Fluence Corporation

AU: FLC

AU$118.7m market cap

AU$0.19 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

Fluence’s trading update on 23 March indicated that it has yet to see any impact on the business from COVID-19 and it remains on track to meet its SPS guidance (‘at least’ US$32m, 20% y-o-y growth). The recent SUBRE win ($7m, its largest SUBRE order to date), plus the Aspiral sale in China, will make a significant contribution to reaching this target and should reassure investors the company can still close business amidst the current uncertainty.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 101.1 (8.5) (10.5) (2.5) N/A N/A
2019A 61.3 (27.8) (30.9) (5.8) N/A N/A
2020E 156.0 3.5 1.3 0.2 66.4 N/A
2021E N/A N/A N/A N/A N/A N/A
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 11/08/2020
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Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (US$m) 4.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (19.1) (33.3) (60.4)
Relative* (21.9) (41.4) (57.8)
52-week high/low A$0.6/A$0.2
*% relative to local index
Key management
Henry Charrabe CEO
Richard Irving Executive Chairman

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