Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Enphase Energy, Inc.

ENPH · Nasdaq · Technology

Fundamental quality

REASONABLE

67

out of 100

Enphase Energy, Inc. earns a fundamental-quality score of 67 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its financial strength (net debt 0.42× EBITDA). Its weakest area is its growth (revenue +11.9%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Enphase Energy makes microinverters for residential solar panels: the device that converts each panel's current into usable home electricity, plus batteries and management software. Its fate is tied to rooftop solar, a market as promising as it is volatile.

What will shape its future

  • Interest rates: most solar installations are financed, and expensive credit freezes them.
  • Regulatory and subsidy changes, able to sink or spike demand from one year to the next.
  • Margins above a typical hardware maker's — the jewel to defend against competition.

Breakdown by area

I.Growth
48

EPS growth: 0.1% · Revenue growth: 11.9%

II.Profitability
67

Net margin: 9.6% · ROE: 12.2% · ROIC: 7.6%

III.Financial health
85

Net debt/EBITDA: 0.42x · FCF: 10.4%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 38%
ROEbeats 37%
Growthbeats 43%
Cash generationbeats 20%
Less debtbeats 57%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Enphase Energy, Inc. strengths

  • Revenue growing (11.9% annualized).
  • Solid net margin (9.6%): the business is clearly profitable.
  • Positive free cash flow year after year, a self-funding business.
  • Low leverage (net debt of 0.42× EBITDA).

Enphase Energy, Inc. risks and weaknesses

  • Shrinking margins: net margin has fallen from 17% to 12% in recent years.
  • Its net debt has grown over the period.

Enphase Energy, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020774134196-349
20211,382145300918
20222,331397698817
20232,2914395861,005
20241,330103480933
20251,47317296730

Between 2020 and 2025, revenue went from $774M to $1,473M (+90%) and net income went from $134M to $172M (+28%). Meanwhile, its margins have narrowed (from 17% to 12%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue-20.6%
  • Net income-124.9%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Enphase Energy, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Enphase Energy, Inc. a good company to invest in?

In terms of business quality, Enphase Energy, Inc. scores 67 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Enphase Energy, Inc. a profitable company?

Enphase Energy, Inc. is profitable, with a net margin of 9.6%, though a thin one.

Does Enphase Energy, Inc. have a lot of debt?

Not particularly. Its net debt is 0.42 times its EBITDA, a low level.

Is Enphase Energy, Inc. growing?

Its revenue has grown 11.9% annualized in recent years and its earnings per share 0.1%.

Does Enphase Energy, Inc. generate cash?

Yes. It converts about 10.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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