Stock Analysis

Investors bid Fluence Energy (NASDAQ:FLNC) up US$103m despite increasing losses YoY, taking one-year return to 23%

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It might be of some concern to shareholders to see the Fluence Energy, Inc. (NASDAQ:FLNC) share price down 17% in the last month. But that doesn't change the reality that over twelve months the stock has done really well. To wit, it had solidly beat the market, up 23%.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

See our latest analysis for Fluence Energy

Fluence Energy wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, Fluence Energy's revenue grew by 80%. That's a head and shoulders above most loss-making companies. While the share price gain of 23% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at Fluence Energy. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

NasdaqGS:FLNC Earnings and Revenue Growth March 25th 2023

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Fluence Energy will earn in the future (free profit forecasts).

A Different Perspective

Fluence Energy boasts a total shareholder return of 23% for the last year. We regret to report that the share price is down 5.4% over ninety days. Shorter term share price moves often don't signify much about the business itself. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Fluence Energy , and understanding them should be part of your investment process.

Fluence Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

What are the risks and opportunities for Fluence Energy?

Fluence Energy, Inc., through its subsidiaries, offers energy storage products and services, and artificial intelligence enabled digital applications for renewables and storage applications in the Americas, Asia Pacific, Europe, Middle-East, and Africa.

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  • Trading at 75.4% below our estimate of its fair value

  • Earnings are forecast to grow 98.7% per year


  • Volatile share price over the past 3 months

  • Has less than 1 year of cash runway

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