Is Fluence Energy Stock Built to Withstand More Downside?

Fluence Energy (FLNC) stock is down 12.9% in a day. The recent FLNC slide reflects analyst downgrades citing valuation concerns and premature optimism for strategic advances, but sharp drops often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?

Before judging its downturn reslience, let’s look at where Fluence Energy stands today.

• Size: Fluence Energy is a $2.4 Bil company with $2.3 Bil in revenue currently trading at $18.57.
• Fundamentals: Last 12 month revenue growth of -16.1% and operating margin of -2.0%.
• Liquidity: Has Debt to Equity ratio of 0.16 and Cash to Assets ratio of 0.29
• Valuation: Fluence Energy stock is currently trading at P/E multiple of -50.4 and P/EBIT multiple of -52.5
• Has returned (median) 21% within a year following sharp dips since 2010. See FLNC Dip Buy Analysis.

These metrics point to a Weak operational performance, alongside Low valuation – making the stock Fairly Priced. For details, see Buy or Sell FLNC Stock

That brings us to the key consideration for investors worried about this fall: how resilient is FLNC stock if markets turn south? This is where our downturn resilience framework comes in. Suppose FLNC stock falls another 20-30% to $13 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.

2022 Inflation Shock

• FLNC stock fell 83.2% from a high of $37.61 on 15 November 2021 to $6.31 on 12 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $31.13 on 18 July 2023 , and currently trades at $18.57

 
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