ENPHASE ENERGY INC (ENPH) Stock Fundamental Analysis
NASDAQ:ENPH - Nasdaq - US29355A1079 - Common Stock - Currency: USD
ENPH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. ENPH scores excellent on profitability, but there are some minor concerns on its financial health. ENPH may be a bit undervalued, certainly considering the very reasonable score on growth
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.
ENPH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENPH has a Return On Assets of 4.78%. This is in the better half of the industry: ENPH outperforms 63.30% of its industry peers.
ENPH has a better Return On Equity (18.32%) than 82.57% of its industry peers.
With a decent Return On Invested Capital value of 6.71%, ENPH is doing good in the industry, outperforming 71.56% 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 11.32%.
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
Looking at the Profit Margin, with a value of 10.43%, ENPH is in the better half of the industry, outperforming 66.06% of the companies in the same industry.
ENPH's Profit Margin has declined in the last couple of years.
ENPH has a better Operating Margin (10.73%) than 64.22% of its industry peers.
In the last couple of years the Operating Margin of ENPH has declined.
ENPH has a Gross Margin (47.91%) which is comparable to the rest of the industry.
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.
The number of shares outstanding for ENPH has been reduced compared to 1 year ago.
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 2.41. 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.
Looking at the Altman-Z score, with a value of 2.41, ENPH is doing worse than 60.55% of the companies in the same industry.
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.
The Debt to FCF ratio of ENPH (2.55) is better than 67.89% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that 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: 78.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.78
WACC8.57%
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: 77.98% 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.
The Quick ratio of ENPH (1.77) is worse than 66.06% 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.
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.
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.
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.
ENPH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.77% yearly.
EPS Next Y36.9%
EPS Next 2Y28.54%
EPS Next 3Y25.44%
EPS Next 5Y21.77%
Revenue Next Year11.52%
Revenue Next 2Y11.49%
Revenue Next 3Y13.16%
Revenue Next 5Y12.77%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 16.87 indicates a correct valuation of ENPH.
Compared to the rest of the industry, the Price/Earnings ratio of ENPH indicates a somewhat cheap valuation: ENPH is cheaper than 78.90% of the companies listed in the same industry.
ENPH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.63 indicates a reasonable valuation of ENPH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENPH indicates a rather cheap valuation: ENPH is cheaper than 88.99% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ENPH to the average of the S&P500 Index (20.86), we can say ENPH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.87 | ||
| Fwd PE | 11.63 |
4.2 Price Multiples
ENPH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ENPH is cheaper than 65.14% of the companies in the same industry.
93.58% 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 | 12.66 | ||
| EV/EBITDA | 19.08 |
4.3 Compensation for Growth
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.
ENPH's earnings are expected to grow with 25.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)0.84
EPS Next 2Y28.54%
EPS Next 3Y25.44%
5. Dividend
5.1 Amount
No dividends for ENPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
45.56
+1.01 (+2.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.56%
Inst Owner Change1.06%
Ins Owners3.35%
Ins Owner Change0.41%
Market Cap5.98B
Analysts68.26
Price Target62.32 (36.79%)
Short Float %11.88%
Short Ratio3.24
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)11.4%
Min EPS beat(2)-4.53%
Max EPS beat(2)27.34%
EPS beat(4)1
Avg EPS beat(4)-1.41%
Min EPS beat(4)-16.87%
Max EPS beat(4)27.34%
EPS beat(8)2
Avg EPS beat(8)-0.86%
EPS beat(12)6
Avg EPS beat(12)5.13%
EPS beat(16)10
Avg EPS beat(16)9.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.97%
Min Revenue beat(2)-3.3%
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)-22.49%
PT rev (3m)-35.3%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)-10.42%
EPS NY rev (1m)-2.67%
EPS NY rev (3m)-13.63%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-8.13%
Revenue NY rev (1m)-4.73%
Revenue NY rev (3m)-11.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.87 | ||
| Fwd PE | 11.63 | ||
| P/S | 4.2 | ||
| P/FCF | 12.66 | ||
| P/OCF | 11.65 | ||
| P/B | 7.37 | ||
| P/tB | 10.66 | ||
| EV/EBITDA | 19.08 |
EPS(TTM)2.7
EY5.93%
EPS(NY)3.92
Fwd EY8.59%
FCF(TTM)3.6
FCFY7.9%
OCF(TTM)3.91
OCFY8.58%
SpS10.85
BVpS6.18
TBVpS4.28
PEG (NY)0.46
PEG (5Y)0.84
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 | 2.41 |
F-Score6
WACC8.57%
ROIC/WACC0.78
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 Y36.9%
EPS Next 2Y28.54%
EPS Next 3Y25.44%
EPS Next 5Y21.77%
Revenue 1Y (TTM)-22.15%
Revenue growth 3Y-1.26%
Revenue growth 5Y16.34%
Sales Q2Q%35.22%
Revenue Next Year11.52%
Revenue Next 2Y11.49%
Revenue Next 3Y13.16%
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%