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FLUX

Flux Power Holdings NasdaqCM:FLUX Stock Report

Last Price

US$2.98

Market Cap

US$47.7m

7D

2.8%

1Y

-58.0%

Updated

18 Aug, 2022

Data

Company Financials +
FLUX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance0/6
Financial Health6/6
Dividends0/6

FLUX Stock Overview

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.

Flux Power Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Flux Power Holdings
Historical stock prices
Current Share PriceUS$2.98
52 Week HighUS$8.64
52 Week LowUS$1.89
Beta1.01
1 Month Change24.17%
3 Month Change43.96%
1 Year Change-57.97%
3 Year Change-72.91%
5 Year Change-43.24%
Change since IPO-98.03%

Recent News & Updates

Jul 04

Flux Power: Upgrading Shares On Expectations For Easing Supply Chain And Liquidity Pressures

Company reports respectable Q3 results well ahead of consensus expectations. In addition, backlog levels hit a new record. On the conference call, management disclosed a letter of intent with a large Fortune 100 customer with the potential to generate more than $20 million in revenue over two years. Subsequent to quarter end, the company secured some much-needed liquidity which in combination with lower working capital requirements and projected higher margins should be sufficient for the time being. With near-term liquidity concerns successfully addressed and supply chain disruptions easing, I am upgrading shares to "Hold". Six weeks ago, lithium-ion battery manufacturer Flux Power Holdings (FLUX) or "Flux Power" reported better-than-expected Q3/FY2022 results with both top- and bottom line results exceeding expectations. In addition, the company reported record backlog levels as its book-to-bill ratio for the quarter was substantially above 1 again: Company SEC-Filing According to statements made on the conference call, Flux Power also received a non-binding, multi-year letter of intent ("LOI") from one of its Fortune 100 customers which is looking to secure build slots as part of its ongoing material handling fleet conversion. Potential revenue derived from this LOI might exceed $20 million over a two-year time frame. That said, the massive backlog increase experienced over the past couple of quarters has been partially caused by ongoing supply chain disruptions which have also impacted gross margins: Company Presentation In addition, cash flows have been pressured by the requirement to secure sufficient inventory: Company Presentation Free cash flow for the quarter was negative $4.1 million, a meaningful improvement from the negative $11.3 million recorded in Q2. At the end of Q3, cash and cash equivalents were down to a paltry $3.8 million with another $2.5 million available under the company's $6.0 million revolving credit facility with Silicon Valley Bank. Subsequent to quarter end, the company managed to secure an aggregate $6.0 million in additional liquidity: On May 11, Flux Power entered into an up to $5.0 million subordinated line of credit for short-term working capital purposes until December 31, 2022. As of May 12, aggregate lender commitments under the facility were $4.0 million. That said, terms of the facility are beyond ugly with an interest rate of 15% per annum and meaningful upfront fees. In addition, lenders extracted 160,000 warrants with an exercise price of $2.53. At the election of the company, repayments can be made in cash or common stock. The company also has the right to extend the due date by one year upon payment of a 2% commitment fee. On June 23, Silicon Valley Bank increased the amount of the company's revolving credit facility from $6.0 to $8.0 million in return for an increased interest rate (Prime Rate +3.5%). The bank also extracted 40,800 warrants with an exercise price of $2.23. As a result, Flux Power has removed the recent going concern warning from its quarterly report on form 10-Q: We believe that our existing cash and additional funding available under our SVB Line of Credit, combined with funds available to us under our new subordinated line of credit of up to $4.0 million will be sufficient to meet our anticipated capital resources to fund planned operations for the next twelve months. On the conference call, management pointed to modest improvements in supply chain issues and projected inventory levels to decline going forward which should result in significantly reduced cash usage.

Shareholder Returns

FLUXUS ElectricalUS Market
7D2.8%2.1%1.4%
1Y-58.0%-11.5%-8.4%

Return vs Industry: FLUX underperformed the US Electrical industry which returned -13.3% over the past year.

Return vs Market: FLUX underperformed the US Market which returned -9% over the past year.

Price Volatility

Is FLUX's price volatile compared to industry and market?
FLUX volatility
FLUX Average Weekly Movement10.9%
Electrical Industry Average Movement11.2%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: FLUX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: FLUX's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1998121Ron Dutthttps://www.fluxpower.com

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.

