Short Report on Fluence Energy Stock

Now trading at a price of $24.55, Fluence Energy has moved 1.8% so far today.

Fluence Energy returned gains of 42.0% last year, with its stock price reaching a high of $31.32 and a low of $11.89. Over the same period, the stock outperformed the S&P 500 index by 37.0%. More recently, the company's 50-day average price was $26.83. Fluence Energy, Inc., through its subsidiaries, offers energy storage products and services, and artificial intelligence enabled digital applications for renewables and storage applications in the Americas, Asia Pacific, Europe, Middle-East, and Africa. Based in Arlington, VA, the mid-cap Utilities company has 967 full time employees. Fluence Energy has not offered a dividend during the last year.

The Company Has a Positive Net Current Asset Value:

2019-09-30 2020-09-30 2021-09-30 2022-09-30
Revenue (MM) $92 $561 $681 $1,199
Gross Margins -8.6% 1.4% -10.2% -5.2%
Operating Margins -53.8% -7.3% -23.3% -23.6%
Net Margins -50.98% -8.32% -23.8% -8.72%
Net Income (MM) -$47 -$47 -$162 -$104
Net Interest Expense (MM) -$0 n/a -$1 -$2
Depreciation & Amort. (MM) -$3 -$3 -$5 -$7
Earnings Per Share -$0.95 $0.0 -$3.27 -$1.02
EPS Growth n/a 100.0% n/a 68.81%
Diluted Shares (MM) 49 49 49 117
Free Cash Flow (MM) $25 -$16 -$270 -$290
Capital Expenditures (MM) -$3 -$2 -$4 -$8
Net Current Assets (MM) -$15 -$54 -$112 $485
Current Ratio 0.92 0.87 0.86 1.44

Fluence Energy has slimmer gross margins than its peers, consistently negative margins with a positive growth rate, and negative and highly variable cash flows. On the other hand, the company has growing revenues and increasing reinvestment in the business working in its favor. Furthermore, Fluence Energy has flat EPS growth and just enough current assets to cover current liabilities.

Fluence Energy does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $0.22, the company has a forward P/E ratio of 122.0. In comparison, the average P/E ratio for the Utilities sector is 22.89. Furthermore, Fluence Energy is likely overvalued compared to the book value of its equity, since its P/B ratio of 7.4 is higher than the sector average of 1.03.

Fluence Energy Has an Average Rating of Buy:

The 22 analysts following Fluence Energy have set target prices ranging from $18.0 to $44.0 per share, for an average of $31.59 with a buy rating. As of April 2023, the company is trading -15.1% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

Fluence Energy has an unusually large proportion of its shares sold short because 19.8% of the company's shares are sold short. Institutions own 65.1% of the company's shares, and the insider ownership rate stands at 34.18%, suggesting a large amount of insider shareholders. The largest shareholder is Siemens Ag , whose 34% stake in the company is worth $975,370,783.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.