ENPHASE ENERGY INC (ENPH) Stock Fundamental Analysis
NASDAQ:ENPH - Nasdaq - US29355A1079 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ENPH. ENPH was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While ENPH has a great profitability rating, there are some minor concerns on its financial health. ENPH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ENPH had positive earnings in the past year.
In the past year ENPH had a positive cash flow from operations.
Each year in the past 5 years ENPH has been profitable.
ENPH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.78%, ENPH is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
ENPH has a better Return On Equity (18.32%) than 82.73% of its industry peers.
ENPH's Return On Invested Capital of 6.71% is fine compared to the rest of the industry. ENPH outperforms 70.91% of its industry peers.
ENPH had an Average Return On Invested Capital over the past 3 years of 10.89%. This is in line with the industry average of 10.58%.
The 3 year average ROIC (10.89%) for ENPH is well above the current ROIC(6.71%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 18.32% | ||
| ROIC | 6.71% |
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
Looking at the Profit Margin, with a value of 10.43%, ENPH is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
In the last couple of years the Profit Margin of ENPH has declined.
With a decent Operating Margin value of 10.73%, ENPH is doing good in the industry, outperforming 64.55% of the companies in the same industry.
In the last couple of years the Operating Margin of ENPH has declined.
ENPH has a Gross Margin (47.91%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ENPH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.73% | ||
| PM (TTM) | 10.43% | ||
| GM | 47.91% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ENPH is creating some value.
Compared to 1 year ago, ENPH has less shares outstanding
Compared to 5 years ago, ENPH has more shares outstanding
Compared to 1 year ago, ENPH has a worse debt to assets ratio.
2.2 Solvency
ENPH has an Altman-Z score of 2.32. This is not the best score and indicates that ENPH is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.32, ENPH is doing worse than 63.64% of the companies in the same industry.
The Debt to FCF ratio of ENPH is 2.55, which is a good value as it means it would take ENPH, 2.55 years of fcf income to pay off all of its debts.
ENPH has a better Debt to FCF ratio (2.55) than 63.64% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that ENPH is somewhat dependend on debt financing.
ENPH has a worse Debt to Equity ratio (0.70) than 79.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.64
WACC10.56%
2.3 Liquidity
A Current Ratio of 1.90 indicates that ENPH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.90, ENPH is not doing good in the industry: 79.09% of the companies in the same industry are doing better.
ENPH has a Quick Ratio of 1.77. This is a normal value and indicates that ENPH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.77, ENPH is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The earnings per share for ENPH have decreased strongly by -20.12% in the last year.
ENPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.06% yearly.
The Revenue for ENPH has decreased by -22.15% in the past year. This is quite bad
Measured over the past years, ENPH shows a quite strong growth in Revenue. The Revenue has been growing by 16.34% on average per year.
EPS 1Y (TTM)-20.12%
EPS 3Y-0.69%
EPS 5Y20.06%
EPS Q2Q%94.29%
Revenue 1Y (TTM)-22.15%
Revenue growth 3Y-1.26%
Revenue growth 5Y16.34%
Sales Q2Q%35.22%
3.2 Future
Based on estimates for the next years, ENPH will show a small growth in Earnings Per Share. The EPS will grow by 6.64% on average per year.
ENPH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.15% yearly.
EPS Next Y5.58%
EPS Next 2Y9.79%
EPS Next 3Y10.47%
EPS Next 5Y6.64%
Revenue Next Year10.64%
Revenue Next 2Y9.15%
Revenue Next 3Y7.86%
Revenue Next 5Y3.15%
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
The Price/Earnings ratio is 14.89, which indicates a correct valuation of ENPH.
Compared to the rest of the industry, the Price/Earnings ratio of ENPH indicates a rather cheap valuation: ENPH is cheaper than 87.27% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.51. ENPH is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.07, ENPH is valued correctly.
ENPH's Price/Forward Earnings ratio is rather cheap when compared to the industry. ENPH is cheaper than 87.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ENPH to the average of the S&P500 Index (35.58), we can say ENPH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 14.07 |
4.2 Price Multiples
74.55% of the companies in the same industry are more expensive than ENPH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENPH indicates a rather cheap valuation: ENPH is cheaper than 97.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.17 | ||
| EV/EBITDA | 17.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ENPH may justify a higher PE ratio.
