ENPHASE ENERGY INC (ENPH)
US29355A1079 - Common Stock
We assign a fundamental rating of 6 out of 10 to ENPH. ENPH was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. ENPH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ENPH has a decent growth rate and is not valued too expensively. These ratings would make ENPH suitable for quality investing!
1. Profitability
1.1 Basic Checks
ENPH had positive earnings in the past year.
In the past year ENPH had a positive cash flow from operations.
Each year in the past 5 years ENPH has been profitable.
Each year in the past 5 years ENPH had a positive operating cash flow.
1.2 Ratios
ENPH has a Return On Assets of 8.54%. This is in the better half of the industry: ENPH outperforms 71.30% of its industry peers.
ENPH has a better Return On Equity (29.91%) than 90.74% of its industry peers.
With a decent Return On Invested Capital value of 8.61%, ENPH is doing good in the industry, outperforming 74.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ENPH is above the industry average of 10.85%.
The last Return On Invested Capital (8.61%) for ENPH is well below the 3 year average (13.93%), which needs to be investigated, but indicates that ENPH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.54% | ||
| ROE | 29.91% | ||
| ROIC | 8.61% |
ROA(3y)10.95%
ROA(5y)13.32%
ROE(3y)42.19%
ROE(5y)42.69%
ROIC(3y)13.93%
ROIC(5y)16.76%
1.3 Margins
ENPH has a Profit Margin of 15.10%. This is in the better half of the industry: ENPH outperforms 70.37% of its industry peers.
In the last couple of years the Profit Margin of ENPH has grown nicely.
The Operating Margin of ENPH (14.54%) is better than 68.52% of its industry peers.
In the last couple of years the Operating Margin of ENPH has grown nicely.
With a Gross Margin value of 46.36%, ENPH perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
In the last couple of years the Gross Margin of ENPH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.54% | ||
| PM (TTM) | 15.1% | ||
| GM | 46.36% |
OM growth 3Y-5.77%
OM growth 5Y62.05%
PM growth 3Y3.46%
PM growth 5YN/A
GM growth 3Y1.12%
GM growth 5Y9.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ENPH is creating some value.
The number of shares outstanding for ENPH has been reduced compared to 1 year ago.
The number of shares outstanding for ENPH has been increased compared to 5 years ago.
The debt/assets ratio for ENPH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.88 indicates that ENPH is not in any danger for bankruptcy at the moment.
ENPH has a Altman-Z score of 5.88. This is in the better half of the industry: ENPH outperforms 63.89% of its industry peers.
The Debt to FCF ratio of ENPH is 3.20, which is a good value as it means it would take ENPH, 3.20 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.20, ENPH is doing good in the industry, outperforming 60.19% of the companies in the same industry.
ENPH has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
ENPH has a Debt to Equity ratio of 1.30. This is amonst the worse of the industry: ENPH underperforms 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 5.88 |
ROIC/WACC0.72
WACC11.9%
2.3 Liquidity
ENPH has a Current Ratio of 4.16. This indicates that ENPH is financially healthy and has no problem in meeting its short term obligations.
ENPH has a better Current ratio (4.16) than 64.81% of its industry peers.
ENPH has a Quick Ratio of 3.78. This indicates that ENPH is financially healthy and has no problem in meeting its short term obligations.
ENPH's Quick ratio of 3.78 is fine compared to the rest of the industry. ENPH outperforms 71.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.16 | ||
| Quick Ratio | 3.78 |
3. Growth
3.1 Past
The earnings per share for ENPH have decreased strongly by -35.00% in the last year.
ENPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 117.69% yearly.
Looking at the last year, ENPH shows a very negative growth in Revenue. The Revenue has decreased by -30.11% in the last year.
Measured over the past years, ENPH shows a very strong growth in Revenue. The Revenue has been growing by 48.60% on average per year.
EPS 1Y (TTM)-35%
EPS 3Y47.9%
EPS 5Y117.69%
EPS Q2Q%-74.45%
Revenue 1Y (TTM)-30.11%
Revenue growth 3Y43.55%
Revenue growth 5Y48.6%
Sales Q2Q%-63.73%
3.2 Future
Based on estimates for the next years, ENPH will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.68% on average per year.
Based on estimates for the next years, ENPH will show a quite strong growth in Revenue. The Revenue will grow by 9.97% on average per year.
EPS Next Y-34.32%
EPS Next 2Y7.22%
EPS Next 3Y12.7%
EPS Next 5Y16.68%
Revenue Next Year-36.63%
Revenue Next 2Y-4.29%
Revenue Next 3Y3.6%
Revenue Next 5Y9.97%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.44, ENPH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ENPH is valued a bit cheaper than the industry average as 62.04% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.42, ENPH is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 23.68, the valuation of ENPH can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ENPH is valued a bit cheaper than 62.96% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.02, ENPH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 23.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ENPH is on the same level as its industry peers.
ENPH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ENPH is cheaper than 73.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.29 | ||
| EV/EBITDA | 44.3 |
4.3 Compensation for Growth
ENPH has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ENPH's earnings are expected to grow with 12.70% in the coming years.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y7.22%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
No dividends for ENPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ENPHASE ENERGY INC
NASDAQ:ENPH (6/17/2024, 10:05:09 AM)
119.78
-4.83 (-3.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 23.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.54% | ||
| ROE | 29.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.54% | ||
| PM (TTM) | 15.1% | ||
| GM | 46.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.16 | ||
| Quick Ratio | 3.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-35%
EPS 3Y47.9%
EPS 5Y
EPS Q2Q%
EPS Next Y-34.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-30.11%
Revenue growth 3Y43.55%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y