Latest Ratios: P/E Ratio 26.7x · EV/EBITDA 21.7x · ROE 17.9%. (2009–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.5B | $4.3B | $9.6B | $18.9B | $38.3B | $26.1B | $24.9B | $3.4B | $471M | $200M | $51M |
| Enterprise Value | $5.3B | $5.1B | $10.6B | $20.0B | $39.1B | $27.1B | $24.6B | $3.3B | $475M | $220M | $67M |
| P/E Ratio → | 26.68 | 24.84 | 91.57 | 42.90 | 95.65 | 179.35 | 184.71 | 21.24 | — | — | — |
| P/S Ratio | 3.09 | 2.93 | 7.23 | 8.27 | 16.41 | 18.91 | 32.16 | 5.51 | 1.49 | 0.70 | 0.16 |
| P/B Ratio | 4.27 | 3.98 | 11.54 | 19.25 | 46.34 | 60.76 | 51.45 | 12.64 | 60.60 | — | 39.25 |
| P/FCF | 47.43 | 45.08 | 20.03 | 32.29 | 54.78 | 87.27 | 127.20 | 27.68 | 39.33 | — | — |
| P/OCF | 33.31 | 31.66 | 18.72 | 27.17 | 51.37 | 74.25 | 115.11 | 24.74 | 29.21 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.46 | 7.95 | 8.71 | 16.77 | 19.59 | 31.73 | 5.28 | 1.50 | 0.77 | 0.21 |
| EV / EBITDA | 21.68 | 20.76 | 66.66 | 38.36 | 77.11 | 109.75 | 120.14 | 28.22 | 42.15 | — | — |
| EV / EBIT | 32.30 | 24.33 | 81.96 | 38.25 | 84.72 | 163.01 | 175.01 | 33.04 | 1023.15 | — | — |
| EV / FCF | — | 53.10 | 22.03 | 34.05 | 55.99 | 90.39 | 125.52 | 26.53 | 39.62 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 46.6% | 46.6% | 47.3% | 46.2% | 41.8% | 40.1% | 44.7% | 35.4% | 29.9% | 19.6% | 18.0% |
| Operating Margin | 11.2% | 11.2% | 5.8% | 19.5% | 19.2% | 15.6% | 24.1% | 16.5% | 0.5% | -13.8% | -19.4% |
| Net Profit Margin | 11.7% | 11.7% | 7.7% | 19.2% | 17.0% | 10.5% | 17.3% | 25.8% | -3.7% | -15.8% | -20.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.9% | 17.9% | 11.3% | 48.5% | 63.3% | 31.8% | 35.4% | 115.1% | -149.5% | — | -315.6% |
| ROA | 5.1% | 5.1% | 3.1% | 13.6% | 15.4% | 8.9% | 14.0% | 30.6% | -4.6% | -27.2% | -41.0% |
| ROIC | 6.8% | 6.8% | 3.0% | 18.2% | 22.2% | 21.3% | 98.2% | 109.4% | 10.5% | -204.3% | -198.3% |
| ROCE | 6.8% | 6.8% | 2.8% | 16.8% | 21.9% | 18.7% | 31.6% | 29.1% | 1.2% | -49.8% | -72.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.14 | 1.14 | 1.60 | 1.34 | 1.59 | 2.45 | 0.72 | 0.40 | 14.12 | — | 26.08 |
| Debt / EBITDA | 5.07 | 5.07 | 8.39 | 2.53 | 2.59 | 4.27 | 1.71 | 0.93 | 9.75 | — | — |
| Net Debt / Equity | — | 0.71 | 1.15 | 1.05 | 1.02 | 2.17 | -0.68 | -0.52 | 0.46 | — | 12.41 |
| Net Debt / EBITDA | 3.14 | 3.14 | 6.06 | 1.98 | 1.66 | 3.79 | -1.61 | -1.22 | 0.31 | — | — |
| Debt / FCF | — | 8.02 | 2.00 | 1.75 | 1.21 | 3.12 | -1.68 | -1.15 | 0.30 | — | — |
| Interest Coverage | 46.30 | 46.30 | 14.49 | 59.05 | 48.90 | 3.68 | 6.69 | 10.30 | 0.05 | -4.68 | -22.80 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.07 | 2.07 | 3.53 | 4.59 | 3.55 | 3.33 | 1.75 | 2.51 | 1.51 | 1.42 | 1.42 |
| Quick Ratio | 1.84 | 1.84 | 3.28 | 4.19 | 3.31 | 3.16 | 1.67 | 2.35 | 1.40 | 1.14 | 1.04 |
| Cash Ratio | 1.20 | 1.20 | 2.46 | 3.18 | 2.53 | 2.31 | 1.27 | 1.26 | 0.72 | 0.32 | 0.21 |
| Asset Turnover | — | 0.42 | 0.41 | 0.68 | 0.76 | 0.66 | 0.65 | 0.88 | 0.93 | 1.69 | 1.97 |
| Inventory Turnover | 2.73 | 2.73 | 4.25 | 5.77 | 9.06 | 11.12 | 10.26 | 12.57 | 13.63 | 8.85 | 8.28 |
| Days Sales Outstanding | — | 65.88 | 61.39 | 71.06 | 69.04 | 94.32 | 94.28 | 85.01 | 91.13 | 83.35 | 69.04 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 4.0% | 1.1% | 2.3% | 1.0% | 0.6% | 0.5% | 4.7% | — | — | — |
| FCF Yield | 2.1% | 2.2% | 5.0% | 3.1% | 1.8% | 1.1% | 0.8% | 3.6% | 2.5% | — | — |
| Buyback Yield | 2.9% | 3.0% | 4.1% | 2.2% | 0.0% | 1.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.9% | 3.0% | 4.1% | 2.2% | 0.0% | 1.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $135M | $140M | $143M | $144M | $143M | $142M | $132M | $100M | $83M | $51M |
Includes 30+ ratios · 17 years · Updated daily
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Quick answers to the most common questions about buying ENPH stock.
