ENPHASE ENERGY INC (ENPH)
US29355A1079 - Common Stock
We assign a fundamental rating of 6 out of 10 to ENPH. ENPH was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. While ENPH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ENPH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ENPH was profitable.
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 better Return On Assets (8.54%) than 69.16% of its industry peers.
ENPH's Return On Equity of 29.91% is amongst the best of the industry. ENPH outperforms 88.78% of its industry peers.
ENPH has a Return On Invested Capital of 8.61%. This is in the better half of the industry: ENPH outperforms 72.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENPH is above the industry average of 10.71%.
The 3 year average ROIC (13.93%) for ENPH is well above the current ROIC(8.61%). The reason for the recent decline needs to be investigated.
| 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 70.09% of its industry peers.
ENPH's Profit Margin has improved in the last couple of years.
The Operating Margin of ENPH (14.54%) is better than 68.22% of its industry peers.
In the last couple of years the Operating Margin of ENPH has grown nicely.
ENPH has a Gross Margin (46.36%) which is comparable to the rest of the 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
ENPH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ENPH has less shares outstanding
Compared to 5 years ago, ENPH has more shares outstanding
ENPH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.52 indicates that ENPH is not in any danger for bankruptcy at the moment.
ENPH's Altman-Z score of 5.52 is fine compared to the rest of the industry. ENPH outperforms 61.68% of its industry peers.
ENPH has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as ENPH would need 3.20 years to pay back of all of its debts.
ENPH has a Debt to FCF ratio (3.20) which is in line with its industry peers.
A Debt/Equity ratio of 1.30 is on the high side and indicates that ENPH has dependencies on debt financing.
ENPH's Debt to Equity ratio of 1.30 is on the low side compared to the rest of the industry. ENPH is outperformed by 86.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 5.52 |
ROIC/WACC0.71
WACC12.08%
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.
With a decent Current ratio value of 4.16, ENPH is doing good in the industry, outperforming 64.49% of the companies in the same industry.
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 has a better Quick ratio (3.78) than 71.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.16 | ||
| Quick Ratio | 3.78 |
3. Growth
3.1 Past
ENPH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.00%.
Measured over the past years, ENPH shows a very strong growth in Earnings Per Share. The EPS has been growing by 117.69% on average per year.
The Revenue for ENPH has decreased by -30.11% in the past year. This is quite bad
ENPH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.60% yearly.
EPS 1Y (TTM)-35%
EPS 3Y47.9%
EPS 5Y117.69%
EPS growth Q2Q-74.45%
Revenue 1Y (TTM)-30.11%
Revenue growth 3Y43.55%
Revenue growth 5Y48.6%
Revenue growth 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.
ENPH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.97% yearly.
EPS Next Y-23.3%
EPS Next 2Y12.16%
EPS Next 3Y15.27%
EPS Next 5Y16.68%
Revenue Next Year-30.52%
Revenue Next 2Y-0.7%
Revenue Next 3Y5.59%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.82, which means the current valuation is very expensive for ENPH.
62.62% of the companies in the same industry are more expensive than ENPH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.15. ENPH is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 20.65, which indicates a rather expensive current valuation of ENPH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENPH indicates a somewhat cheap valuation: ENPH is cheaper than 65.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, ENPH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.82 | ||
| Fwd PE | 20.65 |
4.2 Price Multiples
ENPH's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ENPH is valued a bit cheaper than 72.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.45 | ||
| EV/EBITDA | 40.23 |
4.3 Compensation for Growth
ENPH has an outstanding profitability rating, which may justify a higher PE ratio.
ENPH's earnings are expected to grow with 15.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y12.16%
EPS Next 3Y15.27%
5. Dividend
5.1 Amount
No dividends for ENPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ENPHASE ENERGY INC
NASDAQ:ENPH (5/17/2024, 7:00:02 PM)
After market: 114.5 +0.18 (+0.16%)114.32
-2.53 (-2.17%)
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
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Market Cap15.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.82 | ||
| Fwd PE | 20.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
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PEG (NY)N/A
PEG (5Y)0.29
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)
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Profit Quality(3y)
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Growth
EPS 1Y (TTM)-35%
EPS 3Y47.9%
EPS 5Y
EPS growth Q2Q
EPS Next Y-23.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-30.11%
Revenue growth 3Y43.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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