Investors should take notice of NASDAQ:ENPH—it offers a great deal for the fundamentals it presents.

ENPHASE ENERGY INC (NASDAQ:ENPH) was identified as a decent value stock by our stock screener. NASDAQ:ENPH scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Assessment of 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 7 out of 10:

• 73.33% of the companies in the same industry are more expensive than ENPH, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 24.48, ENPH is valued a bit cheaper.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of ENPH indicates a somewhat cheap valuation: ENPH is cheaper than 78.10% of the companies listed in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 18.10. ENPH is valued slightly cheaper when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ENPH indicates a somewhat cheap valuation: ENPH is cheaper than 68.57% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, ENPH is valued cheaper than 92.38% of the companies in the same industry.
• The excellent profitability rating of ENPH may justify a higher PE ratio.
• ENPH's earnings are expected to grow with 21.77% in the coming years. This may justify a more expensive valuation.

A Closer Look at Profitability for NASDAQ:ENPH

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ENPH scores a 8 out of 10:

• Looking at the Return On Assets, with a value of 16.09%, ENPH belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
• With an excellent Return On Equity value of 56.35%, ENPH belongs to the best of the industry, outperforming 96.19% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 19.47%, ENPH belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
• ENPH had an Average Return On Invested Capital over the past 3 years of 17.57%. This is above the industry average of 12.90%.
• The last Return On Invested Capital (19.47%) for ENPH is above the 3 year average (17.57%), which is a sign of increasing profitability.
• The Profit Margin of ENPH (21.08%) is better than 76.19% of its industry peers.
• ENPH has a Operating Margin of 22.69%. This is in the better half of the industry: ENPH outperforms 73.33% 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.

Health Analysis for NASDAQ:ENPH

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:ENPH has earned a 7 out of 10:

• ENPH has an Altman-Z score of 4.65. This indicates that ENPH is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.65, ENPH is in the better half of the industry, outperforming 60.95% of the companies in the same industry.
• The Debt to FCF ratio of ENPH is 1.60, which is an excellent value as it means it would take ENPH, only 1.60 years of fcf income to pay off all of its debts.
• ENPH has a Debt to FCF ratio of 1.60. This is in the better half of the industry: ENPH outperforms 72.38% 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.
• ENPH has a Current Ratio of 3.36. This indicates that ENPH is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 3.13 indicates that ENPH has no problem at all paying its short term obligations.
• ENPH has a Quick ratio of 3.13. This is in the better half of the industry: ENPH outperforms 62.86% of its industry peers.

Growth Analysis for NASDAQ:ENPH

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:ENPH scores a 8 out of 10:

• The Earnings Per Share has grown by an impressive 39.84% 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.
• ENPH shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.37%.
• 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 15.43% on average per year.
• Based on estimates for the next years, ENPH will show a quite strong growth in Revenue. The Revenue will grow by 18.10% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.