ENPHASE ENERGY INC (E0P.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:E0P - US29355A1079 - Common Stock
34.235 EUR
+0.47 (+1.39%)
We assign a fundamental rating of 4 out of 10 to E0P. E0P was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. There are concerns on the financial health of E0P while its profitability can be described as average. E0P has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year E0P was profitable.
- E0P had a positive operating cash flow in the past year.
- Each year in the past 5 years E0P has been profitable.
- E0P had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- E0P has a Return On Assets of 5.89%. This is comparable to the rest of the industry: E0P outperforms 45.59% of its industry peers.
- E0P has a better Return On Equity (19.66%) than 60.29% of its industry peers.
- E0P has a Return On Invested Capital of 8.61%. This is comparable to the rest of the industry: E0P outperforms 48.53% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for E0P is below the industry average of 14.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 19.66% | ||
| ROIC | 8.61% |
ROA(3y)9.67%
ROA(5y)9.44%
ROE(3y)35.03%
ROE(5y)33.31%
ROIC(3y)10.89%
ROIC(5y)13.62%
1.3 Margins
- E0P has a Profit Margin of 12.93%. This is comparable to the rest of the industry: E0P outperforms 51.47% of its industry peers.
- E0P's Profit Margin has declined in the last couple of years.
- E0P's Operating Margin of 14.31% is in line compared to the rest of the industry. E0P outperforms 42.65% of its industry peers.
- In the last couple of years the Operating Margin of E0P has declined.
- The Gross Margin of E0P (49.11%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of E0P has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.31% | ||
| PM (TTM) | 12.93% | ||
| GM | 49.11% |
OM growth 3Y-24.77%
OM growth 5Y-16.62%
PM growth 3Y-9.82%
PM growth 5Y-21.45%
GM growth 3Y5.64%
GM growth 5Y5.94%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so E0P is still creating some value.
- Compared to 1 year ago, E0P has less shares outstanding
- The number of shares outstanding for E0P has been increased compared to 5 years ago.
- E0P has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.37 indicates that E0P is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.37, E0P is doing worse than 73.53% of the companies in the same industry.
- The Debt to FCF ratio of E0P is 5.54, which is a neutral value as it means it would take E0P, 5.54 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.54, E0P is doing worse than 60.29% of the companies in the same industry.
- E0P has a Debt/Equity ratio of 0.57. This is a neutral value indicating E0P is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.57, E0P is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.88
WACC9.76%
2.3 Liquidity
- E0P has a Current Ratio of 2.04. This indicates that E0P is financially healthy and has no problem in meeting its short term obligations.
- E0P has a Current ratio of 2.04. This is in the lower half of the industry: E0P underperforms 64.71% of its industry peers.
- E0P has a Quick Ratio of 1.88. This is a normal value and indicates that E0P is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.88, E0P is in the better half of the industry, outperforming 66.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
- E0P shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.94%, which is quite impressive.
- Measured over the past years, E0P shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.06% on average per year.
- Looking at the last year, E0P shows a very strong growth in Revenue. The Revenue has grown by 20.97%.
- The Revenue has been growing by 16.34% on average over the past years. This is quite good.
EPS 1Y (TTM)62.94%
EPS 3Y-0.69%
EPS 5Y20.06%
EPS Q2Q%38.46%
Revenue 1Y (TTM)20.97%
Revenue growth 3Y-1.26%
Revenue growth 5Y16.34%
Sales Q2Q%7.76%
3.2 Future
- E0P is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.78% yearly.
- Based on estimates for the next years, E0P will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
EPS Next Y18.22%
EPS Next 2Y-6.7%
EPS Next 3Y4.54%
EPS Next 5Y7.78%
Revenue Next Year10.41%
Revenue Next 2Y-5.23%
Revenue Next 3Y-0.17%
Revenue Next 5Y2.65%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.54 indicates a correct valuation of E0P.
- E0P's Price/Earnings ratio is rather cheap when compared to the industry. E0P is cheaper than 97.06% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. E0P is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 19.48, E0P is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, E0P is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, E0P is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 19.48 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, E0P is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, E0P is valued cheaper than 86.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.21 | ||
| EV/EBITDA | 13.15 |
4.3 Compensation for Growth
- E0P's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.69
PEG (5Y)0.63
EPS Next 2Y-6.7%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
- E0P does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ENPHASE ENERGY INC / E0P.DE FAQ
Can you provide the ChartMill fundamental rating for ENPHASE ENERGY INC?
ChartMill assigns a fundamental rating of 4 / 10 to E0P.DE.
What is the valuation status of ENPHASE ENERGY INC (E0P.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to ENPHASE ENERGY INC (E0P.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for ENPHASE ENERGY INC?
ENPHASE ENERGY INC (E0P.DE) has a profitability rating of 4 / 10.
What is the valuation of ENPHASE ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ENPHASE ENERGY INC (E0P.DE) is 12.54 and the Price/Book (PB) ratio is 5.29.
What is the expected EPS growth for ENPHASE ENERGY INC (E0P.DE) stock?
The Earnings per Share (EPS) of ENPHASE ENERGY INC (E0P.DE) is expected to grow by 18.22% in the next year.