Looking for growth without the hefty price tag? Consider NASDAQ:ENPH.

Take a closer look at ENPHASE ENERGY INC (NASDAQ:ENPH), an affordable growth stock uncovered by our stock screener. NASDAQ:ENPH boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Growth for NASDAQ:ENPH

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:ENPH has earned a 9 for growth:

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

How do we evaluate the Valuation for NASDAQ:ENPH?

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:ENPH has achieved a 5 out of 10:

• 68.87% of the companies in the same industry are more expensive than ENPH, based on the Price/Forward Earnings ratio.
• Based on the Price/Free Cash Flow ratio, ENPH is valued cheaply inside the industry as 80.19% of the companies are valued more expensively.
• The excellent profitability rating of ENPH may justify a higher PE ratio.
• A more expensive valuation may be justified as ENPH's earnings are expected to grow with 23.70% in the coming years.

ChartMill's Evaluation of Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ENPH has achieved a 7 out of 10:

• ENPH has an Altman-Z score of 6.36. This indicates that ENPH is financially healthy and has little risk of bankruptcy at the moment.
• ENPH's Altman-Z score of 6.36 is fine compared to the rest of the industry. ENPH outperforms 67.92% of its industry peers.
• ENPH has a debt to FCF ratio of 1.50. This is a very positive value and a sign of high solvency as it would only need 1.50 years to pay back of all of its debts.
• ENPH has a Debt to FCF ratio of 1.50. This is in the better half of the industry: ENPH outperforms 72.64% of its industry peers.
• Even though the debt/equity ratio score it not favorable for ENPH, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• 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 63.21% of the companies in the same industry.

Profitability Examination for NASDAQ:ENPH

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ENPH, the assigned 8 is a significant indicator of profitability:

• With an excellent Return On Assets value of 16.52%, ENPH belongs to the best of the industry, outperforming 82.08% of the companies in the same industry.
• ENPH has a Return On Equity of 58.88%. This is amongst the best in the industry. ENPH outperforms 96.23% 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 83.02% 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 13.00%.
• 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 better Profit Margin (20.48%) than 74.53% of its industry peers.
• ENPH's Operating Margin of 22.66% is fine compared to the rest of the industry. ENPH outperforms 73.58% of its industry peers.
• ENPH's Operating Margin has improved in the last couple of years.
• ENPH's Gross Margin has improved in the last couple of years.

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

For an up to date full fundamental analysis you can check the fundamental report of ENPH

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.