Enphase Energy, Inc.
Enphase Energy, Inc. Fundamental Analysis
Enphase Energy, Inc. (ENPH) shows weak financial fundamentals with a PE ratio of 34.82, profit margin of 11.69%, and ROE of 18.25%. The company generates $1.5B in annual revenue with weak year-over-year growth of -41.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 5.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ENPH's fundamental strength across five key dimensions:
Efficiency Score
WeakENPH struggles to generate sufficient returns from assets.
Valuation Score
ModerateENPH shows balanced valuation metrics.
Growth Score
WeakENPH faces weak or negative growth trends.
Financial Health Score
ModerateENPH shows balanced financial health with some risks.
Profitability Score
ModerateENPH maintains healthy but balanced margins.
Key Financial Metrics
Is ENPH Expensive or Cheap?
P/E Ratio
ENPH trades at 34.82 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ENPH's PEG of -3.22 indicates potential undervaluation.
Price to Book
The market values Enphase Energy, Inc. at 5.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.26 times EBITDA. This signals the market has high growth expectations.
How Well Does ENPH Make Money?
Net Profit Margin
For every $100 in sales, Enphase Energy, Inc. keeps $11.69 as profit after all expenses.
Operating Margin
Core operations generate 10.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.25 in profit for every $100 of shareholder equity.
ROA
Enphase Energy, Inc. generates $4.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Enphase Energy, Inc. generates limited operating cash flow of $136.43M, signaling weaker underlying cash strength.
Free Cash Flow
Enphase Energy, Inc. produces free cash flow of $95.82M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.73 in free cash annually.
FCF Yield
ENPH converts 1.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ENPH Stacks Against Its Sector Peers
| Metric | ENPH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.82 | 20.19 | Worse (Expensive) |
| ROE | 18.25% | 1019.00% | Weak |
| Net Margin | 11.69% | -44017.00% (disorted) | Strong |
| Debt/Equity | 1.11 | -0.65 (disorted) | Distorted |
| Current Ratio | 2.07 | 4.60 | Strong Liquidity |
| ROA | 4.90% | -11655350.00% (disorted) | Weak |
ENPH outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Enphase Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
84.00%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-44.99%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
218.95%
Industry Style: Cyclical, Value, Commodity
High Growth