Enphase Energy Inc. Common Stock (ENPH)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary when a former highflier trades at a premium to a conservative appraisal. Enphase designs microinverters and home energy systems. The technology and software may create some customer stickiness, but solar is cyclical and policy-sensitive; I cannot call the moat wide. The filed numbers show a business that has shrunk. In fiscal 2023, the year ended 2023-12-31, revenue was $2.3B and net income $438.9M. In fiscal 2024, ended 2024-12-31, revenue fell to $1.3B and net income to $102.7M. Fiscal 2025, ended 2025-12-31, recovered to $1.5B of revenue and $172.1M of net income, but still far below the peak. Fiscal Q1 2026, quarter ended 2026-03-31, had revenue $282.9M and a net loss of $7.4M. FairStock's Lynch category is slow grower, based on 5.1% yearly profit growth over five years and 13.7% revenue growth. Financial health is mixed. Debt/equity is 0.52, Piotroski 6/9, Altman Z 2.10. Free cash flow is $152.6M, a 3.6% FCF yield. FairStock's ROE is 13.00%, but its ROCE is only 2.38%, which tells me capital returns are weak. At the 2026-10-13 close of $32.03, FairStock's P/E is 31.71 and P/B is 3.58. The Graham Number is $14.25, meaning the price is about 124.77% above that conservative anchor. EV/EBITDA is 17.23, and the overall FairStock score is 32/100. I would want a much larger margin of safety before calling this cheap. The price already assumes a strong recovery that the filed record has not yet shown.

In plain English: Enphase Energy makes microinverters and home energy equipment for solar power systems. The business still earns money and has modest debt, but sales and profits have fallen sharply from their earlier peak. At $32.03 on 2026-10-13, the stock looks expensive compared with what its recent profits and assets suggest it is worth.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer