Enphase Energy (ENPH) AI Stock Analysis

• Market Cap: $4.23B
• Dividend Yield: N/A
• Average Volume (3M): 9.62M
• Price to Earnings (P/E): 25.5
• Beta (1Y): 1.00
• Revenue Growth: 4.39%
• EPS Growth: 37.70%
• Country: US
• Employees: 2,781
• Sector: Technology
• Sector Strength: 95
• Industry: Solar
• EPS (TTM): 0.69
• Shares Outstanding: 130,750,780
• 10 Day Avg. Volume: 11,022,184
• 30 Day Avg. Volume: 9,617,554
• PEG Ratio: 1.52
• Price to Book (P/B): 5.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.83
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 7.94
• Enterprise Value/Ebitda: 6.08
• 1Y Price Target: $40.99
• Price Target Upside: 30.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 24

• Rating: 69 Neutral
• Price Target: $34.00 ▲(8.18%Upside)

Enphase Energy's strong financial performance and positive earnings call guidance are offset by bearish technical indicators and moderate valuation. While the company is innovating and maintaining solid margins, regulatory challenges and potential market demand declines pose risks.

Positive Factors

Financing Strategy

Enphase is developing a new third-party ownership financing strategy in partnership with the TPO channel, targeting an underserved market.

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.

Negative Factors

Market Share

ENPH's market share has already eroded due to shifting market dynamics in the U.S., impacting demand for residential solar.

Revenue Guidance

3Q revenue guidance of $330-$370MM missed consensus estimates of $372MM.

Tax Credit Changes

Elimination of the 25D credit impacts ENPH disproportionately, further contributing to a loss of market share.

Enphase Energy Business Overview & Revenue Model

Company Description

Enphase Energy, Inc. is a leading energy technology company that specializes in the design and manufacture of software-driven home energy solutions. The company is primarily known for its microinverter systems, which convert solar energy to usable electricity at the individual solar module level in residential and commercial solar photovoltaic systems. Enphase Energy operates within the renewable energy sector and aims to provide innovative, high-quality products that enhance energy efficiency and reliability for its customers worldwide.

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 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: 31.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 31.43 is below the 20-day moving average (MA) of 38.29, below the 50-day MA of 39.95, and below the 200-day MA of 58.41, indicating a bearish trend. The MACD of -2.38 indicates Positive momentum. The RSI at 30.92 is Neutral, neither overbought nor oversold. The STOCH value of 3.68 is Positive, 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	80 Outperform	$18.74B	14.85	15.92%	―	15.39%	4.28%
NXT	76 Outperform	$8.61B	15.88	37.20%	―	21.46%	123.22%
ENPH	69 Neutral	$4.23B	25.49	19.79%	―	4.39%	37.70%
ARRY	57 Neutral	$924.43M	―	-49.11%	―	-21.31%	-593.57%
SEDG	55 Neutral	$1.51B	―	-121.50%	―	-57.89%	-559.87%
RUN	55 Neutral	$2.34B	―	-69.47%	―	-2.08%	-80.64%
Sector *	50 Neutral	C$3.12B	5.31	-49.27%	9.09%	2.78%	-10.97%

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.