Flux Power Holdings Fundamentals Summary

How do Flux Power Holdings's earnings and revenue compare to its market cap?
FLUX fundamental statistics
Market CapUS$47.67m
Earnings (TTM)-US$16.68m
Revenue (TTM)US$35.46m

1.3x

P/S Ratio

-2.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FLUX income statement (TTM)
RevenueUS$35.46m
Cost of RevenueUS$29.41m
Gross ProfitUS$6.05m
Other ExpensesUS$22.73m
Earnings-US$16.68m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.04
Gross Margin17.06%
Net Profit Margin-47.02%
Debt/Equity Ratio21.6%

How did FLUX perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is FLUX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FLUX?

Other financial metrics that can be useful for relative valuation.

FLUX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA-3.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does FLUX's PS Ratio compare to its peers?

FLUX PS Ratio vs Peers
The above table shows the PS ratio for FLUX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.7x
NILE BitNile Holdings
1.5x34.0%US$104.6m
CBAT CBAK Energy Technology
0.7xn/aUS$128.1m
OESX Orion Energy Systems
0.4x18.4%US$47.1m
APWC Asia Pacific Wire & Cable
0.08xn/aUS$37.6m
FLUX Flux Power Holdings
1.3x31.2%US$47.7m

Price-To-Sales vs Peers: FLUX is expensive based on its Price-To-Sales Ratio (1.3x) compared to the peer average (0.7x).


Price to Earnings Ratio vs Industry

How does FLUX's PE Ratio compare vs other companies in the US Electrical Industry?

Price-To-Sales vs Industry: FLUX is good value based on its Price-To-Sales Ratio (1.3x) compared to the US Electrical industry average (2.4x)


Price to Sales Ratio vs Fair Ratio

What is FLUX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FLUX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: FLUX is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).


Share Price vs Fair Value

What is the Fair Price of FLUX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FLUX ($2.98) is trading below our estimate of fair value ($42.85)

Significantly Below Fair Value: FLUX is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Flux Power Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


61.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLUX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

High Growth Earnings: FLUX is expected to become profitable in the next 3 years.

Revenue vs Market: FLUX's revenue (31.2% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: FLUX's revenue (31.2% 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 FLUX's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Flux Power Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-21.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FLUX is currently unprofitable.

Growing Profit Margin: FLUX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FLUX is unprofitable, and losses have increased over the past 5 years at a rate of 21.9% per year.

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

Earnings vs Industry: FLUX is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (24.8%).


Return on Equity

High ROE: FLUX has a negative Return on Equity (-102.79%), as it is currently unprofitable.


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Financial Health

How is Flux Power Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: FLUX's short term assets ($34.8M) exceed its short term liabilities ($20.5M).

Long Term Liabilities: FLUX's short term assets ($34.8M) exceed its long term liabilities ($2.5M).


Debt to Equity History and Analysis

Debt Level: FLUX has more cash than its total debt.

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


Balance Sheet


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: FLUX has sufficient cash runway for 2 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: FLUX is forecast to have sufficient cash runway for 8 months based on free cash flow estimates, but has since raised additional capital.


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Dividend

What is Flux Power Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FLUX has not reported any payouts.


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Management

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

5.7yrs

Average management tenure


CEO

Ron Dutt (75 yo)

8.42yrs

Tenure

US$610,494

Compensation

Mr. Ronald F. Dutt, also known as Ron, has been Executive Chairman of Flux Power Holdings, Inc. since June 28, 2019 and has been its Chief Executive Officer since March 19, 2014 and has been its President...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD610.49K) is about average for companies of similar size in the US market ($USD758.99K).

Compensation vs Earnings: Ron's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: FLUX's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: FLUX's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.7%.


Top Shareholders

Company Information

Flux Power Holdings, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Flux Power Holdings, Inc.
  • Ticker: FLUX
  • Exchange: NasdaqCM
  • Founded: 1998
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Implied Market Cap: US$47.670m
  • Shares outstanding: 16.00m
  • Website: https://www.fluxpower.com

Number of Employees


Location

  • Flux Power Holdings, Inc.
  • 2685 South Melrose Drive
  • Vista
  • California
  • 92081
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


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.