NASDAQ:ENPH—A High-Growth Stock Gearing Up for Its Next Upward Move.

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 Assessment of 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 8 for growth:

• 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 34.38%.
• Measured over the past years, ENPH shows a very strong growth in Revenue. The Revenue has been growing by 52.11% on average per year.
• The Earnings Per Share is expected to grow by 9.07% on average over the next years. This is quite good.
• ENPH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.43% yearly.

Health Examination for NASDAQ:ENPH

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ENPH, the assigned 6 reflects its health status:

• ENPH has an Altman-Z score of 5.43. This indicates that ENPH is financially healthy and has little risk of bankruptcy at the moment.
• ENPH has a debt to FCF ratio of 1.60. This is a very positive value and a sign of high solvency as it would only need 1.60 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.60, ENPH is in the better half of the industry, outperforming 67.62% 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.
• 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.
• ENPH has a Quick Ratio of 3.13. This indicates that ENPH is financially healthy and has no problem in meeting its short term obligations.
• With a decent Quick ratio value of 3.13, ENPH is doing good in the industry, outperforming 63.81% of the companies in the same industry.

Profitability Insights: NASDAQ:ENPH

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:ENPH, the assigned 8 is noteworthy for profitability:

• The Return On Assets of ENPH (16.09%) is better than 81.90% of its industry peers.
• ENPH has a better Return On Equity (56.36%) than 95.24% of its industry peers.
• The Return On Invested Capital of ENPH (19.47%) is better than 84.76% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ENPH is significantly above the industry average of 12.00%.
• 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 75.24% of its industry peers.
• ENPH has a better Operating Margin (22.70%) than 75.24% 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.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:ENPH exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

ENPH has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 111.03. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 103.59, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ENPH in the last couple of days, which is a good sign.

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

For an up to date full technical analysis you can check the technical 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.