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ENPH

Enphase Energy NasdaqGM:ENPH Stock Report

Last Price

US$274.92

Market Cap

US$37.2b

7D

-13.1%

1Y

77.3%

Updated

26 Sep, 2022

Data

Company Financials +
ENPH fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ENPH Stock Overview

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.

Enphase Energy, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Enphase Energy
Historical stock prices
Current Share PriceUS$274.92
52 Week HighUS$324.84
52 Week LowUS$113.40
Beta1.49
1 Month Change-4.74%
3 Month Change44.20%
1 Year Change77.30%
3 Year Change1,136.71%
5 Year Change17,868.63%
Change since IPO3,645.50%

Recent News & Updates

Sep 25

Enphase Energy: Continuing Nearby Capital-Gains-Based Energy Environmental Advancement

Summary Enphase contributes technological progress to the growing environmental demands accompanying the transportation revolution. Home electrification is more in need ex-US but also being pushed here by evolving weather changes disturbing established utility services. Once again equities markets are the early alert for long-term substantial change in US lifestyles, likely to be followed rapidly in developed nations abroad, now more economically. Equities markets’ forecast horizon is at best only 3-5 months, but its repetition can support longer-term movements - what can be developing here. This is near-term price opportunity analysis only - long-term prospect comes only from a product of repeated reinvestment of near-term outcomes as suggested by history.

Sep 19

Gaslicht reports increased deployments of Enphase microinverters in Netherlands

Dutch energy platform Gaslicht.com has reported an increase in deployments of residential solar energy systems powered by Enphase Energy's (NASDAQ:ENPH) IQ7 family of microinverters The company has seen growing consumer interest in Enphase IQ Microinverters in the Netherlands amid rising energy costs. Over the past year, ~75% of Gaslicht.com's customers have chosen Enphase microinverters for their solar systems.

Aug 29

Enphase Energy to acquire GreenCom Networks

Enphase Energy (NASDAQ:ENPH) to acquire GreenCom Networks AG. Based in Munich, Germany, GreenCom Networks provides Internet of Things (IoT) software solutions for customers to connect and manage a wide range of distributed energy devices within the home. The acquisition will add a local engineering team to service the accelerating clean energy transition in Europe. Acquisition is subject to regulatory approvals and is expected to close in Q4 2022. “The technical capabilities of the development team at GreenCom Networks will help accelerate our home energy management solutions globally. We are excited to introduce the company’s solutions to our customers, beginning in Germany. We look forward to building upon the company’s current offering, and integrating it into the Enphase platform.” said Mehran Sedigh, VP, Storage Business Unit at Enphase Energy.

