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Enphase Energy
(NASDAQ:ENPH)
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Rating:60Neutral
Price Target:
$41.00
▲(11.72% Upside)
Action:Reiterated
Date:07/29/26
ENPH’s score is driven primarily by decent underlying financial resilience (profitability, positive free cash flow, and a materially stronger balance sheet with zero debt), but it is held back by a clearly bearish technical trend (price below all major moving averages) and a mixed near-term outlook from the earnings call (demand softness, inventory correction, and margin headwinds with limited visibility). Valuation is also a restraint given the relatively high P/E amid negative TTM revenue growth.
Positive Factors
De-risked balance sheet (zero debt)
Zero reported debt and a sizable equity base materially reduce bankruptcy and refinancing risk, giving Enphase durable financial flexibility to fund R&D, product launches, and inventory management through cyclical demand swings without relying on external debt markets.
Negative Factors
Revenue decline and weakening growth
A sustained decline in trailing revenue signals softer end-market demand and reduced pricing leverage. Over 2–6 months this constrains operating leverage, limits reinvestment capacity and raises the bar for returning to the higher-margin peak era the company previously experienced.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked balance sheet (zero debt)
Zero reported debt and a sizable equity base materially reduce bankruptcy and refinancing risk, giving Enphase durable financial flexibility to fund R&D, product launches, and inventory management through cyclical demand swings without relying on external debt markets.
Read all positive factors
Enphase Energy Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how much sales come from each region so you can see where Enphase is strongest and where growth or risk is concentrated. High dependence on a few markets can mean exposure to local policy changes, tariffs, or slowing installer demand, while diversification signals broader growth opportunities.
Shows how much sales come from each region so you can see where Enphase is strongest and where growth or risk is concentrated. High dependence on a few markets can mean exposure to local policy changes, tariffs, or slowing installer demand, while diversification signals broader growth opportunities.
Data provided by:
The Fly
The FlyEnphase Energy (ENPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.96B
Dividend YieldN/A
Average Volume (3M)5.56M
Price to Earnings (P/E)36.8
Beta (1Y)0.75
Revenue Growth-10.41%
EPS Growth-22.03%
CountryUS
Employees2,872
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)1.02
Shares Outstanding132,144,650
10 Day Avg. Volume3,562,142
30 Day Avg. Volume5,558,846
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)3.87
Price to Sales (P/S)2.85
P/FCF Ratio43.83
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$48.20Price Target Upside31.35% Upside
Rating ConsensusHold
Number of Analyst Covering20
EPS Forecast (FY)2.02
Revenue Forecast (FY)$1.18B
Enphase Energy Business Overview & Revenue Model
Company Description
Enphase Energy, Inc., along with its subsidiaries, is dedicated to developing, manufacturing, and distributing home energy solutions for the global solar photovoltaic industry. Their core offering is a semiconductor-based microinverter, designed t...
How the Company Makes Money
Enphase primarily makes money by selling hardware and related solutions used in distributed (primarily residential) solar-plus-storage systems. Its largest revenue stream is the sale of microinverters (sold as part of Enphase’s IQ series product f...
Enphase Energy Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture. Enphase delivered solid non-GAAP profitability, strong free cash flow, record customer NPS, meaningful safe-harbor agreements and clear product road‑map progress (IQ9 family, 5th-gen battery, bidirectional EV charger, IQ SST). At the same time near-term demand softness—especially a 23% sequential U.S. revenue decline, a large sequential sell-through drop (48%), elevated channel inventory, GAAP earnings deterioration, tariff and PTC-related margin impacts, and TPO/tax-equity financing headwinds—create material short-term pressure. Management outlined corrective actions (pricing, under-shipping to rebalance channel, prepaid-lease pilot expansion, and tariff refund filings) and reiterated multi-year growth programs, but acknowledged limited visibility for Q3/Q4. Overall, positives (cash generation, product pipeline, safe-harbor bookings, Europe green shoots) are meaningful but currently counterbalanced by significant near-term operational and margin headwinds.Positive Updates
Revenue and Shipments
Q1 revenue of $282.9 million; shipped ~627.6 MW DC of microinverters and 103.1 MWh of IQ batteries (transcript figures), and management reported ~1.4M microinverters shipped. Q1 included $34.5 million of safe-harbor revenue.
Negative Updates
Sequential U.S. Revenue Decline
U.S. revenue declined 23% sequentially in Q1, primarily due to expiration of 2025 tax credits and seasonality.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Shipments
Q1 revenue of $282.9 million; shipped ~627.6 MW DC of microinverters and 103.1 MWh of IQ batteries (transcript figures), and management reported ~1.4M microinverters shipped. Q1 included $34.5 million of safe-harbor revenue.
