Enphase Energy (ENPH) AI Stock Analysis

• Market Cap: $4.70B
• Dividend Yield: N/A
• Average Volume (3M): 8.99M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 1.00
• Revenue Growth: -22.15%
• EPS Growth: -45.22%
• Country: US
• Employees: 2,781
• Sector: Technology
• Sector Strength: 83
• Industry: Solar
• EPS (TTM): 0.68
• Shares Outstanding: 131,207,020
• 10 Day Avg. Volume: 10,264,109
• 30 Day Avg. Volume: 8,988,165
• PEG Ratio: 0.53
• Price to Book (P/B): 43.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 51.35
• Enterprise Value/Market Cap: 7.80
• Enterprise Value/Revenue: 6.76
• Enterprise Value/Gross Profit: 53.79
• Enterprise Value/Ebitda: 42.10
• 1Y Price Target: $47.83
• Price Target Upside: 33.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 25

• Rating: 61 Neutral
• Price Target: $37.00 ▲(3.21%Upside)

Enphase Energy's overall stock score reflects strong financial health with robust profitability and a stable balance sheet. However, bearish technical indicators and high valuation pose risks. The company's strategic innovations and market position in the solar industry contribute positively, but challenges like slowing growth and market saturation must be addressed.

Positive Factors

Geographic Expansion

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

Product Innovation

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

Negative Factors

Competitive Pressure

The company is facing increased competition and a shift to lower-margin products, which is expected to lower its gross margins.

Market Share Loss

ENPH's market share has eroded due to shifting market dynamics, particularly in the U.S., with trends towards TPO and NEM 3.0.

Tariff Challenges

ENPH's gross margins are expected to face significant headwinds from tariffs, impacting profitability and complicating demand outlook.

Tax Policy Impact

The release of the House Ways and Means Committee tax plan will eliminate the Section 25D Residential Clean Energy Credit, impacting ENPH disproportionately and shrinking the demand for U.S. residential solar.

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 shows strong financial health with high profitability and efficient cash generation, despite a slowdown in revenue growth and moderate leverage risks.

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
	EBIT
138.31M	77.29M	445.74M	448.26M	215.83M	186.44M
	EBITDA
268.47M	210.45M	589.88M	513.88M	192.28M	204.54M
	Net Income Common Stockholders
148.49M	102.66M	438.94M	397.36M	145.45M	134.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.47B	1.62B	1.70B	1.61B	1.02B	679.38M
	Total Assets
3.11B	3.25B	3.38B	3.08B	2.08B	1.20B
	Total Debt
1.21B	1.31B	1.30B	1.29B	1.04B	330.87M
	Net Debt
857.97M	939.09M	1.01B	817.11M	918.33M	-348.51M
	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: Negative
• Last Price: 35.85
• 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 35.85 is below the 20-day moving average (MA) of 41.26, below the 50-day MA of 45.66, and below the 200-day MA of 68.78, indicating a bearish trend. The MACD of -2.04 indicates Positive momentum. The RSI at 35.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.43 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
NXT	76 Outperform	$8.43B	16.63	39.33%	―	21.46%	123.22%
FSLR	70 Outperform	$15.55B	12.33	16.77%	―	19.42%	23.19%
ARRY	63 Neutral	$1.15B	―	-49.11%	―	-21.31%	-593.57%
Sector *	62 Neutral	$11.91B	9.99	-7.22%	4.96%	7.31%	-8.91%
ENPH	61 Neutral	$4.70B	33.35	17.13%	―	-22.15%	-45.22%
SEDG	49 Neutral	$1.00B	―	-121.50%	―	-57.89%	-559.87%
RUN	42 Neutral	$1.42B	―	-69.47%	―	-2.08%	-80.64%

Enphase Energy Corporate Events

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.