Flux Power Holdings (FLUX) AI Stock Analysis

• Market Cap: $25.69M
• Dividend Yield: N/A
• Average Volume (3M): 73.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -5.96%
• EPS Growth: -50.28%
• Country: US
• Employees: 119
• Sector: Industrials
• Sector Strength: 61
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.54
• Shares Outstanding: 16,682,465
• 10 Day Avg. Volume: 44,519
• 30 Day Avg. Volume: 73,254
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.53
• Price to Cash Flow (P/CF): -15.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.75
• Price Target Upside: 273.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Flux Power Holdings is benefiting from strong revenue growth and strategic initiatives, but challenges include persistent net losses, negative equity, and high financial leverage. The company's upward stock momentum provides some positive technical signals, but caution is advised due to valuation concerns and overbought indicators. Recent corporate developments offer a positive outlook, contributing to the overall score.

Positive Factors

Financial Performance

The company reported financial results that were above both the analyst's and consensus estimates.

Leadership Change

The appointment of Krishna Vanka as CEO, who has experience leading a major energy company, is seen as a positive leadership change.

Market Position

Flux has a leading market position in a market with strong secular growth trends and has made large strides toward reaching profitability.

Negative Factors

Cost Pressures

FLUX relies on raw materials, semiconductors, and lithium-ion battery cells, some of which may come under cost pressure due to tariffs.

Revenue Expectations

FY24 revenue of $60.8M, down 8.5% y/y, missed analyst's estimate and consensus.

Sales Performance

Orders of $50.3M in FY24 were down 16% y/y, resulting in a book-to-bill of 0.8x for the year.

Flux Power Holdings Business Overview & Revenue Model

Company Description

Flux Power Holdings, Inc. (FLUX) designs, develops, and sells advanced lithium-ion energy storage solutions for industrial applications. The company primarily serves sectors such as material handling, airport ground support equipment, and other commercial and industrial markets. Its core products include lithium-ion battery packs and energy storage systems that offer a cleaner and more efficient alternative to traditional lead-acid batteries.

How the Company Makes Money

Flux Power Holdings generates revenue by manufacturing and selling lithium-ion battery packs and energy storage systems. The company's key revenue streams include direct sales of its battery products to original equipment manufacturers (OEMs) and end-users across various industrial sectors. Flux Power also benefits from partnerships with manufacturers that integrate its battery solutions into their equipment, enhancing the overall value proposition. The adoption of lithium-ion technology over conventional lead-acid batteries due to its efficiency and environmental benefits significantly contributes to the company's earnings.

Flux Power Holdings Financial Statement Overview

Summary

Flux Power Holdings exhibits strong revenue growth, but persistent net losses and negative equity remain concerns. Improved cash flow management is a positive sign, yet high financial leverage and reliance on debt increase risk. Focus on cost control and achieving profitability is crucial.

Income Statement

Flux Power Holdings has shown robust revenue growth from $16.8M in 2020 to $60.6M in TTM 2024. However, profitability remains a challenge, with negative EBIT and Net Income across the periods. The Gross Profit Margin is improving, reaching approximately 30% in TTM 2024, but Net Profit Margin is still negative, indicating that costs need to be managed better to achieve profitability.

Balance Sheet

The company's financial leverage is concerning, with a negative Stockholders' Equity of $-2.74M in TTM 2024, leading to a negative Debt-to-Equity Ratio. This indicates potential financial instability. The Equity Ratio has also declined, suggesting increased reliance on debt financing which poses a risk if revenue growth does not translate into profitability.

Cash Flow

Flux Power Holdings has improved its Free Cash Flow in TTM 2024 to $4.24M from negative numbers in prior periods, indicating better cash management. The Operating Cash Flow to Net Income ratio is positive in TTM 2024, showing operational cash generation despite net losses. However, reliance on financing activities in previous years highlights ongoing liquidity challenges.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
60.64M	60.82M	66.34M	42.33M	26.26M	16.84M
	Gross Profit
18.20M	17.23M	17.10M	7.30M	5.79M	2.19M
	EBIT
-7.23M	-6.62M	-5.41M	-15.36M	-13.48M	-12.55M
	EBITDA
-6.71M	-6.62M	-4.50M	-14.78M	-11.50M	-12.41M
	Net Income Common Stockholders
-8.96M	-8.33M	-6.74M	-15.86M	-14.45M	-16.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	1.58M	2.38M	485.00K	4.71M	726.00K
	Total Assets
0.00	35.09M	35.70M	30.88M	26.26M	13.97M
	Total Debt
0.00	16.16M	13.03M	7.75M	3.30M	12.26M
	Net Debt
0.00	15.51M	10.65M	7.27M	-1.41M	11.54M
	Total Liabilities
52.98K	32.11M	26.16M	16.95M	13.26M	20.39M
	Stockholders Equity
-52.98K	4.40M	9.55M	13.93M	13.01M	-6.42M
Cash Flow		Free Cash Flow
4.24M	-4.80M	-4.61M	-24.69M	-19.46M	-8.67M
	Operating Cash Flow
4.49M	-4.80M	-3.57M	-23.89M	-18.36M	-8.34M
	Investing Cash Flow
-765.00K	-853.00K	-1.02M	-797.00K	-1.10M	-323.00K
	Financing Cash Flow
-3.90M	3.92M	6.49M	20.46M	23.45M	9.29M

