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Flux Power Holdings (FLUX)
NASDAQ:FLUX
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Flux Power Holdings
(NASDAQ:FLUX)
62Neutral
Positive Factors
Financial Improvement
The company improved its financial position by ending the second quarter of fiscal year 2025 with $0.9M in cash and reducing debt to $9.7M.
Leadership
The appointment of Krishna Vanka as CEO, who has experience leading a major energy company, is seen as a positive leadership change.
Market Position
Flux has a leading market position in a market with strong secular growth trends and has made large strides toward reaching profitability.
Negative Factors
Cost Pressures
FLUX relies on raw materials, semiconductors, and lithium-ion battery cells, some of which may come under cost pressure due to tariffs.
Order Decline
Orders of $50.3M in FY24 were down 16% y/y, resulting in a book-to-bill of 0.8x for the year.
Revenue Performance
FY24 revenue of $60.8M, down 8.5% y/y, missed analyst's estimate and consensus.
Flux Power Holdings (FLUX) vs. S&P 500 (SPY)
Market Cap
$33.87M
Dividend YieldN/A
Average Volume (3M)88.98K
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth-5.96%
EPS Growth-50.28%
CountryUS
Employees119
SectorIndustrials
Sector Strength67
IndustryIndustrial Goods
Share Statistics
EPS (TTM)-0.54
Shares Outstanding16,682,465
10 Day Avg. Volume120,257
30 Day Avg. Volume88,980
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.53
Price to Cash Flow (P/CF)-15.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.20Price Target Upside156.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Flux Power Holdings Business Overview & Revenue Model
Company DescriptionFlux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the United States. It offers battery management system (BMS) that provides cell balancing, charging, discharging, monitoring, and communication between the pack and the forklift. The company also provides 24-volt onboard chargers for its Class 3 Walkie LiFT packs; and smart wall mounted chargers to interface with its BMS. The company sells its products directly to small companies and end-users, as well as through original equipment manufacturers, lift equipment dealers, and battery distributors. Flux Power Holdings, Inc. was incorporated in 1998 and is based in Vista, California.
How the Company Makes MoneyFlux Power Holdings generates revenue by manufacturing and selling lithium-ion battery packs and energy storage systems. The company's key revenue streams include direct sales of its battery products to original equipment manufacturers (OEMs) and end-users across various industrial sectors. Flux Power also benefits from partnerships with manufacturers that integrate its battery solutions into their equipment, enhancing the overall value proposition. The adoption of lithium-ion technology over conventional lead-acid batteries due to its efficiency and environmental benefits significantly contributes to the company's earnings.
Flux Power Holdings Financial Statement Overview
Summary
Flux Power Holdings presents a challenging financial picture. Revenue decline, persistent losses, and high leverage pose risks to its financial stability. However, improvements in gross profit and cash flow conversion offer some positive signs. Strategic adjustments are necessary to enhance profitability and manage debt levels effectively.Income Statement
Flux Power Holdings shows a mixed performance on the income statement. The company experienced a revenue decline of approximately 8.32% from 2023 to 2024, after a previous year of growth. Despite an improvement in gross profit margin to 28.33% in 2024 compared to 25.77% in 2023, net profit margin remains negative at -13.70%. Both EBIT and EBITDA margins are negative, indicating operational challenges.45
Neutral
Balance Sheet
The balance sheet highlights some concerns for Flux Power Holdings. The debt-to-equity ratio is high at 3.63 in 2024, indicating significant leverage. Stockholders' equity has substantially decreased, affecting the equity ratio, which stands at 12.54%. Return on Equity (ROE) is negative due to the net loss, indicating inefficiencies in generating returns from shareholder investments.40
