Fluence Corporation


AU$215.6m market cap

AU$0.35 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

The contrasting trends observed in Q3 continued into Q4. While Custom Engineering Solutions (CES) sales stalled, Smart Product Solutions (SPS) grew substantially (doubling q-o-q). Guidance for SPS to rise ‘at least’ 20% in FY20 appears prudent given current uncertainties over China. However, it probably understates the commercial progress made in the last six months. We trim our FY20 top-line forecast, but with financial closure on the Ivory Coast contract achieved, Fluence should still be EBITDA positive.

Y/E Dec
Revenue (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 60.0 (19.8) (22.0) (4.0) N/A N/A
2020E 156.0 3.5 1.3 0.2 118.9 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 20/02/2020
Share price graph
Balance sheet
Forecast net cash (US$m) 19
Forecast gearing ratio (%) N/A
Price performance
Actual (19.8) (26.6) 4.5
Relative* (20.4) (30.9) (11.0)
52-week high/low A$0.6/A$0.3
*% relative to local index
Key management
Henry Charrabe CEO
Richard Irving Executive Chairman

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