ASX:FLC

Stock Analysis Report

Executive Summary

Fluence Corporation Limited provides packaged water and wastewater treatment solutions in North America, South America, the Middle East, Europe, and China.


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

How has Fluence's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FLC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

FLC

-3.9%

AU Machinery

0.02%

AU Market


1 Year Return

10.8%

FLC

31.2%

AU Machinery

14.6%

AU Market

Return vs Industry: FLC underperformed the Australian Machinery industry which returned 32.4% over the past year.

Return vs Market: FLC underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

FLCIndustryMarket
7 Day-1.1%-3.9%0.02%
30 Day-8.0%-0.2%0.2%
90 Day48.4%1.4%5.7%
1 Year10.8%10.8%32.5%31.2%19.7%14.6%
3 Year-51.6%-51.6%-37.5%-38.6%38.7%20.2%
5 Year130.0%130.0%71.0%40.5%50.6%17.1%

Price Volatility Vs. Market

How volatile is Fluence's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fluence undervalued compared to its fair value and its price relative to the market?

3.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FLC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FLC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FLC is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: FLC is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FLC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FLC is overvalued based on its PB Ratio (3.4x) compared to the AU Machinery industry average (1.3x).


Next Steps

Future Growth

How is Fluence forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

142.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: FLC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FLC's is expected to become profitable in the next 3 years.

Revenue vs Market: FLC's revenue (47.6% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: FLC's revenue (47.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FLC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Fluence performed over the past 5 years?

-48.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLC is currently unprofitable.

Growing Profit Margin: FLC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FLC is unprofitable, and losses have increased over the past 5 years at a rate of -48.5% per year.

Accelerating Growth: Unable to compare FLC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FLC is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-19.1%).


Return on Equity

High ROE: FLC has a negative Return on Equity (-122.98%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fluence's financial position?


Financial Position Analysis

Short Term Liabilities: FLC's short term assets ($97.7M) exceed its short term liabilities ($80.1M).

Long Term Liabilities: FLC's short term assets ($97.7M) exceed its long term liabilities ($10.7M).


Debt to Equity History and Analysis

Debt Level: FLC's debt to equity ratio (15.1%) is considered satisfactory.

Reducing Debt: FLC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: FLC has a high level of physical assets or inventory.

Debt Coverage by Assets: FLC's debt is covered by short term assets (assets are 12.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FLC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: FLC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -88.2% each year


Next Steps

Dividend

What is Fluence's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FLC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FLC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FLC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FLC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FLC is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FLC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Henry Charrabé 0

1.8yrs

Tenure

US$1,299,060

Compensation

Mr. Henry J. Charrabé has been the Chief Executive Officer and Managing Director of Fluence Corporation Limited (formerly, Emefcy Group Limited) since July 14, 2017. Mr. Charrabé was President and Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Henry's total compensation ($USD1.30M) is above average for companies of similar size in the Australian market ($USD509.47K).

Compensation vs Earnings: Insufficient data to compare Henry's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Henry Charrabé
MD, CEO & Director1.8yrsUS$1.30mno data
Ilan Wilf
Global Vice President of Sales0.3yrsUS$336.76kno data
Ross Kennedy
Company Secretary & Board Advisor0yrsUS$203.53kno data
Francesco Fragasso
Chief Financial Officer1.1yrsno datano data
Anthony Hargrave
Chief Operating Officer1yrsno datano data
Spencer Smith
Chief Legal Officer1.8yrsno datano data
Erik Arfalk
Chief Marketing Officer1.2yrsno datano data

1.2yrs

Average Tenure

Experienced Management: FLC's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Henry Charrabé
MD, CEO & Director1.8yrsUS$1.30mno data
Ross Kennedy
Company Secretary & Board Advisor0yrsUS$203.53kno data
Richard Irving
Non-Executive Chairman3.4yrsUS$208.69kno data
Rengarajan Ramesh
Non-Executive Director1.8yrsUS$88.26kno data
R. Haghighat
Non-Executive Director3.4yrsUS$143.28kno data
Peter Marks
Non-Executive Director4.2yrsUS$118.53kno data
Arnon Goldfarb
Non-Executive Director1.7yrsUS$23.79kno data
Paul Donnelly
Non-Executive Director0.8yrsno datano data

1.8yrs

Average Tenure

58yo

Average Age

Experienced Board: FLC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FLC insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Fluence Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fluence Corporation Limited
  • Ticker: FLC
  • Exchange: ASX
  • Founded: 1981
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: AU$252.566m
  • Shares outstanding: 537.38m
  • Website: https://www.fluencecorp.com

Number of Employees


Location

  • Fluence Corporation Limited
  • 10 Bank Street
  • Suite 830
  • White Plains
  • New York
  • 10606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2007
4SVEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2007
FLCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2007
EMFG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2007

Biography

Fluence Corporation Limited provides packaged water and wastewater treatment solutions in North America, South America, the Middle East, Europe, and China. The company offers NIROBOX for water desalination and treatment of brackish water; Ultrafiltration solutions to remove suspended solids, endotoxins, bacteria, viruses, and other pathogens from feed water; and reverse osmosis systems, which are used in desalination and other water purification processes. It also provides Aspiral membrane aerated biofilm reactor (MABR), a smart wastewater treatment solution; Subre MABR for existing or new wastewater treatment; ECOBOX containerized treatment for water reuse; prefabricated and packaged wastewater treatment plants; aeration equipment; SmartAerator system; and dissolved air flotation systems for clarification of suspended particles from wastewater. In addition, the company offers project financing and after-sale support services; and Smart Operations data analytics software suite that helps to keep an eye on plant’s processes. It serves municipal, commercial, power, food and beverage, pharmaceutical, microelectronics, oil and gas, petrochemical, metal, mining, automotive, pulp and paper, textile, cosmetic, military, and general industries. The company was formerly known as Emefcy Group Limited and changed its name to Fluence Corporation Limited in July 2017. Fluence Corporation Limited was founded in 1981 and is headquartered in White Plains, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/05/24 10:34
End of Day Share Price2019/05/24 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.