Enphase Energy, Inc.'s current P/E ratio is 26.7x. The historical average is 91.5x. This places it at the 29th percentile of its historical range.
Enphase Energy, Inc.'s current EV/EBITDA is 21.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 45.5x.
Enphase Energy, Inc.'s return on equity (ROE) is 17.9%. The historical average is -40.4%.
Based on historical data, Enphase Energy, Inc. is trading at a P/E of 26.7x. This is at the 29th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Enphase Energy, Inc. has 46.6% gross margin and 11.2% operating margin. Operating margin between 10-20% is typical for established companies.
Enphase Energy, Inc.'s Debt/EBITDA ratio is 5.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Channel inventory and demand cyclicality
Metrics are mathematically derived from official filings.
Gross Margin Volatility Masks Core Earning Power
According to recent SEC filings, Enphase's gross margin swung from 35.5% in Q1 2026 to 60.0% in Q2 2026, while operating margin remained 17.7%, suggesting 45X credits and inventory adjustments distort underlying profitability.
The 60.0% gross margin in Q2 2026 appears heavily influenced by 45X manufacturing credits and possibly favorable inventory adjustments, as the prior quarter's 35.5% reflects write-downs. Operating margin of 17.7% indicates that fixed costs, including R&D and SG&A, absorb a significant portion of gross profit, limiting flow-through. Investors should monitor the sustainability of gross margins ex-credits, as a repeal of 45X could compress margins by 10-15 percentage points, based on analyst estimates.
Return on Capital Remains Subdued
Based on reported figures, Enphase's ROIC averaged only 1.2% over the last ten quarters, with Q2 2026 at 3.1%, indicating that the company is not yet generating meaningful returns on its invested capital relative to its cost of capital.
Despite a strong gross margin profile, ROIC has been consistently low, ranging from -1.5% to 3.1% over the past ten quarters, reflecting a combination of thin operating margins and a growing capital base. The asset-light model with outsourced manufacturing should theoretically support higher returns, but the elevated cash and debt levels have diluted ROIC. The recent debt issuance to $1.2B in Q4 2025, per balance sheet data, may further pressure returns if not deployed into high-ROI projects.
Working Capital Cycle Lengthens on Inventory
As reported in financial statements, Enphase's cash conversion cycle extended to 205 days in Q2 2026 from 62 days in Q3 2025, driven by a surge in days inventory outstanding to 224, indicating potential overstocking or slowing demand.
The dramatic increase in DIO from 78 days in Q1 2026 to 224 days in Q2 2026 suggests that inventory is accumulating, possibly due to channel destocking or a mismatch between production and sell-through. DSO has remained elevated around 73 days, while DPO improved to 93 days, but the net effect is a cash conversion cycle that ties up significant working capital. This inefficiency may indicate that the company is building inventory ahead of expected demand, but if sell-through does not materialize, it could lead to further write-downs.
Leverage Spikes Despite Strong Liquidity
Per company filings, Enphase's debt-to-equity ratio rose to 1.12 in Q4 2025 from 0.52 in Q2 2026, while interest coverage remained comfortable at 21.6x, suggesting the company has taken on debt but can service it with current earnings.
The debt increase to $1.2B in Q4 2025, as reported, appears to be a strategic move to fund operations or buybacks, but it has elevated financial leverage. Interest coverage of 21.6x in Q2 2026 indicates that operating income comfortably covers interest expense, but the negative interest coverage in Q1 2026 (-19.7x) highlights vulnerability during loss-making quarters. The company's strong liquidity position, with a current ratio of 3.45, provides a buffer, but the rising debt load warrants monitoring for refinancing risk if cash flows deteriorate.
Liquidity Buffer Robust but Inventory-Heavy
According to recent balance sheet data, Enphase's current ratio improved to 3.45 in Q2 2026 from 1.90 in Q1 2025, with cash at $529M, but inventory levels have surged, suggesting that a portion of liquidity is tied up in slow-moving stock.
The current ratio of 3.45 and quick ratio of 2.95 indicate a strong ability to cover short-term obligations, even after excluding inventory. However, the sharp rise in DIO to 224 days implies that inventory may be overvalued or difficult to sell, which could lead to future write-downs that erode liquidity. The company's cash position of $529M, per filings, provides a cushion, but if the inventory glut persists, it could consume cash and pressure the liquidity position.
P/E Misleads on Cyclical Earnings
The most commonly misapplied ratio for Enphase is the trailing P/E of 29.1, which fails to account for the cyclicality of earnings and the impact of 45X tax credits, obscuring the true earning power of the business.
Trailing P/E is distorted by volatile quarterly earnings, as seen in Q1 2026's net loss and Q2 2026's rebound, making it an unreliable gauge of value. The forward P/E of 18.6 is more informative but still relies on analyst estimates that may not fully capture the cyclical downturn. A more appropriate metric would be EV/EBITDA adjusted for 45X credits and normalized for the cycle, or a price-to-normalized-earnings ratio that smooths out the impact of inventory and subsidy fluctuations.