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Enphase Energy
(NASDAQ:ENPH)
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Rating:62Neutral
Price Target:
$43.00
▲(17.17% Upside)
Action:Reiterated
Date:08/18/26
ENPH scores as a moderate-quality setup driven mainly by solid financial resilience (profitable, cash-flow positive, and zero debt) and a broadly constructive earnings outlook with margin recovery and improving Europe trends. The score is held back by weaker recent growth (TTM revenue decline), a mixed/soft technical backdrop (below key moving averages with negative MACD), and a relatively high P/E without dividend yield support in the provided data.
Positive Factors
Debt-free balance sheet
A debt-free balance sheet reduces interest and refinancing risk, giving Enphase greater flexibility to fund product development, manufacturing and market expansion through a cyclical solar demand environment.
Negative Factors
Weakening revenue and earnings growth
The contraction in revenue and earnings indicates that Enphase is operating below its prior growth cycle. Sustained weakness could limit operating leverage and make recovery dependent on a broader rebound in solar installations.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A debt-free balance sheet reduces interest and refinancing risk, giving Enphase greater flexibility to fund product development, manufacturing and market expansion through a cyclical solar demand environment.
Read all positive factors
Enphase Energy Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how much sales come from each region so you can see where Enphase is strongest and where growth or risk is concentrated. High dependence on a few markets can mean exposure to local policy changes, tariffs, or slowing installer demand, while diversification signals broader growth opportunities.
Shows how much sales come from each region so you can see where Enphase is strongest and where growth or risk is concentrated. High dependence on a few markets can mean exposure to local policy changes, tariffs, or slowing installer demand, while diversification signals broader growth opportunities.
Data provided by:
The Fly
The FlyEnphase Energy (ENPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.97B
Dividend YieldN/A
Average Volume (3M)5.56M
Price to Earnings (P/E)38.6
Beta (1Y)0.73
Revenue Growth-10.41%
EPS Growth-22.03%
CountryUS
Employees2,872
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)1.02
Shares Outstanding132,144,650
10 Day Avg. Volume3,562,142
30 Day Avg. Volume5,558,846
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)3.87
Price to Sales (P/S)2.85
P/FCF Ratio43.83
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$47.80Price Target Upside30.26% Upside
Rating ConsensusHold
Number of Analyst Covering21
EPS Forecast (FY)1.99
Revenue Forecast (FY)$1.19B
Enphase Energy Business Overview & Revenue Model
Company Description
Enphase Energy, Inc., along with its subsidiaries, is dedicated to developing, manufacturing, and distributing home energy solutions for the global solar photovoltaic industry. Their core offering is a semiconductor-based microinverter, designed t...
How the Company Makes Money
Enphase primarily makes money by selling hardware and related solutions used in distributed (primarily residential) solar-plus-storage systems. Its largest revenue stream is the sale of microinverters (sold as part of Enphase’s IQ series product f...
Enphase Energy Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful progress on profitability, margin recovery, product launches (IQ9, IQ Battery G5, IQV-80, IQSST), strong European demand (+35% revenue sequential) and healthy liquidity ($937.7M cash). Management also secured significant safe‑harbor and PTC positions and advanced financing (PROPEL). Offsetting these positives were continued U.S. residential softness (U.S. revenue -3% sequential; sell-through -34% YoY), channel inventory/matching issues, tariff uncertainty and delayed monetization timing for a large portion of PWT backlog. On balance, the company demonstrated constructive operational and product momentum while acknowledging near‑term headwinds and timing risks.Positive Updates
Quarterly Revenue and Guidance
Reported Q2 revenue of $291.9 million. Q3 guidance $290M–$320M (midpoint ~$305M), representing ~5% growth at the midpoint; management >70% booked to midpoint and expects global sell-through to rise ~10% in Q3 vs Q2.
Negative Updates
US Revenue Softness and Channel Dynamics
U.S. revenue declined 3% sequentially in Q2 and U.S. sell-through decreased ~7% sequentially. Management attributed much of the U.S. sequential decline to under‑shipping into the channel; Q2 sell-through fell ~34% YoY.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue and Guidance
Reported Q2 revenue of $291.9 million. Q3 guidance $290M–$320M (midpoint ~$305M), representing ~5% growth at the midpoint; management >70% booked to midpoint and expects global sell-through to rise ~10% in Q3 vs Q2.