Flux Power Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLUX, the sentiment is Negative. The current price of 1.54 is below the 20-day moving average (MA) of 1.70, below the 50-day MA of 1.59, and below the 200-day MA of 2.46, indicating a bearish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 32.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLUX.

Flux Power Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENPH	68 Neutral	$7.10B	73.33	11.30%	―	-41.92%	-76.24%
FLUX	62 Neutral	$25.69M	―	-385.84%	―	-5.96%	-50.28%
Sector *	62 Neutral	$7.67B	13.25	3.04%	3.47%	3.63%	-13.99%
BE	59 Neutral	$4.12B	―	-5.49%	―	10.53%	90.76%
BLNK	49 Neutral	$76.84M	―	-97.10%	―	-10.24%	37.82%
FCEL	45 Neutral	$85.42M	―	-18.96%	―	11.09%	0.41%
PLUG	43 Neutral	$1.18B	―	-90.88%	―	-29.45%	-10.79%

Flux Power Holdings Corporate Events

Flux Power Holdings Finalizes CEO Separation Agreement

On March 31, 2025, Flux Power Holdings, Inc. finalized a separation and release agreement with Ronald F. Dutt, its former CEO, President, and Director, following his departure from the company. The agreement includes severance benefits comprising a cash payment of $386,250.02 distributed in twelve installments and a monthly health insurance payment for a year, reflecting standard industry practices for executive transitions.

Flux Power Holdings Reports Strong H1 2025 Results

Flux Power Holdings reported financial results for the first half of fiscal year 2025, showing revenue and gross margin growth driven by increased demand for their innovative products. Despite some delays in customer orders due to higher interest rates, the company maintains a positive outlook with a significant order backlog and ongoing strategic initiatives to enhance sales and profitability. Key developments include launching a private label program with a major forklift OEM, expanding product lines, and forming partnerships to improve battery recycling processes.

Flux Power Holdings Announces Leadership Changes in 2025

On March 10, 2025, Flux Power Holdings announced the retirement of Ronald F. Dutt from his roles as director, Chairman, CEO, and President, with Dale T. Robinette and Krishna Vanka appointed as the new Chairman and CEO, respectively. Vanka, with extensive experience in renewable energy and technology sectors, is expected to lead the company towards growth and innovation. The company also set May 28, 2025, for its Annual Meeting of Stockholders, advancing the date by more than 30 days from the previous year, and outlined new deadlines for stockholder proposals.

Flux Power Holdings Faces Nasdaq Compliance Deadline

On February 21, 2025, Flux Power Holdings received a notice from Nasdaq indicating non-compliance with the Nasdaq Listing Rule 5250(c)(1) due to delayed filing of its quarterly reports for periods ending September 30, 2024, and December 31, 2024. The company has until March 10, 2025, to submit an updated compliance plan. If accepted, Nasdaq may grant an extension until April 14, 2025, to file the delinquent reports. This notice does not immediately affect the company’s stock listing, and Flux Power is actively working to address the issue.

Flux Power Holdings Reports 2024 Financial Results

Flux Power Holdings reported its fiscal year 2024 financial results, highlighting a decrease in revenue to $60.8 million from $66.5 million in the previous year, but an improved gross profit of $17.2 million. The company completed the restatement of past financials, identifying $5.2 million in cumulative adjustments, primarily from excess and obsolete inventory, without impacting cash flow. Despite delays in order shipments due to higher interest rates and geopolitical uncertainties, Flux Power remains optimistic about future growth and profitability, supported by a $17.5 million order backlog as of December 31, 2024.