Fluence Energy (FLNC) AI Stock Analysis

• Market Cap: $1.72B
• Dividend Yield: N/A
• Average Volume (3M): 5.49M
• Price to Earnings (P/E): 236.4
• Beta (1Y): 1.77
• Revenue Growth: 6.08%
• EPS Growth: 52.48%
• Country: US
• Employees: 1,595
• Sector: Utilities
• Sector Strength: 76
• Industry: Renewable Utilities
• EPS (TTM): -0.24
• Shares Outstanding: 130,718,870
• 10 Day Avg. Volume: 5,020,484
• 30 Day Avg. Volume: 5,486,076
• PEG Ratio: 0.05
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.33
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 87.01
• Enterprise Value/Ebitda: -5.57
• 1Y Price Target: $6.63
• Price Target Upside: -29.77% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 59 Neutral
• Price Target: $10.00 ▲(5.93%Upside)

Fluence Energy's score is primarily influenced by strong revenue growth and a positive technical outlook. However, profitability issues and valuation concerns, along with tariff-related uncertainties affecting guidance, weigh on the overall score. The stock's momentum is strong, but overbought conditions may lead to volatility.

Positive Factors

International Margins

International margins could be better than previously thought due to a greater portion of EPC work.

Tariff Environment

Increasing 2026 EBITDA margins to reflect a potentially more benign tariff environment with China.

Tax Incentives

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

Negative Factors

Competitive Pressures

Expect FLNC’s margins to remain under pressure given research on competitive dynamics and the troubling downtrend in its Services attachment rate.

Growth Outlook

The uncertainty around tariffs and policies is enough to slow down the market, leading to FLNC revising down its revenue guidance by 20%.

Tariff Uncertainty

U.S. projects are paused as tariffs have significantly increased imported system costs, affecting customer decisions.

Fluence Energy Business Overview & Revenue Model

Company Description

Fluence Energy (FLNC) is a leading global provider of energy storage products and services. The company operates in the renewable energy sector, focusing on the development and deployment of advanced energy storage solutions. Its core products include energy storage systems that help integrate renewable energy into the grid, enhance grid reliability, and provide energy management solutions. Fluence Energy serves utilities, power producers, and large energy consumers, enabling them to optimize energy usage and improve operational efficiency.

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 shows strong revenue growth but faces profitability challenges with negative margins and consistent net losses. The balance sheet shows manageable leverage but increased liabilities, while cash flow issues highlight inefficiencies and potential cash constraints.

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

Fluence Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 9.44 is above the 20-day moving average (MA) of 8.23, above the 50-day MA of 6.37, and below the 200-day MA of 11.01, indicating a neutral trend. The MACD of 0.94 indicates Negative momentum. The RSI at 66.71 is Neutral, neither overbought nor oversold. The STOCH value of 74.95 is Neutral, 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
Sector *	67 Neutral	$16.92B	17.11	4.47%	3.88%	4.75%	6.28%
RNW	65 Neutral	$2.78B	51.55	4.18%	―	-1.77%	-41.65%
FLNC	59 Neutral	$1.72B	236.42	-5.96%	―	6.08%	52.48%
NRGV	58 Neutral	$185.69M	―	-82.96%	―	-86.10%	-49.68%
NXXT	47 Neutral	$207.58M	―	-9999.00%	―	52.34%	10.37%
SMR	42 Neutral	$13.61B	―	-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.