Enphase Energy, Inc. (NASDAQ: ENPH)

Sector: Technology Industry: Solar CIK: 0001463101
Market Cap 6.00 Bn
P/B 5.52
P/E 34.84
P/S 4.07
ROIC (Qtr) 7.02
Div Yield % 0.00
Rev 1y % (Qtr) -10.29
Total Debt (Qtr) 1.20 Bn
Debt/Equity (Qtr) 1.11
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About

Enphase Energy, Inc. (ENPH) is a prominent player in the global energy technology industry, specializing in the design, development, manufacturing, and sale of home energy solutions. With its headquarters in Emeryville, California, the company has been operational since 2006 and is publicly traded on the NASDAQ stock exchange. Enphase's primary business activities revolve around managing energy generation, storage, and control and communications on a single intelligent platform. The company offers a range of products, including IQ Microinverters,...

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Investment thesis

Bull case

  • Operating cash flow of 136.54M provides exceptional 30.20x coverage of interest expenses 4.52M, showing strong debt service capability.
  • Strong tangible asset base of 3.27B provides 2.72x coverage of total debt 1.20B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 95.90M exceeds capital expenditure of 40.64M by 2.36x, indicating strong organic growth funding capability.
  • Tangible assets of 3.27B provide exceptional 6.31x coverage of deferred revenue 518.45M, showing strong service capability backing.
  • Short-term investments of 1.04B provide solid 2.43x coverage of other current liabilities 426.93M, indicating strong liquidity.

Bear case

  • Investment activities of 106.79M provide weak support for R&D spending of 189.07M, which is 0.56x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 136.54M provides insufficient coverage of deferred revenue obligations of 518.45M, which is 0.26x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 136.54M shows concerning coverage of stock compensation expenses of 214.09M, with a 0.64 ratio indicating potential earnings quality issues.
  • Operating earnings of 209.34M show weak coverage of depreciation charges of 80.64M, with a 2.60 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 95.90M represents just -0.94x of debt issuance (102.17M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Geographical Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Solar
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 FSLR First Solar, Inc. 24.22 Bn 17.30 4.80 0.55 Bn
2 NXT Nextpower Inc. 18.09 Bn 30.50 5.02 0.00 Bn
3 ENPH Enphase Energy, Inc. 6.00 Bn 34.84 4.07 1.20 Bn
4 RUN Sunrun Inc. 4.28 Bn -1.73 1.85 14.69 Bn
5 SEDG Solaredge Technologies, Inc. 2.16 Bn -3.68 2.12 0.40 Bn
6 SHLS Shoals Technologies Group, Inc. 1.87 Bn 56.32 4.32 0.17 Bn
7 ARRY Array Technologies, Inc. 1.73 Bn -18.82 1.30 0.68 Bn
8 JKS JinkoSolar Holding Co., Ltd. 1.37 Bn -2.86 0.14 6.93 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.94 1.41
EV to Cash from Ops. EV/CFO 49.79 3.45
EV to Debt EV to Debt 5.65 6.34
EV to EBIT EV/EBIT 32.48 22.16
EV to EBITDA EV/EBITDA 28.55 5.58
EV to Free Cash Flow [EV/FCF] EV/FCF 70.89 9.74
EV to Market Cap EV to Market Cap 1.13 2.40
EV to Revenue EV/Rev 4.62 312.86
Price to Book Value [P/B] P/B 5.52 0.12
Price to Earnings [P/E] P/E 34.84 -3.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -9.53
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Int. cover (Qtr) 46.30 -54.67
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -20.94 -54.29
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 2.20 50.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 59.55 3.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 50.09 -309.44
EBIT Growth (1y) % EBIT 1y % (Qtr) 62.19 -42.85
EBT Growth (1y) % EBT 1y % (Qtr) 70.45 -48.74
EPS Growth (1y) % EPS 1y % (Qtr) 72.37 -74.61
FCF Growth (1y) % FCF 1y % (Qtr) -80.02 4.39
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.20 701.13
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.42 0.65
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.38 0.39
Current Ratio Curr Ratio (Qtr) 2.07 1.43
Debt to Equity Ratio Debt/Equity (Qtr) 1.11 0.31
Interest Cover Ratio Int Coverage (Qtr) 46.30 -54.67
Times Interest Earned Times Interest Earned (Qtr) 46.30 -54.67
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 19.70 -907.38
EBIT Margin % EBIT Margin % (Qtr) 14.21 -994.26
EBT Margin % EBT Margin % (Qtr) 13.90 -1,508.47
Gross Margin % Gross Margin % (Qtr) 46.60 10.82
Net Profit Margin % Net Margin % (Qtr) 11.70 -1,462.08