Enphase Energy (ENPH) AI Stock Analysis

• Market Cap: $4.74B
• Dividend Yield: N/A
• Average Volume (3M): 9.26M
• Price to Earnings (P/E): 28.1
• Beta (1Y): 1.03
• Revenue Growth: 4.39%
• EPS Growth: 37.70%
• Country: US
• Employees: 2,781
• Sector: Technology
• Sector Strength: 87
• Industry: Solar
• EPS (TTM): 0.69
• Shares Outstanding: 130,750,780
• 10 Day Avg. Volume: 10,216,831
• 30 Day Avg. Volume: 9,259,783
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 7.12
• Enterprise Value/Ebitda: 17.02
• 1Y Price Target: $39.40
• Price Target Upside: 13.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 22

• Rating: 73 Outperform
• Price Target: $39.00 ▲(12.78% Upside)

Enphase Energy's overall stock score reflects its strong financial performance and strategic initiatives in innovation and global expansion. However, technical indicators suggest a bearish trend, and valuation metrics indicate a premium price, which may deter some investors. The mixed outlook from the earnings call, with both positive growth strategies and potential market challenges, further influences the score.

Positive Factors

New Initiatives

The outlook for 2026 improved with a new initiative to gain TPO share.

Product Development

Enphase's new IQ9 microinverter and fifth-generation battery aim to improve power efficiency and compete with Tesla's Powerwall 3.

Revenue Growth

ENPH is now poised to deliver better-than-expected revenues as TPOs rush to safe harbor ahead of July 2026.

Negative Factors

Market Contraction

Management expects a 20% decrease in the U.S. total addressable market for residential solar, impacting demand for solar loans and cash purchases.

Market Dynamics

ENPH's market share has already eroded due to shifting market dynamics, particularly in the U.S., such as a trend towards TPO and NEM 3.0.

Revenue Guidance

3Q revenue guidance of $330-$370MM missed consensus estimates due to exclusion of safe harbor revenue.

Enphase Energy Business Overview & Revenue Model

Company Description

Enphase Energy, Inc. is a global energy technology company headquartered in Petaluma, California, specializing in solar energy solutions. The company is primarily engaged in the design and manufacture of microinverters, energy management technology, and storage systems for residential and commercial solar energy systems. Enphase's core products include its advanced microinverter systems that convert solar energy into usable electricity, as well as software solutions that enhance the efficiency and performance of solar systems.

How the Company Makes Money

Enphase Energy generates revenue primarily through the sale of its microinverters and energy storage systems. The company offers a range of products that cater to residential and commercial markets, which includes not only the hardware but also software solutions that enable monitoring and management of solar energy systems. Key revenue streams include product sales, installation services, and recurring revenue from software subscriptions that provide ongoing monitoring and analytics. Additionally, Enphase benefits from partnerships with solar distributors, installers, and energy companies, which help expand its market reach and drive sales. The growing demand for renewable energy solutions and government incentives for solar adoption further contribute to Enphase's earnings.

Enphase Energy Financial Statement Overview

Summary

Enphase Energy shows strong profitability with a gross profit margin of 47.7% and a net profit margin of 12.8%. The balance sheet is stable, with a moderate debt-to-equity ratio of 0.78. Cash flow is robust, but growth has slightly decreased. Key risks include moderate leverage and slowing revenue growth.

Income Statement

Enphase Energy's income statement reflects strong profitability and revenue growth. The TTM gross profit margin stands at 47.7%, indicating efficient cost management. Furthermore, the net profit margin has improved to 12.8% in TTM. However, the revenue growth from 2024 to TTM is 7%, a slowdown compared to previous years, which could suggest market saturation or increased competition. EBIT and EBITDA margins are healthy at 9.8% and 15.5%, respectively, showing robust operational efficiency.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.78, indicating moderate leverage. The return on equity is strong at 22.5% in TTM, reflecting effective use of shareholder funds. However, the equity ratio of 26.1% suggests a reliance on liabilities, which could pose risks if market conditions change.

Cash Flow

Cash flow analysis reveals robust free cash flow, standing at $472 million in TTM, but the growth rate has slightly decreased by 1.7% from the previous period. The operating cash flow to net income ratio is 2.81, indicating strong cash generation relative to accounting profits. However, the free cash flow to net income ratio of 2.58 suggests that not all cash flows are translating into free cash, potentially due to reinvestments or capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.33B	2.29B	2.33B	1.38B	774.42M
Gross Profit	629.14M	1.06B	974.60M	554.42M	345.98M
EBITDA	210.45M	589.88M	513.88M	192.28M	204.54M
Net Income	102.66M	438.94M	397.36M	145.45M	134.00M
Balance Sheet
Total Assets	3.25B	3.38B	3.08B	2.08B	1.20B
Cash, Cash Equivalents and Short-Term Investments	1.62B	1.70B	1.61B	1.02B	679.38M
Total Debt	1.31B	1.30B	1.29B	1.04B	330.87M
Total Liabilities	2.42B	2.40B	2.26B	1.65B	716.11M
Stockholders Equity	833.02M	983.62M	825.57M	430.17M	483.99M
Cash Flow
Free Cash Flow	480.09M	586.38M	698.37M	299.52M	195.78M
Operating Cash Flow	513.69M	696.78M	744.82M	352.03M	216.33M
Investing Cash Flow	128.27M	-366.36M	-371.91M	-1.22B	-25.57M
Financing Cash Flow	-460.27M	-516.77M	-17.13M	309.41M	191.68M

Enphase Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 34.58 is above the 20-day moving average (MA) of 33.43, below the 50-day MA of 37.62, and below the 200-day MA of 54.60, indicating a neutral trend. The MACD of -0.76 indicates Negative momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 69.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENPH.

Enphase Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSLR	79 Outperform	$22.62B	17.65	15.92%	―	15.39%	4.28%
NXT	78 Outperform	$9.85B	18.02	37.20%	―	13.26%	3.08%
ENPH	73 Outperform	$4.74B	28.11	19.79%	―	4.39%	37.70%
ARRY	64 Neutral	$1.36B	―	-44.13%	―	6.36%	-1683.09%
RUN	57 Neutral	$3.57B	―	-61.90%	―	3.27%	-81.63%
Sector *	55 Neutral	$296.27M	4.23	-5.17%	2.67%	9.75%	-67.81%
SEDG	51 Neutral	$1.90B	―	-131.02%	―	-36.07%	-233.14%

Enphase Energy Corporate Events

Enphase Energy Retains T.J. Rodgers on Board

On June 30, 2025, Enphase Energy announced that its Board of Directors voted to retain Thurman John (T.J.) Rodgers as a board member, despite him receiving less than 50% of the votes at the 2025 stockholder meeting. The decision was influenced by proxy voting guidelines and Rodgers’ significant contributions to the company since 2017, including his expertise in semiconductors and solar energy. The board believes his continued service is crucial for Enphase’s innovation and global growth, ensuring value for stakeholders.