NASDAQ:ENPH qualifies as a high growth stock and is consolidating.

In this article we will dive into ENPHASE ENERGY INC (NASDAQ:ENPH) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ENPHASE ENERGY INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Analysis for NASDAQ:ENPH

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:ENPH boasts a 9 out of 10:

• The Earnings Per Share has grown by an impressive 75.55% over the past year.
• The Earnings Per Share has been growing by 69.42% on average over the past years. This is a very strong growth
• Looking at the last year, ENPH shows a very strong growth in Revenue. The Revenue has grown by 61.11%.
• ENPH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 52.11% yearly.
• Based on estimates for the next years, ENPH will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.23% on average per year.
• ENPH is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.22% yearly.

Deciphering NASDAQ:ENPH's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:ENPH, the assigned 7 for health provides valuable insights:

• An Altman-Z score of 6.21 indicates that ENPH is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 6.21, ENPH is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
• The Debt to FCF ratio of ENPH is 1.50, which is an excellent value as it means it would take ENPH, only 1.50 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 1.50, ENPH is doing good in the industry, outperforming 72.38% of the companies in the same industry.
• Although ENPH does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• A Current Ratio of 3.44 indicates that ENPH has no problem at all paying its short term obligations.
• A Quick Ratio of 3.22 indicates that ENPH has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 3.22, ENPH is in the better half of the industry, outperforming 63.81% of the companies in the same industry.

What does the Profitability looks like for NASDAQ:ENPH

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:ENPH was assigned a score of 8 for profitability:

• ENPH has a better Return On Assets (16.52%) than 82.86% of its industry peers.
• The Return On Equity of ENPH (58.88%) is better than 96.19% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 20.46%, ENPH belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for ENPH is above the industry average of 13.12%.
• The 3 year average ROIC (17.57%) for ENPH is below the current ROIC(20.46%), indicating increased profibility in the last year.
• ENPH has a Profit Margin of 20.48%. This is in the better half of the industry: ENPH outperforms 73.33% of its industry peers.
• ENPH has a Operating Margin of 22.66%. This is in the better half of the industry: ENPH outperforms 75.24% of its industry peers.
• In the last couple of years the Operating Margin of ENPH has grown nicely.
• ENPH's Gross Margin has improved in the last couple of years.

How does the Setup look for NASDAQ:ENPH

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:ENPH this score is currently 8:

ENPH has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 124.86. Right above this resistance zone may be a good entry point.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Check the latest full fundamental report of ENPH for a complete fundamental analysis.

Check the latest full technical report of ENPH for a complete technical analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.