Fluence Corporation


AU$212.3m market cap

AU$0.4 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 award of a €165m (US$188m) contract to provide water treatment to Abidjan, the largest city in Ivory Coast, is transformative in our view. This turnkey project will supply 150,000m3/day of water to 4.7 million people and include a range of treatment solutions. The win establishes Fluence as a supplier of large, innovative solutions and leads us to double our FY20 adjusted EPS forecast to US$c3.8. Despite organic revenue growth in FY19 and FY20 of well over 50%, the share price implies an FY20 P/E of 7x.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 33.2 (23.6) (21.7) (7.00) N/A N/A
2018A 101.1 (8.5) (10.5) (2.49) N/A N/A
2019E 169.1 1.5 (0.8) (0.15) N/A N/A
2020E 266.5 23.0 20.7 3.84 7.4 N/A
Last updated on 19/03/2019
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 19/03/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 19.1
Forecast gearing ratio (%) N/A
Price performance
Actual 13.7 19.7 (4.8)
Relative* 12.0 7.7 (8.0)
52-week high/low A$0.5/A$0.3
*% relative to local index
Key management
Henry Charrabe CEO
Richard Irving Executive Chairman