Sustainable lighting solutions developer Energy Focus (NASDAQ:EFOI) has attracted significant investor attention lately due to its recently launched new products that help protect against COVID-19. However, considering the company's inability to generate sufficient cash flows to meet its operational needs, and its poor profitability, is it worth adding the stock to one’s portfolio? Read on to learn more.Energy Focus (EFOI) is a leading developer of sustainable LED lighting and lighting control technologies as well as UVC Disinfector solutions. The Solon, Ohio-based company has a proven track record of quality, reliability, and success in delivering healthy lighting for mission-critical facilities, such as the U.S. Navy, National Institutes of Health, and several other leading healthcare and educational institutions.
The company's shares have gained 42.2% in price over the past month, due primarily to its two new product launches. These products help protect consumers from COVID-19. Disinfectors nUVo Tower UVC air and nUVo Traveler are the two new products designed to destroy up to 99.9% of airborne pathogens in rooms 1,000 cubic feet in size.
However, the stock has declined 21.3% in price over the past year and 23.2% over the past nine months. EFOI's inability to generate sufficient cash flows to fulfill its operational needs and its weak profitability have made investors question its prospects.