NasdaqGM:ENPH

Stock Analysis Report

Executive Summary

Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally.

Rewards

Trading at 22% below its fair value

Earnings are forecast to grow 24.58% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Enphase Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENPH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

ENPH

3.4%

US Semiconductor

0.6%

US Market


1 Year Return

374.8%

ENPH

52.7%

US Semiconductor

24.6%

US Market

Return vs Industry: ENPH exceeded the US Semiconductor industry which returned 48.5% over the past year.

Return vs Market: ENPH exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

ENPHIndustryMarket
7 Day2.6%3.4%0.6%
30 Day17.0%4.3%3.0%
90 Day28.8%19.2%10.6%
1 Year374.8%374.8%55.8%52.7%27.3%24.6%
3 Year1828.0%1828.0%92.4%81.7%50.5%40.8%
5 Year143.6%143.6%163.0%137.3%78.9%59.1%

Price Volatility Vs. Market

How volatile is Enphase Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Enphase Energy undervalued compared to its fair value and its price relative to the market?

18.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENPH ($30.2) is trading below our estimate of fair value ($38.74)

Significantly Below Fair Value: ENPH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ENPH is poor value based on its PE Ratio (75.3x) compared to the Semiconductor industry average (34.5x).

PE vs Market: ENPH is poor value based on its PE Ratio (75.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ENPH is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: ENPH is overvalued based on its PB Ratio (24.3x) compared to the US Semiconductor industry average (3.3x).


Next Steps

Future Growth

How is Enphase Energy forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENPH's forecast earnings growth (24.6% per year) is above the savings rate (1.7%).

Earnings vs Market: ENPH's earnings (24.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ENPH's revenue (17.3% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: ENPH's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENPH's Return on Equity is forecast to be very high in 3 years time (44.4%).


Next Steps

Past Performance

How has Enphase Energy performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENPH has a high level of non-cash earnings.

Growing Profit Margin: ENPH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ENPH has become profitable over the past 5 years, growing earnings by 12.7% per year.

Accelerating Growth: ENPH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ENPH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (-15.8%).


Return on Equity

High ROE: ENPH's Return on Equity (29.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Enphase Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ENPH's short term assets ($391.5M) exceed its short term liabilities ($146.8M).

Long Term Liabilities: ENPH's short term assets ($391.5M) exceed its long term liabilities ($224.6M).


Debt to Equity History and Analysis

Debt Level: ENPH's debt to equity ratio (68.3%) is considered high.

Reducing Debt: ENPH's debt to equity ratio has increased from 13.6% to 68.3% over the past 5 years.

Debt Coverage: ENPH's debt is well covered by operating cash flow (37.2%).

Interest Coverage: ENPH's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

Inventory Level: ENPH has a low level of unsold assets or inventory.

Debt Coverage by Assets: ENPH's debt is covered by short term assets (assets are 3.8x debt).


Next Steps

Dividend

What is Enphase Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ENPH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ENPH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ENPH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ENPH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ENPH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Enphase Energy's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Badri Kothandaraman (46yo)

2.4yrs

Tenure

US$2,721,724

Compensation

Mr. Badrinarayanan Kothandaraman, also known as Badri, is the President, Chief Executive Officer of Enphase Energy, Inc. since September 3, 2017. He serves as Director at Enphase Energy, Inc since May 2018 ...


CEO Compensation Analysis

Compensation vs Market: Badri's total compensation ($USD2.72M) is below average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Badri's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

Experienced Management: ENPH's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

53yo

Average Age

Experienced Board: ENPH's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: ENPH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$176,99421 Nov 19
Eric Branderiz
EntityIndividual
Role
Chief Financial Officer
CFO & VP
Shares10,000
Max PriceUS$17.70
BuyUS$176,91821 Nov 19
Badrinarayanan Kothandaraman
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$17.69
SellUS$1,861,80020 Aug 19
Richard Mora
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares60,000
Max PriceUS$31.03
SellUS$20,617,06731 Jul 19
TOTAL S.A.
EntityCompany
Shares1,000,000
Max PriceUS$21.38
SellUS$928,91517 May 19
David Ranhoff
EntityIndividual
Role
Senior Key Executive
VP & Chief Commercial Officer
Shares63,516
Max PriceUS$14.62
SellUS$19,30703 Apr 19
David Ranhoff
EntityIndividual
Role
Senior Key Executive
VP & Chief Commercial Officer
Shares2,110
Max PriceUS$9.15
SellUS$548,60405 Mar 19
David Ranhoff
EntityIndividual
Role
Senior Key Executive
VP & Chief Commercial Officer
Shares60,000
Max PriceUS$9.15
BuyUS$100,09805 Mar 19
Eric Branderiz
EntityIndividual
Role
Chief Financial Officer
CFO & VP
Shares11,415
Max PriceUS$8.77
BuyUS$87,39405 Mar 19
Badrinarayanan Kothandaraman
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$8.74

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.4%.


Management Team

  • Dave Ranhoff (63yo)

    VP & Chief Commercial Officer

    • Tenure: 2.1yrs
    • Compensation: US$577.30k
  • Eric Branderiz (54yo)

    CFO & VP

    • Tenure: 1.6yrs
    • Compensation: US$3.01m
  • Denis Quinlan

    VP & General Counsel

    • Martin Fornage (55yo)

      Co-Founder & CTO

      • Tenure: 13.8yrs
      • Compensation: US$1.05m
    • Raghu Belur (51yo)

      Co-Founder & Chief Products Officer

      • Tenure: 13.8yrs
      • Compensation: US$758.90k
    • Badri Kothandaraman (46yo)

      President

      • Tenure: 2.4yrs
      • Compensation: US$2.72m
    • Nathan Dunn

      Managing Director of APAC

      • Tenure: 5.8yrs
    • Mandy Yang (43yo)

      VP, CAO

      • Tenure: 1.3yrs
    • Jeff McNeil (57yo)

      VP & COO

      • Tenure: 0.8yrs
    • Christina Carrabino

      Investor Relations


      Board Members

      • Thurman Rodgers (71yo)

        Independent Director

        • Tenure: 3yrs
        • Compensation: US$119.00k
      • Steve Gomo (67yo)

        Lead Independent Director

        • Compensation: US$195.00k
      • Richard Mora (53yo)

        Independent Director

        • Tenure: 5.9yrs
        • Compensation: US$133.00k
      • Ben Kortlang (44yo)

        Independent Director

        • Tenure: 9.7yrs
        • Compensation: US$75.00k
      • Badri Kothandaraman (46yo)

        President

        • Tenure: 2.4yrs
        • Compensation: US$2.72m

      Company Information

      Enphase Energy, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Enphase Energy, Inc.
      • Ticker: ENPH
      • Exchange: NasdaqGM
      • Founded: 2006
      • Industry: Semiconductor Equipment
      • Sector: Semiconductors
      • Market Cap: US$3.870b
      • Shares outstanding: 122.39m
      • Website: https://www.enphase.com

      Number of Employees


      Location

      • Enphase Energy, Inc.
      • 47281 Bayside Parkway
      • Fremont
      • California
      • 94538
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      ENPHNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMar 2012
      E0PDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2012
      E0PBRSE (Berne Stock Exchange)YesCommon StockCHCHFMar 2012
      0QYELSE (London Stock Exchange)YesCommon StockGBUSDMar 2012

      Biography

      Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter that converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It sells its solutions primarily to distributors, as well as directly to large installers, original equipment manufacturers, strategic partners, and homeowners. Enphase Energy, Inc. was founded in 2006 and is headquartered in Fremont, California. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/23 00:39
      End of Day Share Price2020/01/22 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.