Flux Power Holdings (FLUX) AI Stock Analysis

• Market Cap: $28.67M
• Dividend Yield: N/A
• Average Volume (3M): 43.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -5.96%
• EPS Growth: -50.28%
• Country: US
• Employees: 119
• Sector: Industrials
• Sector Strength: 78
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.54
• Shares Outstanding: 16,767,470
• 10 Day Avg. Volume: 24,363
• 30 Day Avg. Volume: 43,940
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: 236.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Flux Power Holdings' overall score reflects a mix of strong revenue growth and improved cash flow management, tempered by significant profitability challenges and high financial leverage. Technical indicators suggest some short-term strength, while valuation concerns remain due to unprofitability. The positive sentiment from recent corporate developments provides some optimism, but financial instability and valuation risks weigh heavily on the stock's attractiveness.

Positive Factors

Financial Performance

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

Leadership

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.

Order Decline

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

Revenue Decline

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

Flux Power Holdings Business Overview & Revenue Model

Company Description

Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the United States. It offers battery management system (BMS) that provides cell balancing, charging, discharging, monitoring, and communication between the pack and the forklift. The company also provides 24-volt onboard chargers for its Class 3 Walkie LiFT packs; and smart wall mounted chargers to interface with its BMS. The company sells its products directly to small companies and end-users, as well as through original equipment manufacturers, lift equipment dealers, and battery distributors. Flux Power Holdings, Inc. was incorporated in 1998 and is based in Vista, California.

How the Company Makes Money

Flux Power Holdings makes money primarily through the sale of its lithium-ion battery packs and battery management systems. These products are sold directly to original equipment manufacturers (OEMs) and end-users in various industrial sectors. The company's revenue model revolves around the manufacturing and distribution of custom battery solutions to meet the specific needs of industrial customers, such as those in the material handling, airport ground support, and other sectors requiring reliable and efficient energy storage systems. Key revenue streams include product sales and service contracts, and the company may also engage in partnerships with OEMs to integrate its technology into their industrial vehicles and equipment. Significant factors contributing to its earnings include the growing demand for environmentally friendly and efficient energy solutions and the company's ability to deliver high-quality, reliable products.

Flux Power Holdings Financial Statement Overview

Summary

Flux Power Holdings demonstrates strong revenue growth but struggles with profitability due to ongoing net losses and negative equity. Improved cash flow metrics are overshadowed by high financial leverage and reliance on debt, indicating financial instability.

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
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
60.82M	66.34M	42.33M	26.26M	16.84M
	Gross Profit
17.23M	17.10M	7.30M	5.79M	2.19M
	EBIT
-6.62M	-5.41M	-15.36M	-13.48M	-12.55M
	EBITDA
-5.57M	-4.50M	-14.78M	-11.50M	-12.41M
	Net Income Common Stockholders
-8.33M	-6.74M	-15.86M	-14.45M	-16.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
643.00K	2.38M	485.00K	4.71M	726.00K
	Total Assets
32.30M	35.70M	30.88M	26.26M	13.97M
	Total Debt
16.16M	13.03M	7.75M	3.30M	12.26M
	Net Debt
15.51M	10.65M	7.27M	-1.41M	11.54M
	Total Liabilities
32.11M	26.16M	16.95M	13.26M	20.39M
	Stockholders Equity
4.40M	9.55M	13.93M	13.01M	-6.42M
Cash Flow		Free Cash Flow
-5.65M	-4.61M	-24.69M	-19.46M	-8.67M
	Operating Cash Flow
-4.80M	-3.57M	-23.89M	-18.36M	-8.34M
	Investing Cash Flow
-853.00K	-1.02M	-797.00K	-1.10M	-323.00K
	Financing Cash Flow
3.92M	6.49M	20.46M	23.45M	9.29M

Flux Power Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.71
• 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 FLUX, the sentiment is Positive. The current price of 1.71 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.56, and below the 200-day MA of 2.32, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 58.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLUX.

Flux Power Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.28B	11.80	5.30%	250.74%	4.12%	-9.02%
FLUX	56 Neutral	$28.67M	―	-385.84%	―	-5.96%	-50.28%
OESX	54 Neutral	$23.93M	―	-41.45%	―	-0.63%	60.93%
PPSI	53 Neutral	$29.73M	―	-43.18%	―	-19.60%	-483.35%
ENVX	44 Neutral	$1.18B	―	-85.88%	―	1429.35%	-36.13%
IPWR	43 Neutral	$43.78M	―	-74.64%	―	-56.74%	19.32%
GWH	36 Underperform	$28.56M	―	-130.40%	―	-16.51%	0.19%

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.