Enphase Energy (ENPH) AI Stock Analysis

• Market Cap: $5.64B
• Dividend Yield: N/A
• Average Volume (3M): 8.90M
• Price to Earnings (P/E): 38.9
• Beta (1Y): 1.04
• Revenue Growth: -22.15%
• EPS Growth: -45.22%
• Country: US
• Employees: 2,781
• Sector: Technology
• Sector Strength: 90
• Industry: Solar
• EPS (TTM): 0.68
• Shares Outstanding: 131,207,020
• 10 Day Avg. Volume: 8,067,119
• 30 Day Avg. Volume: 8,901,693
• PEG Ratio: 0.69
• Price to Book (P/B): 5.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.96
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 8.16
• Enterprise Value/Ebitda: 6.38
• 1Y Price Target: $45.40
• Price Target Upside: 8.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 26

• Rating: 71 Outperform
• Price Target: $45.00 ▲(7.50%Upside)

Enphase Energy's overall score reflects its strong financial health and innovative product launches, tempered by valuation concerns and neutral technical indicators. The earnings call provided a balanced view, highlighting strategic initiatives amid challenges like tariff impacts and regional revenue declines. Investors should note the moderate leverage and focus on future product and market expansion.

Positive Factors

Expansion and Market Entry

ENPH anticipates continued improvement tied to the launch of the fourth gen battery, IQ9 in Q4, and new markets like balcony solar and Japan.

Product Development

ENPH is expected to introduce the IQ9 microinverter with European-sourced GaN bidirectional switches, resulting in 10% more power transfer and a 10% lower cost per watt.

Revenue Growth

Europe benefitted from the release of the IQ Battery 5P FlexPhase in Germany despite a still-challenging demand environment in the region, pushing revenues approximately 7% higher.

Negative Factors

Market Share Loss

Enphase's U.S. residential inverter share decreased for the fifth consecutive quarter with Tesla gaining share attributable to its PW3 ramp.

Regulatory Changes

The release of the House Ways and Means Committee tax plan, if adopted, will eliminate the Section 25D Residential Clean Energy Credit for homeowners who take loans or pay cash for their residential solar and battery systems.

Tariff Impact

ENPH's gross margins are expected to face a significant impact from tariffs in the upcoming quarters.

Enphase Energy Business Overview & Revenue Model

Company Description

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level, and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It also offers AC battery storage systems; Envoy communications gateway; and Enlighten cloud-based monitoring service, as well as other accessories. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.

How the Company Makes Money

Enphase Energy makes money primarily through the sale of its microinverter systems, which are a crucial component of solar energy installations. These systems convert direct current (DC) generated by solar panels into alternating current (AC) used by home appliances and the electrical grid. The company also generates revenue from its energy management technology solutions, such as the Enphase Envoy communications gateway and Enlighten cloud-based monitoring software, which offer real-time data analytics and system performance monitoring. Additionally, Enphase Energy has expanded its portfolio to include battery storage solutions, providing customers with integrated home energy systems that enhance energy independence and grid resilience. Key revenue streams include direct sales to solar distributors, installers, and strategic partnerships with solar module manufacturers and energy service providers. The company's earnings are significantly influenced by the global demand for renewable energy solutions and the growth of the solar market.

Enphase Energy Financial Statement Overview

Summary

Enphase Energy exhibits strong financial performance with solid profitability and efficient cash generation. The company's financial health is underscored by strong margins and a stable balance sheet, although growth rates have slowed, potentially due to market saturation or increased competition. Risks include moderate leverage and potential market challenges impacting 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.42B	1.33B	2.29B	2.33B	1.38B	774.42M
Gross Profit	681.87M	629.14M	1.06B	974.60M	554.42M	345.98M
EBITDA	268.47M	210.45M	589.88M	513.88M	192.28M	204.54M
Net Income	148.49M	102.66M	438.94M	397.36M	145.45M	134.00M
Balance Sheet
Total Assets	3.11B	3.25B	3.38B	3.08B	2.08B	1.20B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.62B	1.70B	1.61B	1.02B	679.38M
Total Debt	1.21B	1.31B	1.30B	1.29B	1.04B	330.87M
Total Liabilities	2.30B	2.42B	2.40B	2.26B	1.65B	716.11M
Stockholders Equity	810.70M	833.02M	983.62M	825.57M	430.17M	483.99M
Cash Flow
Free Cash Flow	472.06M	480.09M	586.38M	698.37M	299.52M	195.78M
Operating Cash Flow	512.91M	513.69M	696.78M	744.82M	352.03M	216.33M
Investing Cash Flow	223.59M	128.27M	-366.36M	-371.91M	-1.22B	-25.57M
Financing Cash Flow	-573.59M	-460.27M	-516.77M	-17.13M	309.41M	191.68M

Enphase Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 41.86
• 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 Neutral. The current price of 41.86 is above the 20-day moving average (MA) of 40.67, below the 50-day MA of 42.98, and below the 200-day MA of 63.82, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 75.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ENPH.

Enphase Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSLR	78 Outperform	$17.70B	13.81	16.77%	―	19.42%	23.19%
NXT	76 Outperform	$9.26B	17.81	39.33%	―	21.46%	123.22%
ENPH	71 Outperform	$5.64B	38.94	17.13%	―	-22.15%	-45.22%
Sector *	63 Neutral	$33.92B	6.00	-11.84%	1.85%	5.31%	-18.34%
ARRY	56 Neutral	$1.14B	―	-49.11%	―	-21.31%	-593.57%
RUN	55 Neutral	$2.48B	―	-69.47%	―	-2.08%	-80.64%
SEDG	53 Neutral	$1.63B	―	-121.50%	―	-57.89%	-559.87%

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.

The most recent analyst rating on (ENPH) stock is a Buy with a $123.00 price target. To see the full list of analyst forecasts on Enphase Energy stock, see the ENPH Stock Forecast page.

Enphase Energy Stockholders Approve Key Decisions at Meeting

On May 14, 2025, Enphase Energy held its Annual Meeting of Stockholders, where several key decisions were made. The stockholders approved an amendment to the 2021 Equity Incentive Plan, increasing the number of shares reserved for issuance by 4,000,000. Additionally, Steven J. Gomo and Thurman John Rodgers were elected as directors, although Rodgers did not receive a majority of votes due to concerns about his commitments. The board will review this matter further. The compensation of named executive officers was approved, and Deloitte & Touche LLP was ratified as the independent public accounting firm for 2025.

The most recent analyst rating on (ENPH) stock is a Buy with a $123.00 price target. To see the full list of analyst forecasts on Enphase Energy stock, see the ENPH Stock Forecast page.