ENPHASE ENERGY INC (ENPH) Stock Fundamental Analysis
NASDAQ:ENPH - Nasdaq - US29355A1079 - Common Stock - Currency: USD
ENPH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While ENPH has a great profitability rating, there are some minor concerns on its financial health. ENPH has a correct valuation and a medium growth rate.
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.
In the past 5 years ENPH has always been profitable.
ENPH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.78%, ENPH is doing good in the industry, outperforming 63.64% of the companies in the same industry.
ENPH has a Return On Equity of 18.32%. This is amongst the best in the industry. ENPH outperforms 83.64% of its industry peers.
With a decent Return On Invested Capital value of 6.71%, ENPH is doing good in the industry, outperforming 71.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ENPH is in line with the industry average of 11.17%.
The last Return On Invested Capital (6.71%) for ENPH is well below the 3 year average (10.89%), which needs to be investigated, but indicates that ENPH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 18.32% | ||
| ROIC | 6.71% |
ROA(3y)9.67%
ROA(5y)9.44%
ROE(3y)35.03%
ROE(5y)33.31%
ROIC(3y)10.89%
ROIC(5y)13.62%
1.3 Margins
The Profit Margin of ENPH (10.43%) is better than 68.18% of its industry peers.
In the last couple of years the Profit Margin of ENPH has declined.
ENPH has a Operating Margin of 10.73%. This is in the better half of the industry: ENPH outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of ENPH has declined.
ENPH's Gross Margin of 47.91% is in line compared to the rest of the industry. ENPH outperforms 58.18% of its industry peers.
ENPH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.73% | ||
| PM (TTM) | 10.43% | ||
| GM | 47.91% |
OM growth 3Y-24.77%
OM growth 5Y-16.62%
PM growth 3Y-9.82%
PM growth 5Y-21.45%
GM growth 3Y5.64%
GM growth 5Y5.94%
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
ENPH has more shares outstanding than it did 5 years ago.
ENPH has a worse debt/assets ratio than last year.
2.2 Solvency
ENPH has an Altman-Z score of 2.18. This is not the best score and indicates that ENPH is in the grey zone with still only limited risk for bankruptcy at the moment.
ENPH's Altman-Z score of 2.18 is on the low side compared to the rest of the industry. ENPH is outperformed by 64.55% of its industry peers.
ENPH has a debt to FCF ratio of 2.55. This is a good value and a sign of high solvency as ENPH would need 2.55 years to pay back of all of its debts.
ENPH has a Debt to FCF ratio of 2.55. This is in the better half of the industry: ENPH outperforms 64.55% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that ENPH is somewhat dependend on debt financing.
ENPH has a Debt to Equity ratio of 0.70. This is in the lower half of the industry: ENPH underperforms 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.65
WACC10.38%
2.3 Liquidity
ENPH has a Current Ratio of 1.90. This is a normal value and indicates that ENPH is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.90, ENPH is not doing good in the industry: 78.18% of the companies in the same industry are doing better.
A Quick Ratio of 1.77 indicates that ENPH should not have too much problems paying its short term obligations.
ENPH has a worse Quick ratio (1.77) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The earnings per share for ENPH have decreased strongly by -20.12% in the last year.
ENPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.06% yearly.
Looking at the last year, ENPH shows a very negative growth in Revenue. The Revenue has decreased by -22.15% in the last year.
ENPH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.34% yearly.
EPS 1Y (TTM)-20.12%
EPS 3Y-0.69%
EPS 5Y20.06%
EPS Q2Q%94.29%
Revenue 1Y (TTM)-22.15%
Revenue growth 3Y-1.26%
Revenue growth 5Y16.34%
Sales Q2Q%35.22%
3.2 Future
ENPH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.77% yearly.
Based on estimates for the next years, ENPH will show a quite strong growth in Revenue. The Revenue will grow by 12.77% on average per year.
EPS Next Y4.03%
EPS Next 2Y14.35%
EPS Next 3Y15.92%
EPS Next 5Y21.77%
Revenue Next Year10.12%
Revenue Next 2Y9.89%
Revenue Next 3Y10.94%
Revenue Next 5Y12.77%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.68, ENPH is valued correctly.
Based on the Price/Earnings ratio, ENPH is valued cheaply inside the industry as 84.55% of the companies are valued more expensively.
ENPH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 12.79, the valuation of ENPH can be described as correct.
88.18% of the companies in the same industry are more expensive than ENPH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ENPH to the average of the S&P500 Index (21.76), we can say ENPH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 12.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENPH is valued a bit cheaper than 71.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ENPH is valued cheaper than 96.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.02 | ||
| EV/EBITDA | 15.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ENPH does not grow enough to justify the current Price/Earnings ratio.