Negative
Cash Flow
Flux Power Holdings' cash flow statement indicates some improvements and challenges. The operating cash flow to net income ratio is 0.58, reflecting some ability to convert earnings into cash flow, despite negative values. The free cash flow growth rate is negative, but the company has managed to reduce its free cash flow deficit slightly compared to previous years.50
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 42.33M | 60.82M | 66.34M | 42.33M | 26.26M | 16.84M | Gross Profit |
| 7.30M | 17.23M | 17.10M | 7.30M | 5.79M | 2.19M | EBIT |
| -15.36M | -6.62M | -5.41M | -15.36M | -13.48M | -12.55M | EBITDA |
| -14.56M | -6.62M | -4.50M | -14.78M | -11.50M | -12.41M | Net Income Common Stockholders |
| -15.66M | -8.33M | -6.74M | -15.86M | -14.45M | -16.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 900.00K | 1.58M | 2.38M | 485.00K | 4.71M | 726.00K | Total Assets |
| 5.92M | 35.09M | 35.70M | 30.88M | 26.26M | 13.97M | Total Debt |
| 3.47M | 16.16M | 13.03M | 7.75M | 3.30M | 12.26M | Net Debt |
| 2.57M | 15.51M | 10.65M | 7.27M | -1.41M | 11.54M | Total Liabilities |
| 6.27M | 32.11M | 26.16M | 16.95M | 13.26M | 20.39M | Stockholders Equity |
| -345.00K | 4.40M | 9.55M | 13.93M | 13.01M | -6.42M |
| Cash Flow | Free Cash Flow | ||||
| -24.69M | -4.80M | -4.61M | -24.69M | -19.46M | -8.67M | Operating Cash Flow |
| -23.89M | -4.80M | -3.57M | -23.89M | -18.36M | -8.34M | Investing Cash Flow |
| -797.00K | -853.00K | -1.02M | -797.00K | -1.10M | -323.00K | Financing Cash Flow |
| 20.46M | 3.92M | 6.49M | 20.46M | 23.45M | 9.29M |
Flux Power Holdings Technical Analysis
Positive
2.03
Price Trends
1.63
Positive
1.80
Positive
2.53
Negative
Market Momentum
0.13
Negative
63.75
Neutral
78.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLUX, the sentiment is Positive. The current price of 2.03 is above the 20-day moving average (MA) of 1.58, above the 50-day MA of 1.63, and below the 200-day MA of 2.53, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 63.75 is Neutral, neither overbought nor oversold. The STOCH value of 78.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLUX.
Flux Power Holdings Risk Analysis
Flux Power Holdings disclosed 32 risk factors in its most recent earnings report. Flux Power Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flux Power Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $7.97B | 81.48 | 11.30% | ― | -41.92% | -76.24% | |
62 Neutral | $33.87M | ― | -385.84% | ― | -5.96% | -50.28% | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% | |
59 Neutral | $5.07B | ― | -5.49% | ― | 10.53% | 90.76% | |
54 Neutral | $94.94M | ― | -69.69% | ― | -10.24% | 37.82% | |
45 Neutral | $104.03M | ― | -18.96% | ― | 11.09% | 0.41% | |
43 Neutral | $1.40B | ― | -90.88% | ― | -29.45% | -10.79% |
* Industrials Sector Average
Performance Comparison
FLUX
Flux Power Holdings
2.03
-2.32
-53.33%
ENPH
Enphase Energy
61.65
-56.64
-47.88%
FCEL
Fuelcell Energy
4.70
-31.30
-86.94%
PLUG
Plug Power
1.34
-2.10
-61.05%
BLNK
Blink Charging Co
0.94
-2.04
-68.46%
BE
Bloom Energy
20.33
8.60
73.32%
Flux Power Holdings Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: 25.31% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging quarter with revenue decline and increased losses, but highlights ongoing initiatives to expand sales and product offerings, maintain gross margin stability, and explore new market opportunities.Highlights
Expansion of Sales and Marketing Initiatives
Flux Power is expanding its sales force and marketing initiatives to increase revenue growth and secure new customer relationships, especially focusing on Fortune 100 customers.
New Product Launches and Partnerships
The company is launching new heavy-duty models, introducing a private label program with a top-tier forklift OEM, and advancing fast-charging technology and modularization of battery cells.
Gross Margin Stability
Despite reduced revenue, gross margin held steady at 30% in fiscal Q3 2024, with long-term goals of exceeding 40% through strategic supply chain and cost improvement initiatives.