PEG (NY)2.67
PEG (5Y)0.74
EPS Next 2Y9.79%
EPS Next 3Y10.47%
5. Dividend
5.1 Amount
ENPH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ENPH (7/15/2025, 3:53:09 PM)
40.2
-1.78 (-4.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.38%
Inst Owner Change-0.48%
Ins Owners3.12%
Ins Owner Change0.62%
Market Cap5.27B
Analysts63.72
Price Target53.21 (32.36%)
Short Float %20.85%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.14%
Min EPS beat(2)-5.07%
Max EPS beat(2)27.34%
EPS beat(4)1
Avg EPS beat(4)-1.54%
Min EPS beat(4)-16.87%
Max EPS beat(4)27.34%
EPS beat(8)2
Avg EPS beat(8)-0.93%
EPS beat(12)6
Avg EPS beat(12)5.08%
EPS beat(16)10
Avg EPS beat(16)9.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-3.27%
Max Revenue beat(2)-0.64%
Revenue beat(4)0
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-0.64%
Revenue beat(8)0
Avg Revenue beat(8)-4.75%
Revenue beat(12)3
Avg Revenue beat(12)-3%
Revenue beat(16)6
Avg Revenue beat(16)-2.13%
PT rev (1m)-4.1%
PT rev (3m)-32.79%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-21.14%
EPS NY rev (1m)1.49%
EPS NY rev (3m)-24.93%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-4.88%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)-5.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 14.07 | ||
| P/S | 3.71 | ||
| P/FCF | 11.17 | ||
| P/OCF | 10.28 | ||
| P/B | 6.51 | ||
| P/tB | 9.4 | ||
| EV/EBITDA | 17.64 |
EPS(TTM)2.7
EY6.72%
EPS(NY)2.86
Fwd EY7.11%
FCF(TTM)3.6
FCFY8.95%
OCF(TTM)3.91
OCFY9.72%
SpS10.85
BVpS6.18
TBVpS4.28
PEG (NY)2.67
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 18.32% | ||
| ROCE | 7.84% | ||
| ROIC | 6.71% | ||
| ROICexc | 27.2% | ||
| ROICexgc | 56.72% | ||
| OM | 10.73% | ||
| PM (TTM) | 10.43% | ||
| GM | 47.91% | ||
| FCFM | 33.17% |
ROA(3y)9.67%
ROA(5y)9.44%
ROE(3y)35.03%
ROE(5y)33.31%
ROIC(3y)10.89%
ROIC(5y)13.62%
ROICexc(3y)29.55%
ROICexc(5y)N/A
ROICexgc(3y)43.52%
ROICexgc(5y)N/A
ROCE(3y)12.74%
ROCE(5y)15.93%
ROICexcg growth 3Y-41.75%
ROICexcg growth 5Y-24.25%
ROICexc growth 3Y-35.85%
ROICexc growth 5Y-25.26%
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%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.55 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 50.32% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 219.3% | ||
| Profit Quality | 317.92% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 2.32 |
F-Score6
WACC10.56%
ROIC/WACC0.64
Cap/Depr(3y)89.33%
Cap/Depr(5y)108.77%
Cap/Sales(3y)3.11%
Cap/Sales(5y)3.16%
Profit Quality(3y)259%
Profit Quality(5y)225.8%
High Growth Momentum
Growth
EPS 1Y (TTM)-20.12%
EPS 3Y-0.69%
EPS 5Y20.06%
EPS Q2Q%94.29%
EPS Next Y5.58%
EPS Next 2Y9.79%
EPS Next 3Y10.47%
EPS Next 5Y6.64%
Revenue 1Y (TTM)-22.15%
Revenue growth 3Y-1.26%
Revenue growth 5Y16.34%
Sales Q2Q%35.22%
Revenue Next Year10.64%
Revenue Next 2Y9.15%
Revenue Next 3Y7.86%
Revenue Next 5Y3.15%
EBIT growth 1Y-42.56%
EBIT growth 3Y-25.72%
EBIT growth 5Y-3%
EBIT Next Year38.71%
EBIT Next 3Y26.74%
EBIT Next 5Y14.38%
FCF growth 1Y-43.27%
FCF growth 3Y17.03%
FCF growth 5Y31.03%
OCF growth 1Y-42.28%
OCF growth 3Y13.43%
OCF growth 5Y29.86%