Enphase Energy, Inc.
Enphase Energy, Inc. Fundamental Analysis
Enphase Energy, Inc. (ENPH) shows moderate financial fundamentals with a PE ratio of 33.32, profit margin of 8.72%, and ROE of 12.01%. The company generates $1.4B in annual revenue with strong year-over-year growth of 10.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
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
ExcellentENPH delivers strong and consistent growth momentum.
Financial Health Score
ExcellentENPH maintains a strong and stable balance sheet.
Profitability Score
WeakENPH struggles to sustain strong margins.
Key Financial Metrics
Is ENPH Expensive or Cheap?
P/E Ratio
ENPH trades at 33.32 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ENPH's PEG of -4.62 indicates potential undervaluation.
Price to Book
The market values Enphase Energy, Inc. at 3.69 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.17 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 $8.72 as profit after all expenses.
Operating Margin
Core operations generate 6.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.01 in profit for every $100 of shareholder equity.
ROA
Enphase Energy, Inc. generates $4.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Enphase Energy, Inc. produces operating cash flow of $191.65M, showing steady but balanced cash generation.
Free Cash Flow
Enphase Energy, Inc. generates strong free cash flow of $145.56M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.10 in free cash annually.
FCF Yield
ENPH converts 3.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ENPH Stacks Against Its Sector Peers
| Metric | ENPH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.32 | 21.98 | Worse (Expensive) |
| ROE | 12.01% | 952.00% | Weak |
| Net Margin | 8.72% | -61970.00% (disorted) | Weak |
| Debt/Equity | 0.00 | -0.47 (disorted) | Distorted |
| Current Ratio | 3.80 | 5.16 | Strong Liquidity |
| ROA | 4.48% | -10983371.00% (disorted) | Weak |
ENPH outperforms its industry in 1 out of 6 key metrics, 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
82.08%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
22.98%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-39.58%
Industry Style: Cyclical, Value, Commodity
Declining