Lowlights
Revenue Decline
Revenue decreased by 4% to $14.5 million in fiscal Q3 2024, compared to $15.1 million in the same quarter of 2023, due to lower capital spending and shipment delays.
Increased Adjusted EBITDA Loss
Adjusted EBITDA loss increased to $1.4 million in fiscal Q3 2024 from a loss of $700,000 in the year-ago quarter, primarily due to lower revenue and higher warranty expenses.
Backlog Reduction
The backlog decreased to $18.5 million from $25 million a year ago, affected by delays in forklift deliveries and economic uncertainty.
Net Loss Increase
Net loss increased to $2.6 million in fiscal Q3 2024, compared to a loss of $1.4 million in the same quarter of 2023, due to decreased gross profit and increased operating and interest expenses.
Company Guidance
During the Flux Power Holdings Third Quarter Fiscal Year 2024 Earnings Call, the company discussed several key metrics and business strategies. Revenue for the fiscal third quarter decreased to $14.5 million, down from $15.1 million the previous year, largely due to lower capital spending and shipment delays. The gross margin slightly decreased to 30% from 31% last year, with a gross profit of $4.4 million. The company reported an adjusted EBITDA loss of $1.4 million compared to a $0.7 million loss in the same quarter of 2023. The open order backlog was noted at $18.5 million, down from $25 million a year ago. To address these challenges, Flux Power is focusing on initiatives to stimulate revenue growth and improve profitability, including the expansion of its sales force, new product launches, and cost reduction strategies. Additionally, the company is working on enhancing its gross margin with a long-term target of exceeding 40%, and it has also emphasized the importance of building scale through strategic partnerships and technology advancements.Flux Power Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Flux Power Holdings Reports Strong H1 2025 Results
Positive
Mar 20, 2025
Flux Power Holdings reported financial results for the first half of fiscal year 2025, showing revenue and gross margin growth driven by increased demand for their innovative products. Despite some delays in customer orders due to higher interest rates, the company maintains a positive outlook with a significant order backlog and ongoing strategic initiatives to enhance sales and profitability. Key developments include launching a private label program with a major forklift OEM, expanding product lines, and forming partnerships to improve battery recycling processes.
Executive/Board ChangesShareholder Meetings
Flux Power Holdings Announces Leadership Changes in 2025
Neutral
Mar 10, 2025
On March 10, 2025, Flux Power Holdings announced the retirement of Ronald F. Dutt from his roles as director, Chairman, CEO, and President, with Dale T. Robinette and Krishna Vanka appointed as the new Chairman and CEO, respectively. Vanka, with extensive experience in renewable energy and technology sectors, is expected to lead the company towards growth and innovation. The company also set May 28, 2025, for its Annual Meeting of Stockholders, advancing the date by more than 30 days from the previous year, and outlined new deadlines for stockholder proposals.
Delistings and Listing ChangesRegulatory Filings and Compliance
Flux Power Holdings Faces Nasdaq Compliance Deadline
Neutral
Feb 25, 2025
On February 21, 2025, Flux Power Holdings received a notice from Nasdaq indicating non-compliance with the Nasdaq Listing Rule 5250(c)(1) due to delayed filing of its quarterly reports for periods ending September 30, 2024, and December 31, 2024. The company has until March 10, 2025, to submit an updated compliance plan. If accepted, Nasdaq may grant an extension until April 14, 2025, to file the delinquent reports. This notice does not immediately affect the company’s stock listing, and Flux Power is actively working to address the issue.
Business Operations and StrategyFinancial Disclosures
Flux Power Holdings Reports 2024 Financial Results
Neutral
Jan 30, 2025
Flux Power Holdings reported its fiscal year 2024 financial results, highlighting a decrease in revenue to $60.8 million from $66.5 million in the previous year, but an improved gross profit of $17.2 million. The company completed the restatement of past financials, identifying $5.2 million in cumulative adjustments, primarily from excess and obsolete inventory, without impacting cash flow. Despite delays in order shipments due to higher interest rates and geopolitical uncertainties, Flux Power remains optimistic about future growth and profitability, supported by a $17.5 million order backlog as of December 31, 2024.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.