ENPHEnphase Energy, Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.3×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 15% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ENPH?
Enphase Energy, Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 1.7 points above what the capital costs: growth creates value
- Operating margin
- 8.3%
Operating margin · Solar median 5.5% · 12 months to Q2 2026
- Cash conversion
- 2.26×
Cash conversion · 2.85× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.07%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 24% |
| FY2021 | 16% |
| FY2022 | 19% |
| FY2023 | 19% |
| FY2024 | 5.8% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q2 2026
- 47%
- Operating margin12 months to Q2 2026
- 8.3%
- Net margin12 months to Q2 2026
- 10%
- Free cash flow margin
- 11%
- R&D as % of revenue
- 14%
- Revenue, trailing twelve months
- $1.33B
- Free cash flow, trailing twelve months
- $153M
- Net income, trailing twelve months
- $134M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from ENPH and who it buys from, as the companies report it.
- Net revenues, largest customer39%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; ENPH’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.