share-count dilution.Diluted share count changed +10% over the last 2 years to FY2026 (+4.7%/yr). The count is growing — 3.2M shares in FY2024, 3.6M in FY2026: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~4.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~9%.
0.6% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 0.6% of revenue in FY2026 — about $0.14 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 4.7% a year across FY2024–FY2026 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$86.3M
Revenue Growth YoY+8.3%
Revenue CAGR (2yr)-2.4%
Net Margin-3.7%
Free Cash Flow-$1.2M
Return on Equity-22.2%
Debt / Equity0.36x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Orion Energy Systems, Inc.'s actual 10-K/10-Q/8-K filings?