Fluence Energy shares fell by -2.0% during the day's morning session, and are now trading at a price of $25.13. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
Fluence Energy's Valuation Is in Line With Its Sector Averages:
Fluence Energy, Inc., through its subsidiaries, offers energy storage products and solution, services, and artificial intelligence enabled software-as-a-service products for renewables and storage applications in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company belongs to the Utilities sector, which has an average price to earnings (P/E) ratio of 20.35 and an average price to book (P/B) ratio of 2.27. In contrast, Fluence Energy has a trailing 12 month P/E ratio of -66.1 and a P/B ratio of 7.75.
Fluence Energy's PEG ratio is 1.21, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
Strong Revenue Growth and an Average Current Ratio:
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Revenue (M) | $681 | $1,199 | $2,218 |
| Gross Margins | -10% | -5% | 6% |
| Net Margins | -24% | -9% | -3% |
| Net Income (M) | -$162 | -$104 | -$70 |
| Net Interest Expense (M) | -$1 | $2 | $7 |
| Depreciation & Amort. (M) | $1 | $7 | $10 |
| Diluted Shares (M) | 54 | 115 | 121 |
| Earnings Per Share | -$2.99 | -$0.35 | -$0.6 |
| EPS Growth | n/a | 88.29% | -71.43% |
| Avg. Price | $34.13 | $13.12 | $25.13 |
| P/E Ratio | -11.41 | -37.49 | -41.88 |
| Free Cash Flow (M) | -$270 | -$290 | -$115 |
| CAPEX (M) | $4 | $8 | $3 |
| Current Ratio | 1.97 | 1.32 | 1.33 |
