Is the business good?
How good a business is ENPH?
Enphase Energy, Inc. earns 10% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
10%
Return on invested capital · cost of capital 9.0% · 1.2 points above what the capital costs: growth creates value
- Operating margin
- 6.9%
Operating margin · Solar median 4.8% · 12 months to Q1 2026
- Cash conversion
- 1.07×
Cash conversion · 3.18× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −3.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 24% |
| FY2021 | 16% |
| FY2022 | 19% |
| FY2023 | 19% |
| FY2024 | 5.8% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q1 2026
- 44%
- Operating margin12 months to Q1 2026
- 6.9%
- Net margin12 months to Q1 2026
- 9.6%
- Free cash flow margin
- 10%
- R&D as % of revenue
- 13%
- Revenue, trailing twelve months
- $1.40B
- Free cash flow, trailing twelve months
- $145M
- Net income, trailing twelve months
- $135M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.