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ENPH Enphase Energy, Inc. - Fundamental Analysis

NEUTRAL
ENPH Stock | Fundamental Analysis & Investment Insights
NASDAQ Technology Solar
Current Price
$33.75
Analyst Target
$38.48
+14.0% Upside
52W High
$76.9
52W Low
$25.78

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AI Analysis

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Confidence Score
68%
Analysis Accuracy
ENPH exhibits mixed financial health with a weak Piotroski F-Score of 4/9 indicating marginal stability, while the Altman Z-Score of 7740758972.8 suggests negligible bankruptcy risk. The stock trades below the analyst target price of $38.48 and intrinsic value estimate of $43.07, implying potential undervaluation, but this is offset by declining YoY EPS growth (-23.1%) and weak recent earnings beats (2 of last 4 quarters). Profitability remains strong with ROE at 20.30% and improving margins, though high valuation multiples relative to peers and negative insider activity raise caution. The technical rebound in the last month (+14.8%) offers short-term optimism, but long-term performance remains deeply negative over 1Y, 3Y, and 5Y horizons.

Key Strengths

Exceptionally high Altman Z-Score indicates virtually no risk of financial distress
Strong return on equity (ROE) of 20.30%, above sector average of 29.45% but still healthy
Improving profitability with operating margin at 16.43% and gross margin at 31.93%
Significant earnings surprise history, with an average surprise of +39.68% over the last four quarters
Current price of $33.75 is below both analyst target ($38.48) and intrinsic value ($43.07), suggesting upside potential

Key Risks

Low Piotroski F-Score of 4/9 indicates weak financial health and operational instability
Year-over-year EPS decline of 23.1% despite recent Q/Q growth, signaling deteriorating earnings momentum
High debt/equity ratio of 1.24, above sector average of 0.78, increasing financial leverage risk
Negative insider sentiment with $4.57M in insider sales and no buys in the last six months
Poor long-term price performance: -80.4% over 5 years and -52.7% over 1 year, indicating sustained investor skepticism
AI Fair Value Estimate
Based on comprehensive analysis
$40.2
+19.1% above current price

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