ENPHASE ENERGY INC (ENPH)
US29355A1079 - Common Stock
Overall ENPH gets a fundamental rating of 6 out of 10. We evaluated ENPH against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making ENPH a very profitable company, without any liquidiy or solvency issues. ENPH is not valued too expensively and it also shows a decent growth rate. With these ratings, ENPH could be worth investigating further for quality investing!.
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.
ENPH had positive earnings in each of the past 5 years.
In the past 5 years ENPH always reported a positive cash flow from operatings.
1.2 Ratios
ENPH's Return On Assets of 12.98% is amongst the best of the industry. ENPH outperforms 81.13% of its industry peers.
Looking at the Return On Equity, with a value of 44.63%, ENPH belongs to the top of the industry, outperforming 97.17% of the companies in the same industry.
The Return On Invested Capital of ENPH (14.04%) is better than 82.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENPH is above the industry average of 11.07%.
The last Return On Invested Capital (14.04%) for ENPH is above the 3 year average (13.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.98% | ||
| ROE | 44.63% | ||
| ROIC | 14.04% |
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
With a decent Profit Margin value of 19.16%, ENPH is doing good in the industry, outperforming 73.58% of the companies in the same industry.
In the last couple of years the Profit Margin of ENPH has grown nicely.
ENPH's Operating Margin of 20.15% is fine compared to the rest of the industry. ENPH outperforms 74.53% of its industry peers.
In the last couple of years the Operating Margin of ENPH has grown nicely.
ENPH's Gross Margin of 46.20% is in line compared to the rest of the industry. ENPH outperforms 51.89% of its industry peers.
In the last couple of years the Gross Margin of ENPH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.15% | ||
| PM (TTM) | 19.16% | ||
| GM | 46.2% |
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
ENPH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ENPH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.53 indicates that ENPH is not in any danger for bankruptcy at the moment.
ENPH has a Altman-Z score of 5.53. This is in the better half of the industry: ENPH outperforms 64.15% of its industry peers.
The Debt to FCF ratio of ENPH is 2.21, which is a good value as it means it would take ENPH, 2.21 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.21, ENPH is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
ENPH has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
ENPH's Debt to Equity ratio of 1.32 is on the low side compared to the rest of the industry. ENPH is outperformed by 83.96% of its industry peers.
Although ENPH does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 5.53 |
ROIC/WACC1.27
WACC11.02%
2.3 Liquidity
A Current Ratio of 4.59 indicates that ENPH has no problem at all paying its short term obligations.
ENPH has a better Current ratio (4.59) than 76.42% of its industry peers.
ENPH has a Quick Ratio of 4.19. This indicates that ENPH is financially healthy and has no problem in meeting its short term obligations.
ENPH has a better Quick ratio (4.19) than 76.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.59 | ||
| Quick Ratio | 4.19 |
3. Growth
3.1 Past
The earnings per share for ENPH have decreased by -4.76% in the last year.
The Earnings Per Share has been growing by 117.69% on average over the past years. This is a very strong growth
ENPH shows a decrease in Revenue. In the last year, the revenue decreased by -1.72%.
ENPH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.60% yearly.
EPS 1Y (TTM)-4.76%
EPS 3Y47.9%
EPS 5Y117.69%
EPS growth Q2Q-64.24%
Revenue 1Y (TTM)-1.72%
Revenue growth 3Y43.55%
Revenue growth 5Y48.6%
Revenue growth Q2Q-58.25%
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 12.05% 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 10.29% on average per year.
EPS Next Y-23.3%
EPS Next 2Y12.16%
EPS Next 3Y15.27%
EPS Next 5Y12.05%
Revenue Next Year-30.52%
Revenue Next 2Y-0.7%
Revenue Next 3Y5.59%
Revenue Next 5Y10.29%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.20 indicates a rather expensive valuation of ENPH.
66.04% of the companies in the same industry are more expensive than ENPH, based on the Price/Earnings ratio.
ENPH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.76, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 31.55 indicates a quite expensive valuation of ENPH.
The rest of the industry has a similar Price/Forward Earnings ratio as ENPH.
The average S&P500 Price/Forward Earnings ratio is at 21.26. ENPH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 31.55 |
4.2 Price Multiples
62.26% of the companies in the same industry are more expensive than ENPH, based on the Enterprise Value to EBITDA ratio.
78.30% of the companies in the same industry are more expensive than ENPH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.65 | ||
| EV/EBITDA | 24.27 |
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 15.27% in the coming years.
PEG (NY)N/A
PEG (5Y)0.21
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 (4/19/2024, 7:00:02 PM)
After market: 107 +0.52 (+0.49%)106.48
-2.69 (-2.46%)
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 Cap14.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 31.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.98% | ||
| ROE | 44.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.15% | ||
| PM (TTM) | 19.16% | ||
| GM | 46.2% | ||
| 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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.59 | ||
| Quick Ratio | 4.19 | ||
| 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)
Growth
EPS 1Y (TTM)-4.76%
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)-1.72%
Revenue growth 3Y43.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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