Fluence (NAS:FLNC) — mrkt cap $1.12B; Price $6.19; EV/EBITDA 61
PASS. Fluence is a global leader in energy storage technology and services, established as a joint venture by Siemens and The AES Corporation in 2018. As an integrator, FLNC provides advanced battery-based energy storage solutions that enable reliable, cost-effective, and sustainable power systems worldwide. Since its IPO, the company’s stock has declined by nearly 85%, largely due to mounting competition from Tesla and Chinese manufacturers. Originally one of the earliest innovators in energy storage, Fluence offered bundled solutions to its customers. However, as clients have grown more sophisticated, the market has shifted toward increasingly modular offerings. FLNC now faces pressure from more vertically integrated and better-funded competitors, and while the industry as a whole continues to expand, that growth is not sufficient to offset these challenges.
Payoneer Global (NAS:PAYO) — mrkt cap $3.5B; Price $9.95; EV/EBITDA 17
PASS. PAYO is a fintech focused on cross-border payments for SMBs, helping them receive and transfer funds from global marketplaces. The company processes ~$65 billion in annual volume and offers SMBs a wallet with invoicing, bill payments, currency conversion, and a debit card. Nearly all major marketplaces, including Etsy and Upwork, use Payoneer for seamless freelancer and SMB payments, making it a well-known brand in emerging markets. However, competition has intensified, particularly from Wise, which offers many of the same services while also passing interest on float back to customers—a growing expectation among SMBs (in contrast to PAYO which retains the interest income). The market is more crowded, putting pressure on PAYO’s ability to differentiate and grow margins. While the company is trading at a reasonable valuation, we believe growth concerns limit upside and are waiting for a better entry point.
Angi Inc (NAS:ANGI) — mrkt cap $865mm; Price $1.72; EV/EBITDA 9
PASS. Angi operates as a marketplace and lead generation platform connecting homeowners with service professionals while also fulfilling some services directly. IAC will be spinning off Angi by the end of Q1. Post-spin, IAC’s CEO, Joey Levin, is transitioning to become Angi’s chairman. The core issue with Angi is its reliance on heavy advertising spend to drive home services demand, which in turn attracts service providers willing to pay for leads. Home services remain inherently fragmented and difficult to standardize, making fixed pricing and seamless bookings a challenge. The company’s top-line revenue has been shrinking, with management claiming to have cut unprofitable traffic and pivoted to a consumer choice model. While this shift improves customer experience, it also means less control over matching (and gross margin). Ultimately, we lack confidence in Angi’s top line health to make an investment despite its optically low valuation.