Enphase Energy, Inc. (ENPH) stock analysis

P/E below its 5-year median

Enphase Energy's P/E of 42.9 is below its own 5-year median of 54.9.

P/E above the industry

Enphase Energy's P/E of 42.9 is above the Electronic Components and Accessories median of 34.8.

EV/EBITDA below its 5-year median

Enphase Energy's EV/EBITDA of 25.6 is below its 5-year median of 39.7.

P/B below the industry

Enphase Energy's price-to-book of 3.01 is below the Electronic Components and Accessories median of 3.49.

Trading below fair value

The share price of $28.30 is below our fair value estimate of $36.28.

Margin of safety over 20%

The price is 22.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -14.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -22.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -53.6% over the last twelve months, against a 5-year average of 5.1% a year.

Growing slower than the industry

Revenue grew -19.9% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance issued

The latest outlook (fourth quarter of 2026 Revenue, Oct 27, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 45.8% over the last twelve months, against 48.5% a year earlier.

Return on equity under 15%

Return on equity was 8.1% over the last twelve months and averaged 34.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.3%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Enphase Energy's return on equity of 8.1% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 5.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 7.5% over the last twelve months, against a 5-year average of 13.2%.

Net margin above the industry

Enphase Energy's net margin of 7.5% is above the Electronic Components and Accessories median of 2.9%.

High debt

Debt is 46.1% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 68.4% five years ago to 46.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 33.3% of total debt.

Interest well covered

Operating income covers interest expense 24.0 times.

Short-term assets cover short-term debts

Current assets are 4.09 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.37; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Enphase Energy has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.