Fluence Energy (FLNC) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: N/A
• Average Volume (3M): 4.50M
• Price to Earnings (P/E): 236.4
• Beta (1Y): 1.72
• Revenue Growth: 6.08%
• EPS Growth: 52.48%
• Country: US
• Employees: 1,595
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.24
• Shares Outstanding: 130,718,870
• 10 Day Avg. Volume: 6,578,943
• 30 Day Avg. Volume: 4,495,865
• PEG Ratio: -0.09
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.50
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 2.18
• Enterprise Value/Ebitda: 22.31
• 1Y Price Target: $5.26
• Price Target Upside: -29.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 59 Neutral
• Price Target: $7.50 ▲(0.27%Upside)

Fluence Energy's overall stock score is primarily driven by strong technical momentum and revenue growth. However, significant profitability challenges, negative valuation aspects, and tariff-related uncertainties from the earnings call weigh heavily on its prospects. The stock's potential is hindered by its financial performance and geopolitical risks, despite its robust backlog and liquidity position.

Positive Factors

International Margins

FLNC management noted that its scope of work on international projects tends to include a higher proportion of EPC work than the U.S., which should allow for better gross margins.

Tax Credits

FLNC's domestic produced cells and battery modules can achieve necessary thresholds under FEOC provisions to claim 45X credits, which helps offset higher cost U.S. ESS.

Negative Factors

Policy Uncertainty

Visibility on growth and bookings remains limited until tariff levels are finalized, impacting future prospects.

Revenue Guidance

Fluence’s revenue guidance was cut by about 20% for FY25, driven by a pause in U.S. contracting due to high tariffs on Chinese cells.

Tariff Impact

U.S. projects remain paused as 154% tariffs have raised imported system costs by ~90%, impacting bookings until policy settles.

Fluence Energy Business Overview & Revenue Model

Company Description

Fluence Energy, Inc. provides energy storage products and services, and artificial intelligence enabled digital applications for renewables and storage applications worldwide. The company sells energy storage products with integrated hardware, software, and digital intelligence, as well as engineering and delivery services to support the deployment of its storage products; operational and maintenance, and energy storage-as-a-service; and digital applications and solutions. Its energy storage products include Gridstack, a grid-scale industrial strength energy storage product; Sunstack for optimizing solar capture and delivery; and Edgestack, a commercial energy storage product that discharges when needed to flatten a facility's energy load profile. The company serves utilities, developers, and commercial and industrial customers. Fluence Energy, Inc. was founded in 2018 and is headquartered in Arlington, Virginia. Fluence Energy, Inc. is a joint venture of Siemens Aktiengesellschaft and The AES Corporation.

How the Company Makes Money

Fluence Energy makes money primarily through the sale of its energy storage systems and related services. The company's revenue model includes the design, engineering, and installation of its energy storage solutions, which are sold to utilities, independent power producers, and commercial and industrial customers. Fluence Energy also generates income through long-term service contracts, providing maintenance, monitoring, and optimization services for its deployed systems. Additionally, the company may engage in strategic partnerships and joint ventures to expand its market reach and enhance its product offerings, contributing to its overall earnings.

Fluence Energy Financial Statement Overview

Summary

Fluence Energy exhibits strong revenue growth but struggles with profitability, reflected in negative margins and consistent net losses. The balance sheet shows manageable leverage despite increasing liabilities, and cash flow issues indicate inefficiencies that could limit growth potential.

Income Statement

Fluence Energy shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a negative EBIT and EBITDA margin, reflecting operational losses. However, the company has demonstrated strong revenue growth over the years, increasing from $561.3 million in 2020 to $2.33 billion in the TTM period. The net profit margin remains negative, indicating continued losses at the net income level, which is a concern for profitability.

Balance Sheet

The balance sheet reflects a moderate financial position. While the debt-to-equity ratio has been relatively low, indicating manageable leverage, the equity ratio has declined due to increasing liabilities. The company has maintained a positive stockholders' equity, which is crucial for future growth. However, the increasing total liabilities are a potential risk that could affect financial stability.

Cash Flow

Fluence Energy's cash flow statement presents challenges, particularly with negative free cash flow in the TTM period. The operating cash flow to net income ratio indicates inefficiencies in converting profits into cash. Despite significant financing cash flow, the company struggles with free cash flow growth, which could impact its ability to invest in future growth opportunities.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.33B	2.70B	2.22B	1.20B	680.77M	561.32M
Gross Profit	304.30M	341.08M	140.96M	-62.35M	-69.14M	7.92M
EBITDA	-9.13M	41.10M	-101.94M	-278.69M	-153.63M	-37.27M
Net Income	-23.88M	22.72M	-69.62M	-289.18M	-162.00M	-46.71M
Balance Sheet
Total Assets	2.27B	1.90B	1.35B	1.75B	717.67M	364.02M
Cash, Cash Equivalents and Short-Term Investments	568.62M	448.69M	345.90M	467.65M	36.83M	93.81M
Total Debt	389.91M	30.36M	50.56M	2.74M	100.00M	0.00
Total Liabilities	1.77B	1.30B	795.82M	1.12B	773.87M	381.25M
Stockholders Equity	388.17M	472.10M	402.35M	435.83M	-279.59M	-117.10M
Cash Flow
Free Cash Flow	-286.63M	60.71M	-124.15M	-290.32M	-269.56M	-15.80M
Operating Cash Flow	-268.68M	71.23M	-111.93M	-282.38M	-265.27M	-14.02M
Investing Cash Flow	-24.24M	-18.98M	94.44M	-148.42M	-22.29M	18.22M
Financing Cash Flow	357.07M	-8.68M	52.59M	817.05M	231.13M	2.50M

Fluence Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLNC, the sentiment is Positive. The current price of 7.48 is above the 20-day moving average (MA) of 5.80, above the 50-day MA of 5.15, and below the 200-day MA of 11.94, indicating a neutral trend. The MACD of 0.69 indicates Negative momentum. The RSI at 83.86 is Negative, neither overbought nor oversold. The STOCH value of 93.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLNC.

Fluence Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMPS	73 Outperform	$800.50M	23.35	0.29%	―	26.49%	―
Sector *	65 Neutral	¥334.02B	7.76	9.28%	2.81%	2.43%	8.54%
RNW	65 Neutral	$2.51B	46.51	4.18%	―	-1.77%	-41.65%
FLNC	59 Neutral	$1.36B	236.42	-5.96%	―	6.08%	52.48%
NXXT	54 Neutral	$326.63M	―	-9999.00%	―	52.34%	10.37%
NRGV	51 Neutral	$132.64M	―	-82.96%	―	-86.10%	-49.68%
SMR	42 Neutral	$10.01B	―	-32.34%	―	62.41%	-85.81%

Fluence Energy Corporate Events

Fluence Energy Announces Leadership Change in Product Management

Rebecca Boll, Senior Vice President and Chief Product Officer, will resign from Fluence Energy effective January 31, 2025, to pursue other opportunities. The company has started searching for her replacement, with interim leadership from Mark Berger and Freddy Reyes Falck, ensuring continuity in product management.