Read all positive updates
Company Guidance
Enphase guided Q3 revenue of $290M–$320M (≈5% growth at the midpoint), including $75M of safe‑harbor revenue, and said it is over 70% booked to the midpoint; the company expects global sell‑through to rise ~10% sequentially while assuming modest under‑shipment (roughly $15M) versus sell‑through. Q3 battery shipments are forecast at 130–150 MWh, and management expects to recognize $136.2M of safe‑harbor revenue for the remainder of 2026 ($75M in Q3 and $61.2M in Q4). Profitability guidance: GAAP gross margin 42%–45% and non‑GAAP gross margin 44%–47% (each including ~2 percentage points of reciprocal tariff impact). Expense guidance: GAAP operating expenses $120M–$124M (including ~ $44M of stock‑based comp, acquisition amortization, restructuring and impairments) and non‑GAAP operating expenses $76M–$80M.Enphase Energy Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.47B | 1.33B | 2.29B | 2.33B | 1.38B |
| Gross Profit | 623.68M | 687.00M | 629.14M | 1.06B | 974.60M | 554.42M |
| EBITDA | 177.90M | 289.98M | 210.45M | 596.69M | 520.26M | 196.93M |
| Net Income | 134.02M | 172.13M | 102.66M | 438.94M | 397.36M | 145.45M |
Balance Sheet | ||||||
| Total Assets | 2.92B | 3.51B | 3.25B | 3.38B | 3.08B | 2.08B |
| Cash, Cash Equivalents and Short-Term Investments | 967.06M | 1.51B | 1.62B | 1.70B | 1.61B | 1.02B |
| Total Debt | 613.37M | 1.24B | 1.33B | 1.32B | 1.31B | 1.05B |
| Total Liabilities | 1.74B | 2.42B | 2.42B | 2.40B | 2.26B | 1.65B |
| Stockholders Equity | 1.18B | 1.09B | 833.02M | 983.62M | 825.57M | 430.17M |
Cash Flow | ||||||
| Free Cash Flow | 152.63M | 95.90M | 480.09M | 586.38M | 698.37M | 299.52M |
| Operating Cash Flow | 204.69M | 136.54M | 513.69M | 696.78M | 744.82M | 352.03M |
| Investing Cash Flow | 611.76M | 106.79M | 128.27M | -366.36M | -371.91M | -1.22B |
| Financing Cash Flow | -649.45M | -241.62M | -460.27M | -516.77M | -17.13M | 309.41M |
Enphase Energy Technical Analysis
Negative
36.70
Price Trends
43.65
Negative
43.62
Negative
40.32
Negative
Market Momentum
-1.02
Negative
46.18
Neutral
18.90
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 36.7 is below the 20-day moving average (MA) of 39.12, below the 50-day MA of 43.65, and below the 200-day MA of 40.32, indicating a neutral trend. The MACD of -1.02 indicates Negative momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 18.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $4.97B | 38.60 | 12.28% | ― | -10.41% | -22.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $739.24M | -5.03 | -47.02% | ― | 1.18% | 44.68% | |
49 Neutral | $1.83B | -7.23 | -62.50% | ― | 37.91% | 84.96% | |
49 Neutral | $2.23B | 5.73 | 2.46% | ― | 63.23% | ― | |
46 Neutral | $1.29B | 42.35 | 5.29% | ― | 46.88% | 50.24% | |
26 Underperform | $824.75M | -0.42 | -17.23% | 18.78% | -22.00% | -92.74% |
* Technology Sector Average
ENPH
Enphase Energy
38.36
3.78
10.93%
JKS
JinkoSolar
15.87
-5.01
-23.98%
SEDG
SolarEdge Technologies
30.90
0.69
2.28%
RUN
Sunrun
9.36
-5.38
-36.50%
ARRY
Array Technologies
4.71
-3.68
-43.86%
SHLS
Shoals Technologies Group
7.38
1.62
28.04%
Enphase Energy Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Enphase Energy Announces Governance Updates and Board Changes
Neutral
Aug 10, 2026
On Aug. 10, 2026, Enphase Energy’s board of directors, excluding director Benjamin Kortlang, unanimously voted to retain him on the board following a review prompted by the 2026 annual meeting vote results. The board emphasized Kortlang̵...
Business Operations and StrategyPrivate Placements and Financing
Enphase Monetizes U.S. Manufacturing Tax Credits for Liquidity
Positive
Jun 18, 2026
On June 15, 2026, Enphase Energy, Inc. entered into a Tax Credit Transfer Agreement with a leading financial institution to sell up to $150 million in advanced manufacturing production tax credits generated from eligible components produced and so...
Business Operations and StrategyExecutive/Board Changes
Enphase Energy Adds Former NVIDIA Executive to Board
Positive
Jun 15, 2026
Enphase Energy, Inc. has expanded its Board of Directors to eight members, effective June 11, 2026, and appointed former NVIDIA executive Shanker Trivedi to fill a new Class I seat, with his term running until the 2028 annual shareholder meeting, ...
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.