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 is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years ENPH had a positive operating cash flow.
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's Return On Equity of 18.32% is amongst the best of the industry. ENPH outperforms 82.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.71%, ENPH is in the better half of the industry, outperforming 71.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ENPH is in line with the industry average of 10.57%.
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 67.27% of its industry peers.
ENPH's Profit Margin has declined in the last couple of years.
ENPH's Operating Margin of 10.73% is fine compared to the rest of the industry. ENPH outperforms 64.55% of its industry peers.
In the last couple of years the Operating Margin of ENPH has declined.
ENPH has a Gross Margin of 47.91%. This is comparable to the rest of the industry: ENPH outperforms 54.55% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ENPH is still creating some value.
Compared to 1 year ago, ENPH has less shares outstanding
The number of shares outstanding for ENPH has been increased compared to 5 years ago.
Compared to 1 year ago, ENPH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.11 indicates that ENPH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ENPH's Altman-Z score of 2.11 is on the low side compared to the rest of the industry. ENPH is outperformed by 62.73% 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.
With a decent Debt to FCF ratio value of 2.55, ENPH is doing good in the industry, outperforming 63.64% of the companies in the same industry.
ENPH has a Debt/Equity ratio of 0.70. This is a neutral value indicating ENPH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, ENPH is not doing good in the industry: 79.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.75
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.90 indicates that ENPH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.90, ENPH is not doing good in the industry: 79.09% of the companies in the same industry are doing better.
ENPH has a Quick Ratio of 1.77. This is a normal value and indicates that ENPH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.77, ENPH is doing worse than 63.64% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 20.06% on average over the past years. This is a very strong growth
Looking at the last year, ENPH shows a very negative growth in Revenue. The Revenue has decreased by -22.15% in the last year.
The Revenue has been growing by 16.34% on average over the past years. This is quite good.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.95% yearly.
The Revenue is expected to grow by 9.16% on average over the next years. This is quite good.
EPS Next Y4.24%
EPS Next 2Y14.79%
EPS Next 3Y15.97%
EPS Next 5Y17.95%
Revenue Next Year10.12%
Revenue Next 2Y9.85%
Revenue Next 3Y10.9%
Revenue Next 5Y9.16%
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 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
A Price/Earnings ratio of 13.28 indicates a correct valuation of ENPH.
Based on the Price/Earnings ratio, ENPH is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
ENPH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.48 indicates a reasonable valuation of ENPH.
Based on the Price/Forward Earnings ratio, ENPH is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
ENPH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENPH is valued a bit cheaper than 75.45% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENPH indicates a rather cheap valuation: ENPH is cheaper than 97.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.96 | ||
| EV/EBITDA | 14.2 |
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.
The decent profitability rating of ENPH may justify a higher PE ratio.
ENPH's earnings are expected to grow with 15.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.13
PEG (5Y)0.66
EPS Next 2Y14.79%
EPS Next 3Y15.97%
5. Dividend
5.1 Amount
No dividends for ENPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.85
-0.53 (-1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.38%
Inst Owner Change0.57%
Ins Owners3.12%
Ins Owner Change0.62%
Market Cap4.70B
Analysts64
Price Target53.21 (48.42%)
Short Float %19.16%
Short Ratio3.54
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)-7.84%
PT rev (3m)-33.81%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-21.78%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-26.85%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 11.48 | ||
| P/S | 3.31 | ||
| P/FCF | 9.96 | ||
| P/OCF | 9.17 | ||
| P/B | 5.8 | ||
| P/tB | 8.39 | ||
| EV/EBITDA | 14.2 |
EPS(TTM)2.7
EY7.53%
EPS(NY)3.12
Fwd EY8.71%
FCF(TTM)3.6
FCFY10.04%
OCF(TTM)3.91
OCFY10.9%
SpS10.85
BVpS6.18
TBVpS4.28
PEG (NY)3.13
PEG (5Y)0.66
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 | 2.11 |
F-Score6
WACC8.96%
ROIC/WACC0.75
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 Y4.24%
EPS Next 2Y14.79%
EPS Next 3Y15.97%
EPS Next 5Y17.95%
Revenue 1Y (TTM)-22.15%
Revenue growth 3Y-1.26%
Revenue growth 5Y16.34%
Sales Q2Q%35.22%
Revenue Next Year10.12%
Revenue Next 2Y9.85%
Revenue Next 3Y10.9%
Revenue Next 5Y9.16%
EBIT growth 1Y-42.56%
EBIT growth 3Y-25.72%
EBIT growth 5Y-3%
EBIT Next Year38.71%
EBIT Next 3Y26.74%
EBIT Next 5Y24.97%
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%