Read all positive updates
Company Guidance
Enphase guided Q2 revenue of $280–$310 million (including about $85 million of safe‑harbor revenue) and battery shipments of 100–110 MWh, with management ~85% booked to the midpoint; they plan to under‑ship roughly $25 million in Q2 to correct Q1 over‑shipment and expect modest underlying sell‑through growth (Q1 sell‑through was down 48% sequentially and 18% YoY). Gross‑margin guidance is 42%–45% GAAP (including ~3 percentage points of reciprocal‑tariff impact) and 44%–47% non‑GAAP; operating‑expense guidance is $120–$124M GAAP (including roughly $45M of stock‑based comp, acquisition amortization and restructuring) and $75–$79M non‑GAAP. They also estimated Q3 safe‑harbor of ~$40–$50M, noted YTD product agreements of ~$843.6M ($89.6M via 5% ITC safe harbor and $754M via physical work), cited price cuts to boost battery volumes (U.S. list prices down ~12–14% in March; EU battery distributor prices down ~10% in May), and provided cash context: $930.6M cash/marketable securities at Q1 end, $83M free cash flow in Q1, ~$162.9M of PTCs on the balance sheet, and ~$50M of tariff refund claims submitted (expected in ~90–120 days).Enphase Energy Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.47B | 1.33B | 2.29B | 2.33B | 1.38B |
| Gross Profit | 623.68M | 687.00M | 629.14M | 1.06B | 974.60M | 554.42M |
| EBITDA | 177.90M | 289.98M | 210.45M | 596.69M | 520.26M | 196.93M |
| Net Income | 134.02M | 172.13M | 102.66M | 438.94M | 397.36M | 145.45M |
Balance Sheet | ||||||
| Total Assets | 2.92B | 3.51B | 3.25B | 3.38B | 3.08B | 2.08B |
| Cash, Cash Equivalents and Short-Term Investments | 967.06M | 1.51B | 1.62B | 1.70B | 1.61B | 1.02B |
| Total Debt | 613.37M | 1.24B | 1.33B | 1.32B | 1.31B | 1.05B |
| Total Liabilities | 1.74B | 2.42B | 2.42B | 2.40B | 2.26B | 1.65B |
| Stockholders Equity | 1.18B | 1.09B | 833.02M | 983.62M | 825.57M | 430.17M |
Cash Flow | ||||||
| Free Cash Flow | 152.63M | 95.90M | 480.09M | 586.38M | 698.37M | 299.52M |
| Operating Cash Flow | 204.69M | 136.54M | 513.69M | 696.78M | 744.82M | 352.03M |
| Investing Cash Flow | 611.76M | 106.79M | 128.27M | -366.36M | -371.91M | -1.22B |
| Financing Cash Flow | -649.45M | -241.62M | -460.27M | -516.77M | -17.13M | 309.41M |
Enphase Energy Technical Analysis
Negative
36.70
Price Trends
49.74
Negative
43.96
Negative
40.05
Negative
Market Momentum
-2.86
Negative
43.91
Neutral
51.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENPH, the sentiment is Negative. The current price of 36.7 is below the 20-day moving average (MA) of 40.44, below the 50-day MA of 49.74, and below the 200-day MA of 40.05, indicating a bearish trend. The MACD of -2.86 indicates Negative momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 51.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENPH.
Enphase Energy Risk Analysis
Enphase Energy disclosed 53 risk factors in its most recent earnings report. Enphase Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enphase Energy Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $4.96B | 36.80 | 12.28% | ― | -10.41% | -22.03% | |
56 Neutral | $1.47B | 43.59 | 5.67% | ― | 37.75% | 77.43% | |
55 Neutral | $802.97M | -6.23 | -20.64% | ― | 13.19% | 54.98% | |
53 Neutral | $2.34B | 4.00 | 18.35% | ― | 52.36% | ― | |
49 Neutral | $2.51B | -6.69 | -79.58% | ― | 35.40% | 79.65% | |
45 Neutral | $760.92M | -0.37 | -17.23% | 18.78% | -22.00% | -92.74% |
* Technology Sector Average
ENPH
Enphase Energy
39.35
7.66
24.17%
JKS
JinkoSolar
15.74
-3.94
-20.00%
SEDG
SolarEdge Technologies
45.12
19.49
76.04%
RUN
Sunrun
10.43
0.73
7.53%
ARRY
Array Technologies
5.68
-0.33
-5.42%
SHLS
Shoals Technologies Group
9.37
3.99
74.16%
Enphase Energy Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Enphase Monetizes U.S. Manufacturing Tax Credits for Liquidity
Positive
Jun 18, 2026
On June 15, 2026, Enphase Energy, Inc. entered into a Tax Credit Transfer Agreement with a leading financial institution to sell up to $150 million in advanced manufacturing production tax credits generated from eligible components produced and so...
Business Operations and StrategyExecutive/Board Changes
Enphase Energy Adds Former NVIDIA Executive to Board
Positive
Jun 15, 2026
Enphase Energy, Inc. has expanded its Board of Directors to eight members, effective June 11, 2026, and appointed former NVIDIA executive Shanker Trivedi to fill a new Class I seat, with his term running until the 2028 annual shareholder meeting, ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Enphase Energy Shareholders Approve Expanded Equity Incentive Plan
Positive
May 15, 2026
Enphase Energy held its 2026 Annual Meeting of Stockholders on May 13, 2026, where shareholders approved an amendment and restatement of the 2021 Equity Incentive Plan to add 2,000,000 shares of common stock for future issuance, signaling continue...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.