We are maintaining our $85 fair value estimate for no-moat Enphase following first-quarter results. We are lowering near-term revenue estimates, but this is offset by higher gross margin assumptions on new products. Enphase continues to be near the top of our clean energy watchlist, but we await a more attractive entry point.
Enphase commands industry-leading gross margins and ROICs based on its high-tech product offering.
Enphase’s end markets are concentrated around the U.S. and residential end markets.
|
Metric
|
ENPH
|
GNRC
|
SEDG
|
|---|---|---|---|
Price/Earnings (Normalized) | 38.66 | 26.37 | 12.10 |
Price/Book Value | 19.26 | 3.81 | 1.24 |
Price/Sales | 10.06 | 2.29 | 1.24 |
Price/Cash Flow | 34.02 | 21.70 | — |
|
Metric
|
ENPH
|
GNRC
|
SEDG
|
|---|---|---|---|
Quick Ratio | 4.02 | 0.86 | 1.85 |
Current Ratio | 4.59 | 2.29 | 3.70 |
Interest Coverage | 51.17 | 4.12 | 12.42 |
|
Metric
|
ENPH
|
GNRC
|
SEDG
|
|---|---|---|---|
Return on Assets (Normalized) | 18.18% | 6.73% | −0.77% |
Return on Equity (Normalized) | 64.33% | 14.74% | −1.44% |
Return on Invested Capital (Normalized) | 24.93% | 10.09% | −1.05% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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