Should you buy Enphase stock? (August 2023)
- 8 months ago
Enphase Energy stock analysis. Ticker: ENPH
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Solar power company Enphase Energy used to be one of the best stocks in the whole market. From 2017 to 2022, the stock went up almost 48,000 percent! But this year Enphase has plunged, taking shares to just 124 dollars and making it the worst performing stock in the S&P 500.
That drop means the company now has a valuation of 16.9 billion. It’s got 1.8 billion of cash and investments and 1.2 billion of debt on the balance sheet, so the enterprise value is 16.3 billion.
Revenue over the last 12 months is 2.8 billion with 573 million of net income, and 865 million of free cash flow. That means Enphase stock is now valued at 5.8 times revenue, 30 times earnings or 19 times free cash flow.
That’s not too expensive when you look at the growth of the company. Revenue growth over the last 4 years has averaged 67%. And based on forward guidance, the stock is valued at around 19x next years earnings.
So why has Enphase stock fallen so sharply?
#enphstock #stocks #investing #overlookedalpha
Join 10,000 investors: https://www.overlookedalpha.com
Solar power company Enphase Energy used to be one of the best stocks in the whole market. From 2017 to 2022, the stock went up almost 48,000 percent! But this year Enphase has plunged, taking shares to just 124 dollars and making it the worst performing stock in the S&P 500.
That drop means the company now has a valuation of 16.9 billion. It’s got 1.8 billion of cash and investments and 1.2 billion of debt on the balance sheet, so the enterprise value is 16.3 billion.
Revenue over the last 12 months is 2.8 billion with 573 million of net income, and 865 million of free cash flow. That means Enphase stock is now valued at 5.8 times revenue, 30 times earnings or 19 times free cash flow.
That’s not too expensive when you look at the growth of the company. Revenue growth over the last 4 years has averaged 67%. And based on forward guidance, the stock is valued at around 19x next years earnings.
So why has Enphase stock fallen so sharply?
#enphstock #stocks #investing #overlookedalpha