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Fluence Corporation (FLC)

Business description

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.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2016A 0.8 (8.8) (9.1) (4.27) N/A N/A
2017A 33.2 (23.6) (21.7) (7.00) N/A N/A
2018E 105.6 (17.5) (19.1) (4.04) N/A N/A
2019E 149.1 (1.8) (3.7) (0.70) N/A N/A

Last updated on 01/02/2019

Investment summary

An impressive Q4 (73% y-o-y organic revenue growth) saw Fluence deliver on its FY18 target. Demand for its higher margin smart product solution (SPS) remains strong with revenues expected to ‘at least’ double y-o-y in FY19. Its target of EBITDA breakeven by Q419 is reaffirmed and we expect our profit forecasts will be largely unchanged by these results. With $38m of net cash and growing evidence of execution, we believe investors can now focus on the long-term growth story.

Last updated on 01/02/2019

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 01/02/2019

Key management

Henry Charrabe, CEO
Richard Irving, Executive Chairman

Company address

Level 3, 62 Lygon Street, Carlton
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