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Enphase Energy (ENPH)
NASDAQ:ENPH
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Enphase Energy
(NASDAQ:ENPH)
Rating:72Outperform
Price Target:
$41.00
▲(8.96% Upside)
Positive Factors
Product Innovation
Continued innovation in battery systems enhances product offerings, supporting long-term growth and competitive positioning in the solar market.
Global Expansion
Expanding international presence and production capabilities strengthen market position and diversify revenue streams, reducing reliance on any single market.
New Product Launch
The launch of the IQ EV Charger 2 aligns with growing EV adoption, offering integration with solar systems, enhancing Enphase's product ecosystem and market appeal.
Negative Factors
Tariff Impacts
Tariff impacts can erode margins, affecting profitability and potentially leading to higher costs for consumers, challenging competitive pricing strategies.
Market TAM Reduction
A significant reduction in market size due to tax credit changes could limit growth opportunities, requiring strategic adjustments to maintain revenue growth.
Free Cash Flow Challenges
Declining free cash flow growth may impact the company's ability to invest in new projects and innovations, potentially constraining future expansion and profitability.
Enphase Energy (ENPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.88B
Dividend YieldN/A
Average Volume (3M)7.68M
Price to Earnings (P/E)29.4
Beta (1Y)1.00
Revenue Growth4.39%
EPS Growth37.70%
CountryUS
Employees2,781
SectorTechnology
Sector Strength85
IndustrySolar
Share Statistics
EPS (TTM)0.69
Shares Outstanding130,750,780
10 Day Avg. Volume6,347,962
30 Day Avg. Volume7,677,447
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue3.42
Enterprise Value/Gross Profit7.12
Enterprise Value/Ebitda17.02
Forecast
1Y Price Target
$39.55Price Target Upside5.10% Upside
Rating ConsensusHold
Number of Analyst Covering22
Enphase Energy Business Overview & Revenue Model
Company DescriptionEnphase 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 MoneyEnphase 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 Key Performance Indicators (KPIs)
Any
Microinverters Shipped
Tracks the number of microinverters delivered, reflecting the adoption of solar technology and the company's market penetration in the solar energy sector.
Tracks the number of microinverters delivered, reflecting the adoption of solar technology and the company's market penetration in the solar energy sector.
Data provided by:
Main Street Data
Main Street DataEnphase Energy Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The call highlighted Enphase's strong financial performance and strategic initiatives in global expansion and product innovation. However, challenges such as tariff impacts and inventory management, along with anticipated market contraction, were also discussed.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Enphase reported quarterly revenue of $363.2 million, with a gross margin of 49% and operating income as a percentage of revenue at 27% on a non-GAAP basis.
Innovation and Product Development
Launched fourth-generation battery systems with a 30% increase in energy density and began development on the fifth generation, expected to deliver a 50% increase in energy density.
Global Expansion
Reported revenue growth in Europe by 11% and increased domestic battery production in Q2. The company is expanding its market presence in Australia, India, and Japan.
Customer Satisfaction
Increased global customer service NPS to 79% in Q2 from 77% in Q1, with average call wait time decreased to 1.8 minutes.
Negative Updates
Tariff Impacts
Enphase absorbed a 2% gross margin impact due to tariffs, with expectations of 3% to 5% impact in Q3 due to new tariff increases.
Elevated Microinverter Inventory
Exiting Q2, microinverter channel inventory was slightly elevated beyond the desired 8-10 weeks.
Projected Market TAM Reduction
Anticipating a 20% reduction in the U.S. total addressable market for solar installations in 2026 due to the expiration of the 25D homeowner tax credit.
Company Guidance
During the Enphase Energy's Second Quarter 2025 Financial Results Call, the company provided guidance for the third quarter of 2025, forecasting revenue between $330 million and $370 million, with anticipated shipments of 190 to 210 megawatt hours of IQ Batteries. Enphase expects a GAAP gross margin of 41% to 44%, incorporating a 3% to 5% impact from reciprocal tariffs, and a non-GAAP gross margin between 43% and 46% when considering the net IRA benefit. The company plans to ship approximately 1.2 million microinverters from the U.S., with an estimated net IRA benefit of $34 million to $38 million. Operating expenses are projected to range from $130 million to $134 million on a GAAP basis and $78 million to $82 million on a non-GAAP basis. Enphase is also prepared to address potential market challenges in 2026, such as a 20% TAM reduction due to changes in the 25D tax credit, by focusing on expanding lease financing to the long tail, reducing installation costs through product innovations, and lowering lead generation costs.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.83
Very Positive
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.78
Positive
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.75
Positive
| 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
Neutral
37.63
Price Trends
36.85
Positive
40.23
Negative
52.27
Negative
Market Momentum
0.51
Negative
53.07
Neutral
41.88
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 37.63 is above the 20-day moving average (MA) of 37.17, above the 50-day MA of 36.85, and below the 200-day MA of 52.27, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 53.07 is Neutral, neither overbought nor oversold. The STOCH value of 41.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.88B | 29.40 | 19.79% | ― | 4.39% | 37.70% | |
67 Neutral | $1.16B | 54.47 | 3.77% | ― | -11.95% | -7.87% | |
64 Neutral | $1.20B | ― | -44.13% | ― | 6.36% | -1683.09% | |
61 Neutral | $36.80B | 12.38 | -10.20% | 1.85% | 8.54% | -7.31% | |
57 Neutral | $3.69B | ― | -61.90% | ― | 3.27% | -81.63% | |
53 Neutral | $1.18B | 118.10 | -9.49% | 11.00% | -30.26% | -156.69% | |
51 Neutral | $1.75B | ― | -131.02% | ― | -36.07% | -233.14% |
* Technology Sector Average
Performance Comparison
ENPH
Enphase Energy
37.63
-73.86
-66.25%
JKS
JinkoSolar
25.09
6.68
36.28%
SEDG
SolarEdge Technologies
28.97
7.02
31.98%
RUN
Sunrun
16.06
-3.28
-16.96%
ARRY
Array Technologies
7.67
0.69
9.89%
SHLS
Shoals Technologies Group
6.88
0.58
9.21%
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.