Analysts rate Enphase Energy Inc. (ENPH:NSD) with an Strong Buy rating and a $259 target

STA Research
by: STA Research
Enphase Energy Inc

Based on the Enphase Energy stock forecast from 17 analysts, the average analyst Enphase stock price target is USD 259.77 over the next 12 months. Enphase Energy Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Enphase stock forecast is Slightly Bullish, which is based on 9 positive signals and 5 negative signals. At the last closing, Enphase stock price was USD 292.82Enphase stock price has changed by +7.05% over the past week, -8.09% over the past month and +73.54% over the last year.

About Enphase Energy Inc. (ENPH:NSD):

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level, and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It also offers AC battery storage systems and Enlighten cloud-based monitoring service, as well as other accessories. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.

 

What we like:

High market capitalization:

ENPH stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

Enphase energy stock had positive total cash flow in the most recent four quarters.

Positive free cash flow:

Enphase energy stock had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

ENPH stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth:

ENPH stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio:

ENPH stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Overpriced compared to earnings:

Enphase stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

Enphase stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

Enphase stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the Enphase stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

Enphase energy stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

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