Aug 22

Enphase: Best Management, Integrated Products And Global Expansion

Europe is focused on home electrification (sector coupling) and Enphase is building integrated products to achieve this. Similar small business products are coming. Enphase has acquired several companies in the US to broaden its integrated services and also support a large installer network. Manufacture is in good shape with contract manufacturers in India, Mexico, China, and soon Romania. Enphase is a great story with an outstanding pipeline of products and integration in solar/battery/home power management/electric vehicle integration. Enphase (ENPH) is becoming one of the stars of the decarbonization story as everything gets electrified. With outstanding technology, it struggled in the early days to manage technology development and getting its products to market. However, with new management and a relentless customer focus, it has become a model company producing spectacular and profitable growth, new product innovations, plus recent global expansion beyond its US home market. Here I review recent developments at Enphase and consider what investors might make of a company whose share price is Tesla-like (TSLA). I think this comparison makes sense. Enphase Q2 2022 report was outstanding Enphase has developed a reputation for exceeding estimates and Q2 earnings were no exception. What is more remarkable is that Enphase CEO Badri Kothandaraman has already foreshadowed substantial outperformance on the next quarterly earnings. This kind of reporting gives confidence that the business is in great shape and that there is a lot of room for outperformance, even in very challenging times. Enphase ended Q2 with outperformance compared with its own targets on three key metrics : ~42% gross margin (goal 35%), 13% operating expenses (goal 15%) and 29% operating income (goal 20%). Revenue was a record $530.2 million and free cash flow $192 million for the quarter; the company ended Q2 with $1.25 billion cash. The uptake of the new, transforming IQ product (IQ8) was 37% of Q2 microinverter shipments. This product is proving to be company defining as the IQ8 product is largely responsible for improved non-GAAP gross margin. Some have criticised delays in release of the IQ8 product but getting right means that the improved gross margin from this product reflects Enphase's focus on quality and profitability in its new products. This is an important part of why the company is improving its status in the industry. The IQ8 has 3 key new features : i) sunlight backup i.e. power continues from solar PV when the grid is down; ii) there is no limit on solar to storage ratio i.e. you can have a lot of solar and small (or no) storage; iii) sunlight jumpstart i.e. if you drain the battery overnight, the IQ8 can reboot the battery system from solar PV. These features allow Enphase to have value-based pricing (more profitable) and IQ8 is increasing the gross margins. The amazing claim about IQ8 is that Enphase expects 90% of its microinverter shipments will be IQ8 in Q2 2023! The guidance outlook for Q3 was very bullish, mid-point $610 million revenue, a ~15% increase on Q2, even as the company struggles to satisfy demand for its products. Manufacture Amazingly for these times, Enphase supply chain situation is stable because of careful supplier management and sourcing alternate suppliers. Microinverter manufacturing capacity is 5 million across all facilities. An additional 1 million inverter capacity will be on line in Q1 2023 when manufacture in Flex's (FLEX) factory in Timisoara, Romania starts. And it was stated that should Romania's output need to double, this just requires an additional full automated line. This is fast to achieve and in the Q&A it was clear that this is already being planned to be implemented once the initial production commences in Q1 2023. Note that Flex Romania is largely for the European market. Enphase has Indian manufacture in Salcomp's Chennai facility (5 million inverters since 2020), as well as manufacture in Flex's Guadalajara Mexico and Fuyong China facilities. Manufacturing costs are being reduced by fully automating manufacture lines. There are significant backorders on some items, such as the IQ batteries which have a 14-16 week backlog due to global logistics supplier issues. A new (third) cell pack supplier will be added next year. Enphase is going global at a good time Enphase is primarily a US play currently, with 80% of its revenue being US-based. While the US market is growing strongly (66% year-on-year) from both large and small solar and storage installers, Europe is growing even faster (89% year on year). There is strong demand for microinverters in Netherlands, France, Germany, Belgium, Spain and Portugal even as introduction of IQ8 microinverters is just starting in Europe. There is strong initial demand for IQ batteries in Germany with other countries planned for battery release in 2022. In Q3 Enphase expects to grow European revenue by more than 40% compared with Q2. A number of issues are driving European market establishment. These arise from an interest in self consumption not only because power prices are rising, but also because of increased interest in home electrification (to address natural gas shortages) and growth of electric vehicles. In Germany "Sector coupling" is the buzzword which brings together heating & cooling, transport and mobility along with renewables power production. Together these issues allow home electrification. Enphase is focused on being the company that enables sector coupling. In Latin America revenue grew 61% year on year. Enphase's Australian, Brazilian and Indian markets are on major growth paths as Enphase products get established in these countries. Integration of household (and commercial) energy systems For Enphase, sector coupling means a suite of products starting with microinverters to couple solar PV with the Enphase battery system, followed by integrating the batteries seamlessly with third party BEV chargers and heat pumps. This provides a single interface for homeowners to monitor and manage their energy production and consumption. Enphase is field testing the IQ8B for small business and it has acquired Californian company ClipperCreek EV charging solutions for residential and commercial customers. Given that Enphase is cashed up, expect more acquisitions of companies whose products can be integrated with Enphase solutions. Enphase will soon manufacture its own branded EV charging solutions (i.e. move and scale up ClipperCreek products to its Flex manufacturer in Mexico). A smart integrated charger will be implemented in the first half of 2023, with integration to Enphase home energy management. A significant part of Enphase's business is focused on helping installers become more efficient and it acquired 4 companies that focus on installer efficiency issues in the past 18 months. For example Enphase acquired SolarLeadFactory in March 2022. This company provides cost effective lead services to installers, thus addressing a significant issue for the US market. Enphase has also acquired three software companies that relate to improving business for its installer network. Enphase has 1,200 installers in its global EIN (Enphase Installer Network), The focus of this activity is to focus on quality and exceptional customer experience. The experience learned in the US is being translated successfully to European operations.

Shareholder Returns

ENPHUS SemiconductorUS Market
7D-13.1%-8.0%-6.9%
1Y77.3%-30.7%-23.7%

Return vs Industry: ENPH exceeded the US Semiconductor industry which returned -29.7% over the past year.

Return vs Market: ENPH exceeded the US Market which returned -23% over the past year.

Price Volatility

Is ENPH's price volatile compared to industry and market?
ENPH volatility
ENPH Average Weekly Movement9.3%
Semiconductor Industry Average Movement8.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: ENPH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ENPH's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20062,260Badri Kothandaramanhttps://www.enphase.com

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 company offers semiconductor-based microinverter, which 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 also offers AC battery storage systems; Envoy communications gateway; and Enlighten cloud-based monitoring service, as well as other accessories.

Enphase Energy, Inc. Fundamentals Summary

How do Enphase Energy's earnings and revenue compare to its market cap?
ENPH fundamental statistics
Market CapUS$37.24b
Earnings (TTM)US$203.20m
Revenue (TTM)US$1.74b

183.3x

P/E Ratio

21.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ENPH income statement (TTM)
RevenueUS$1.74b
Cost of RevenueUS$1.04b
Gross ProfitUS$699.65m
Other ExpensesUS$496.45m
EarningsUS$203.20m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.50
Gross Margin40.31%
Net Profit Margin11.71%
Debt/Equity Ratio285.2%

How did ENPH perform over the long term?

See historical performance and comparison