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 15.92% in the coming years.
PEG (NY)3.64
PEG (5Y)0.73
EPS Next 2Y14.35%
EPS Next 3Y15.92%
5. Dividend
5.1 Amount
No dividends for ENPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
39.64
+1.63 (+4.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.56%
Inst Owner Change1.61%
Ins Owners3.35%
Ins Owner Change0.62%
Market Cap5.20B
Analysts65.65
Price Target57.74 (45.66%)
Short Float %13.22%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.14%
Min EPS beat(2)-5.07%
Max EPS beat(2)27.34%
EPS beat(4)1
Avg EPS beat(4)-1.54%
Min EPS beat(4)-16.87%
Max EPS beat(4)27.34%
EPS beat(8)2
Avg EPS beat(8)-0.93%
EPS beat(12)6
Avg EPS beat(12)5.08%
EPS beat(16)10
Avg EPS beat(16)9.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-3.27%
Max Revenue beat(2)-0.64%
Revenue beat(4)0
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-0.64%
Revenue beat(8)0
Avg Revenue beat(8)-4.75%
Revenue beat(12)3
Avg Revenue beat(12)-3%
Revenue beat(16)6
Avg Revenue beat(16)-2.13%
PT rev (1m)-27.08%
PT rev (3m)-34.87%
EPS NQ rev (1m)-20.94%
EPS NQ rev (3m)-21.83%
EPS NY rev (1m)-24.01%
EPS NY rev (3m)-27%
Revenue NQ rev (1m)-5.02%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)-5.45%
Revenue NY rev (3m)-11.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 12.79 | ||
| P/S | 3.65 | ||
| P/FCF | 11.02 | ||
| P/OCF | 10.14 | ||
| P/B | 6.42 | ||
| P/tB | 9.27 | ||
| EV/EBITDA | 15.41 |
EPS(TTM)2.7
EY6.81%
EPS(NY)3.1
Fwd EY7.82%
FCF(TTM)3.6
FCFY9.08%
OCF(TTM)3.91
OCFY9.86%
SpS10.85
BVpS6.18
TBVpS4.28
PEG (NY)3.64
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 18.32% | ||
| ROCE | 7.84% | ||
| ROIC | 6.71% | ||
| ROICexc | 27.2% | ||
| ROICexgc | 56.72% | ||
| OM | 10.73% | ||
| PM (TTM) | 10.43% | ||
| GM | 47.91% | ||
| FCFM | 33.17% |
ROA(3y)9.67%
ROA(5y)9.44%
ROE(3y)35.03%
ROE(5y)33.31%
ROIC(3y)10.89%
ROIC(5y)13.62%
ROICexc(3y)29.55%
ROICexc(5y)N/A
ROICexgc(3y)43.52%
ROICexgc(5y)N/A
ROCE(3y)12.74%
ROCE(5y)15.93%
ROICexcg growth 3Y-41.75%
ROICexcg growth 5Y-24.25%
ROICexc growth 3Y-35.85%
ROICexc growth 5Y-25.26%
OM growth 3Y-24.77%
OM growth 5Y-16.62%
PM growth 3Y-9.82%
PM growth 5Y-21.45%
GM growth 3Y5.64%
GM growth 5Y5.94%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.55 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 50.32% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 219.3% | ||
| Profit Quality | 317.92% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 2.18 |
F-Score6
WACC10.38%
ROIC/WACC0.65
Cap/Depr(3y)89.33%
Cap/Depr(5y)108.77%
Cap/Sales(3y)3.11%
Cap/Sales(5y)3.16%
Profit Quality(3y)259%
Profit Quality(5y)225.8%
High Growth Momentum
Growth
EPS 1Y (TTM)-20.12%
EPS 3Y-0.69%
EPS 5Y20.06%
EPS Q2Q%94.29%
EPS Next Y4.03%
EPS Next 2Y14.35%
EPS Next 3Y15.92%
EPS Next 5Y21.77%
Revenue 1Y (TTM)-22.15%
Revenue growth 3Y-1.26%
Revenue growth 5Y16.34%
Sales Q2Q%35.22%
Revenue Next Year10.12%
Revenue Next 2Y9.89%
Revenue Next 3Y10.94%
Revenue Next 5Y12.77%
EBIT growth 1Y-42.56%
EBIT growth 3Y-25.72%
EBIT growth 5Y-3%
EBIT Next Year81.72%
EBIT Next 3Y37.04%
EBIT Next 5Y22.99%
FCF growth 1Y-43.27%
FCF growth 3Y17.03%
FCF growth 5Y31.03%
OCF growth 1Y-42.28%
OCF growth 3Y13.43%
OCF growth 5Y29.86%