NasdaqGM:ENPH

Stock Analysis Report

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Market Cap

US$24.7b

Last Updated

2021/08/05 23:05 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Exceptional 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ENPH's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

ENPH

5.1%

US Semiconductor

0.02%

US Market


1 Year Return

157.0%

ENPH

53.2%

US Semiconductor

33.2%

US Market

Return vs Industry: ENPH exceeded the US Semiconductor industry which returned 53.2% over the past year.

Return vs Market: ENPH exceeded the US Market which returned 33.2% over the past year.


Shareholder returns

ENPHIndustryMarket
7 Day0.8%5.1%0.02%
30 Day-2.8%2.4%-0.1%
90 Day49.2%14.7%4.1%
1 Year157.0%157.0%55.2%53.2%35.3%33.2%
3 Year3,129.8%3,129.8%131.4%120.2%61.4%51.3%
5 Year10,206.2%10,206.2%312.7%274.5%122.2%97.7%

Long-Term 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?

9.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENPH ($183.45) is trading below our estimate of fair value ($202.92)

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 (129.9x) compared to the US Semiconductor industry average (33.4x).

PE vs Market: ENPH is poor value based on its PE Ratio (129.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ENPH is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: ENPH is overvalued based on its PB Ratio (42.2x) compared to the US Semiconductor industry average (4.8x).


Future Growth

How is Enphase Energy forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENPH's forecast earnings growth (37% per year) is above the savings rate (2%).

Earnings vs Market: ENPH's earnings (37% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: ENPH's revenue (22% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: ENPH's revenue (22% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENPH's Return on Equity is forecast to be high in 3 years time (34.7%)


Past Performance

How has Enphase Energy performed over the past 5 years?

71.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENPH has a large one-off loss of $61.0M impacting its June 30 2021 financial results.

Growing Profit Margin: ENPH's current net profit margins (17.3%) are lower than last year (23.5%).


Past Earnings Growth Analysis

Earnings Trend: ENPH has become profitable over the past 5 years, growing earnings by 71.1% per year.

Accelerating Growth: ENPH's earnings growth over the past year (8.3%) is below its 5-year average (71.1% per year).

Earnings vs Industry: ENPH earnings growth over the past year (8.3%) underperformed the Semiconductor industry 51.1%.


Return on Equity

High ROE: Whilst ENPH's Return on Equity (31.38%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Enphase Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ENPH's short term assets ($1.7B) exceed its short term liabilities ($356.6M).

Long Term Liabilities: ENPH's short term assets ($1.7B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: ENPH's debt to equity ratio (173.5%) is considered high.

Reducing Debt: ENPH's debt to equity ratio has increased from 102.2% to 173.5% over the past 5 years.

Debt Coverage: ENPH's debt is well covered by operating cash flow (28.9%).

Interest Coverage: ENPH's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Badri Kothandaraman (48 yo)

3.92yrs

Tenure

US$5,238,605

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Badri's total compensation ($USD5.24M) is below average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Badri's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ENPH's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: ENPH's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ENPH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.8%.


Top Shareholders

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$24.696b
  • Shares outstanding: 134.62m
  • Website: https://www.enphase.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 23:05
End of Day Share Price2021/08/05 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.