Enphase EnergyENPH -1.28%76 Gross Margin % is 35.49% as of Mar. 2026, which is 13% below its 10-year median of 40.97. GuruFocus rates ENPH with a GF Score™ of 76/100 and a GF Value™ of $62.55 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,011 Semiconductors companies, Enphase Energy ranks better than 75.37% on this metric.
The historical rank and industry rank for Enphase Energy's Gross Margin % or its related term are showing as below:
ENPH'
s Gross Margin % Range Over the Past 10 Years
Min: 17.98 Med: 40.97 Max: 47.29
Current: 44.23
During the past 13 years, the highestGross Margin % of Enphase Energy was 47.29%. The lowest was 17.98%. And the median was 40.97%.
ENPH's Gross Margin % is ranked better than 75.37% of 1011
companies
in the Semiconductors industry
Industry Median: 29.61
vs ENPH: 44.23
Enphase Energy had a gross margin of 35.49% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Enphase Energy was 2.30% per year.
Enphase Energy (NAS:ENPH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Enphase Energy had a gross margin of 35.49% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Enphase Energy Gross Margin % Related Terms
Enphase Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Enphase Energy's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ENPH vs SEDG, RUN, SHLS: Gross Margin % Comparison
For the Solar subindustry, Enphase Energy's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Enphase Energy Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Enphase Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Enphase Energy's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Enphase Energy (ENPH) has a Gross Margin % of 35.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Enphase Energy and its competitors. This is 13% below median its historical median of 40.97. Over the past decade, Enphase Energy's Gross Margin % has ranged from 17.98 to 47.29. According to the industry distribution chart, Enphase Energy ranks #249 out of 1011 companies in the Semiconductors industry, placing it in the top 24.6%.
Is Enphase Energy's Gross Margin % too high?
Enphase Energy's current Gross Margin % of 35.49% is 13% below median its 10-year median of 40.97. Over the past 10 years, this metric has ranged from a low of 17.98 to a high of 47.29. The Semiconductors industry median Gross Margin % is 29.61. Enphase Energy's value of 35.49% is 19.9% above this industry median. Based on the distribution chart, Enphase Energy ranks #249 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Enphase Energy has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Enphase Energy's Gross Margin % compare to SEDG and RUN?
According to the Semiconductors industry distribution chart, Enphase Energy ranks #249 out of 1011 companies for Gross Margin %. This places Enphase Energy in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Enphase Energy's value of 35.49% is 19.9% above this benchmark. Historically, Enphase Energy's own Gross Margin % has ranged from 17.98 to 47.29 over the past decade. While the company's 10-year median is 40.97 vs. the industry median of 29.61, Enphase Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Enphase Energy's current Gross Margin % of 35.49% is 19.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Enphase Energy and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Enphase Energy's current Gross Margin % is 35.49%, which is 13% below median its own 10-year median of 40.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Enphase Energy stock overvalued right now?
Based on GuruFocus' analysis, Enphase Energy (ENPH) is currently considered Modestly Undervalued. The stock's GF Value™ is $62.55, compared to a current price of $47.21 — trading 24.5% below its estimated fair value. The current Gross Margin % is 35.49%, which is 13% below median its 10-year median of 40.97 and 19.9% above the Semiconductors industry median of 29.61. Enphase Energy's overall GF Score™ is 76/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Enphase Energy (ENPH), the current Gross Margin % is 35.49% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Enphase Energy (ENPH) Overvalued in 2026?
Based on GuruFocus' analysis, Enphase Energy stock appears to be undervalued.
The current stock price of $47.21 is trading 24.5% below its estimated GF Value™ of $62.55.
GuruFocus considers Enphase Energy to be Modestly Undervalued.
Key valuation signals for ENPH:
Gross Margin %: 35.49% (13% below median its 10-year median of 40.97)
GF Value™: $62.55 vs. price of $47.21 (24.5% below fair value)
Industry Position: 19.9% above the Semiconductors median (#249 of 1011)
No single metric tells the full story. See the ENPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Enphase Energy is a global energy technology company. It delivers smart, easy-to-use solutions that manage solar generation, storage, and communication on one platform. The company's microinverter technology primarily serves the rooftop solar market and produces a fully integrated solar-plus-storage solution. Enphase derives a majority of revenue from the United States.
76GF Score
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