Don't overlook NASDAQ:ENPH—it's a hidden gem with strong fundamentals and an attractive price tag.

Discover ENPHASE ENERGY INC (NASDAQ:ENPH), an undervalued stock highlighted by our stock screener. NASDAQ:ENPH showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Exploring NASDAQ:ENPH's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:ENPH has achieved a 6 out of 10:

• Based on the Price/Earnings ratio, ENPH is valued a bit cheaper than the industry average as 73.15% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of ENPH indicates a somewhat cheap valuation: ENPH is cheaper than 79.63% of the companies listed in the same industry.
• ENPH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.38.
• Based on the Price/Free Cash Flow ratio, ENPH is valued cheaper than 88.89% of the companies in the same industry.
• ENPH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• ENPH has a very decent 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 37.45% in the coming years.

Profitability Examination for NASDAQ:ENPH

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:ENPH was assigned a score of 6 for profitability:

• ENPH has a Return On Equity of 12.32%. This is in the better half of the industry: ENPH outperforms 72.22% of its industry peers.
• The 3 year average ROIC (10.89%) for ENPH is well above the current ROIC(2.99%). The reason for the recent decline needs to be investigated.
• ENPH has a better Profit Margin (7.72%) than 60.19% of its industry peers.
• ENPH's Gross Margin has improved in the last couple of years.

Exploring NASDAQ:ENPH's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:ENPH was assigned a score of 4 for health:

• ENPH has a debt to FCF ratio of 2.71. This is a good value and a sign of high solvency as ENPH would need 2.71 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 2.71, ENPH is doing good in the industry, outperforming 69.44% of the companies in the same industry.
• A Current Ratio of 3.53 indicates that ENPH has no problem at all paying its short term obligations.
• A Quick Ratio of 3.28 indicates that ENPH has no problem at all paying its short term obligations.
• ENPH has a better Quick ratio (3.28) than 65.74% of its industry peers.

Growth Analysis for NASDAQ:ENPH

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:ENPH scores a 6 out of 10:

• Measured over the past years, ENPH shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.06% on average per year.
• Measured over the past years, ENPH shows a quite strong growth in Revenue. The Revenue has been growing by 16.34% on average per year.
• The Earnings Per Share is expected to grow by 27.83% on average over the next years. This is a very strong growth
• Based on estimates for the next years, ENPH will show a quite strong growth in Revenue. The Revenue will grow by 18.90% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of ENPH for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.