ENPHASE ENERGY INC (E0P.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:E0P - US29355A1079 - Common Stock
34.235 EUR
+0.47 (+1.39%)
E0P gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 68 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.
- E0P had positive earnings in each of the past 5 years.
- Each year in the past 5 years E0P had a positive operating cash flow.
1.2 Ratios
- E0P has a Return On Assets (5.89%) which is in line with its industry peers.
- E0P's Return On Equity of 19.66% is fine compared to the rest of the industry. E0P outperforms 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.
- E0P had an Average Return On Invested Capital over the past 3 years of 10.89%. This is below the industry average of 14.62%.
| 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's Profit Margin of 12.93% is in line compared 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.
- The Operating Margin of E0P (14.31%) is comparable to the rest of the industry.
- E0P's Operating Margin has declined in the last couple of years.
- E0P has a Gross Margin (49.11%) which is in line with its industry peers.
- 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.
- The number of shares outstanding for E0P has been reduced compared to 1 year ago.
- E0P has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for E0P is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.34 indicates that E0P is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.34, E0P is not doing good in the industry: 73.53% of the companies in the same industry are doing better.
- 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.
- With a Debt to FCF ratio value of 5.54, E0P is not doing good in the industry: 60.29% of the companies in the same industry are doing better.
- E0P has a Debt/Equity ratio of 0.57. This is a neutral value indicating E0P is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.57, E0P is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.89
WACC9.66%
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 worse Current ratio (2.04) than 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.
- The Earnings Per Share has been growing by 20.06% on average over the past years. This is a very strong growth
- The Revenue has grown by 20.97% in the past year. This is a very strong growth!
- 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
- Based on estimates for the next years, E0P will show a small growth in Earnings Per Share. The EPS will grow by 7.78% on average per year.
- 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-5.31%
Revenue Next 3Y-0.2%
Revenue Next 5Y2.65%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.49, E0P is valued correctly.
- 97.06% of the companies in the same industry are more expensive than E0P, based on the Price/Earnings ratio.
- E0P is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 19.43, which indicates a rather expensive current valuation of E0P.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of E0P indicates a rather cheap valuation: E0P is cheaper than 80.88% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, E0P is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 19.43 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of E0P indicates a somewhat cheap valuation: E0P is cheaper than 75.00% of the companies listed in the same industry.
- E0P's Price/Free Cash Flow ratio is rather cheap when compared to the industry. E0P is cheaper than 89.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.13 | ||
| EV/EBITDA | 12.85 |
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)0.62
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 12.49 and the Price/Book (PB) ratio is 5.27.
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.