Enphase Energy (NAS:ENPH) Financial Strength

: 7 (As of Jun. 2023)

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Enphase Energy has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Enphase Energy's Interest Coverage for the quarter that ended in Jun. 2023 was 76.84. Enphase Energy's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.46. As of today, Enphase Energy's Altman Z-Score is 6.09.

Competitive Comparison

For the Solar subindustry, Enphase Energy's Financial Strength, along with its competitors' market caps and Financial Strength 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.

Annual Data Quarterly Data

Enphase Energy Financial Strength Distribution

For the Semiconductors industry and Technology sector, Enphase Energy's Financial Strength distribution charts can be found below:

* The bar in red indicates where Enphase Energy's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

Enphase Energy Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Enphase Energy's Interest Expense for the months ended in Jun. 2023 was $-2 Mil. Its Operating Income for the months ended in Jun. 2023 was $170 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $1,201 Mil.

Enphase Energy's Interest Coverage for the quarter that ended in Jun. 2023 is

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	170.497	/	-2.219
	=	76.84

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Enphase Energy's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Jun. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(99.156	+	1201.114)	/	2844.472
	=	0.46

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Enphase Energy has a Z-score of 6.09, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.09 is strong.

* 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.

Enphase Energy (NAS:ENPH) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Enphase Energy has the Financial Strength Rank of 7.

Enphase Energy Financial Strength Related Terms

Thank you for viewing the detailed overview of Enphase Energy's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.

Enphase Energy (NAS:ENPH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Enphase Energy Inc (NAS:ENPH) » Definitions » Financial Strength

Traded in Other Exchanges

ENPH:Mexico E0P:Germany ENPH:Austria

Address

47281 Bayside Parkway, Fremont, CA, USA, 94538

Website

https://www.enphase.com

Enphase Energy is a global energy technology company. The company 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. Geographically, it derives a majority of revenue from the United States.

Executives

Jamie Elizabeth Haenggi	director	1501 YAMATO ROAD, BOCA RATON FL 33431
Joseph Ian Malchow	director	C/O ENPHASE ENERGY, 47281 BAYSIDE PARKWAY, FREMONT CA 94538
Moreno Isidoro Quiroga	10 percent owner	VENIDA PRESIDENTE RIESCO 5711 OFICINA 16, LAS CONDES, SANTIAGO F3 7550000
South Lake One Llc	10 percent owner	250 WEST 55TH STREET, NEW YORK NY 10019
Jeff Mcneil	officer: Chief Operating Officer	47281 BAYSIDE PARKWAY, FREMONT CA 94538
Mandy Yang	officer: Chief Accounting Officer	C/O ENPHASE ENERGY, INC., 47281 BAYSIDE PARKWAY, FREMONT CA 94538
Eric Branderiz	officer: VP & Chief Financial Officer	915 DEGUIGNE DRIVE, PO BOX 3453, SUNNYVALE CA 94088-3453
David A Ranhoff	officer: VP & Chief Commercial Officer	MEMC ELECTRONIC MATERIALS, 501 PEARL DRIVE, ST. PETERS MO 63366
Badrinarayanan Kothandaraman	officer: President & CEO	ENPHASE ENERGY INC., 1420 NORTH MCDOWELL BLVD, PETALUMA CA 94954
Thurman J Rodgers	director	535 EASTVIEW WAY, WOODSIDE CA 94062
Humberto Garcia	officer: VP and CFO	1420 N. MCDOWELL BLVD., PETALUMA CA 94954
Third Point Partners Qualified L P	10 percent owner	390 PARK AVE 18TH FL, NEW YORK NY 10022
Third Point Partners Lp	10 percent owner	390 PARK AVENUE, 18TH FL, NEW YORK NY 10022
Kpcb Green Growth Fund Llc	10 percent owner	2750 SAND HILL ROAD, MENLO PARK CA 94025
Third Point Offshore Master Fund, L.p.	10 percent owner	390 PARK AVENUE, NEW YORK NY 10022