Fluence Corporation

AU: FLC

AU$255.3m market cap

AU$0.48 last close

Fluence is a global supplier of water and wastewater treatment solutions. Its decentralised products provide municipal customers with ‘plug and play’ solutions that are both quicker to deploy and substantially cheaper than traditional alternatives.

Investment summary

Following an extremely healthy Q1 for bookings (see Exceptional bookings growth), Fluence has announced another large custom engineered solution (CES) win. We make no changes to our estimates at this point, but the win should improve confidence that FY19 figures are achievable.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 33.2 (23.6) (21.7) (7.0) N/A N/A
2018A 101.1 (8.5) (10.5) (2.5) N/A N/A
2019E 152.0 (2.3) (4.6) (0.8) N/A N/A
2020E 266.5 23.0 20.6 3.8 8.9 N/A
Last updated on 22/05/2019
Industry outlook

Fluence’s ‘plug and play’ solutions can cost-effectively boost the performance of existing centralised treatment plants and address unserved, greenfield rural populations. Aspiral and SUBRE are based on a proprietary technology (MABR) that offers both superior treatment and lower energy costs. We see rising government spending on rural wastewater treatment in China as a particularly large opportunity.

Last updated on 22/05/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (US$m) 14.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (10.4) 53.2 8.0
Relative* (13.7) 45.0 0.6
52-week high/low A$0.6/A$0.3
*% relative to local index
Key management
Henry Charrabe CEO
Richard Irving Executive Chairman