Fact based stock research
Enphase Energy (NasdaqGM:ENPH)

US29355A1079

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Enphase Energy stock research in summary

enphase.com

ANALYSIS: With an Obermatt Combined Rank of 15 (worse than 85% compared with investment alternatives), Enphase Energy (Semiconductor Equipment, USA) shares have lower financial characteristics compared with similar stocks. Shares of Enphase Energy are low in value (priced high) with a consolidated Value Rank of 17 (worse than 83% of alternatives), show below-average growth (Growth Rank of 49), and are riskily financed (Safety Rank of 43), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 15, is a sell recommendation based on Enphase Energy's financial characteristics. As the company Enphase Energy's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 17), low growth (Obermatt Growth Rank of 49), and risky financing practices (Obermatt Safety Rank of 43), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	17
Growth Rank	49
Safety Rank	43
Combined Rank	15

Country	USA
Industry	Semiconductor Equipment
Index	Artificial Intelligence, Solar Tech, NASDAQ, S&P MIDCAP
Size class	Large

20-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Enphase Energy

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	9	7	17	17
GROWTH
GROWTH	75	7	49	49
SAFETY
SAFETY	31	56	43	43
SENTIMENT
SENTIMENT	28	31	26	^new
360° VIEW
360° VIEW	7	7	18	^new

Most recent update of the stock research: 20-Feb-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Enphase Energy is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	9	7	17	17
GROWTH
GROWTH	75	7	49	49
SAFETY
SAFETY	31	56	43	43
COMBINED
COMBINED	21	4	15	15

Last update of combined financial performance: 20-Feb-2025. Stock analysis on combined financial performance: The higher the rank of Enphase Energy the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 17 (worse than 83% compared with alternatives), Enphase Energy shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Enphase Energy. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 63, which means that the stock price compared with what market professionals expect for future profits is lower than for 63% of comparable companies, indicating a good value concerning Enphase Energy's profit levels. But Price-to-Sales is 30 which means that the stock price compared with what market professionals expect for future profits is higher than for 70% of comparable companies, indicating a low value concerning Enphase Energy's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 14 and for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 17, is a sell recommendation based on Enphase Energy's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Enphase Energy is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	19	19	30	30
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	20	33	63	63
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	3	14	14
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	9	7	17	17

Last update of Value Rank: 20-Feb-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Enphase Energy; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), Enphase Energy shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Enphase Energy. Sales Growth has a value of 57 which means that currently professionals expect the company to grow more than 57% of its competitors. Profit Growth with a value of 63 and Capital Growth with a rank of 74 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 11, which means that stock returns have recently been below 89% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 49, is a hold recommendation for growth and momentum investors. Enphase Energy has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Enphase Energy, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	94	1	57	57
PROFIT GROWTH
PROFIT GROWTH	69	60	63	63
CAPITAL GROWTH
CAPITAL GROWTH	56	11	74	74
STOCK RETURNS
STOCK RETURNS	19	7	11	11
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	75	7	49	49

Last update of Growth Rank: 20-Feb-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Enphase Energy.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 43 (better than 43% compared with alternatives), the company Enphase Energy has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Enphase Energy is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Enphase Energy. Refinancing is at 63, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 63% of its competitors. Liquidity is also good at 66, meaning the company generates more profit to service its debt than 66% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 9, which means the company has an above-average debt-to-equity ratio. It has more debt than 91% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 43 (worse than 57% compared with alternatives), Enphase Energy has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Enphase Energy could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Enphase Energy and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	20	14	9	9
REFINANCING
REFINANCING	31	37	63	63
LIQUIDITY
LIQUIDITY	57	95	66	66
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	31	56	43	43

Last update of Safety Rank: 20-Feb-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Enphase Energy and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	26	19	^new
OPINIONS CHANGE
OPINIONS CHANGE	49	46	19	^new
PRO HOLDINGS
PRO HOLDINGS	24	63	74	^new
MARKET PULSE
MARKET PULSE	40	46	23	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	28	31	26	^new

Last update of Sentiment Rank: 20-Feb-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Enphase Energy.
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