EFOI - Energy Focus

[HWWProject]

Energy Focus (NASDAQ: EFOI) manufactures one of the most reliable tubular LED lamps in the industry, offering an incredible 10-Year warranty.  Strong sales to the US Navy has been the stock’s main catalyst. However, they are rapidly expanding into the commercial market.  The company’s long-term target is +50% organic sales growth.  2015 sales were $64.4 million, a 184% increase.

 

I’m interested in EFOI due to their excellent return on tangible capital of 26%, and Gross Margin of 42%.  The stock price spiked from $4 to $27 last year as sales to the US Navy ramped up, then fell hard and has settled around $7.20 recently. 

 

LED lighting is a very competitive and price-sensitive industry.  Yet the potential market is huge, with only 1% penetration for tubular LED's against fluorescent lighting, a technology that hasn't improved much since the 1940's.

 

My full write-up here:  http://healthywealthywiseproject.com/2016/04/energy-focus-efoi/

 

EFOI seems to be in hyper-growth mode, yet is not currently priced as such.  Any insight/comments on the company or industry are welcome.