GURUFOCUS.COM » STOCK LIST » USA » NAS » Enphase Energy Inc (NAS:ENPH) » Definitions » Financial Strength
Switch to:

Enphase Energy Financial Strength

: 6 (As of Jun. 2022)
View and export this data going back to 2012. Start your Free Trial

Enphase Energy has the Financial Strength Rank of 6.

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. 2022 was 43.37. Enphase Energy's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.61. As of today, Enphase Energy's Altman Z-Score is 13.53.


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.

   

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 into.



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. 2022 was $-2 Mil. Its Operating Income for the months ended in Jun. 2022 was $94 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,198 Mil.

Enphase Energy's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*94.036/-2.168
=43.37

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. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(92.233 + 1197.786) / 2120.784
=0.61

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 13.53, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 13.53 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 6.


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 Business Description

Enphase Energy logo
Traded in Other Exchanges
Address
47281 Bayside Parkway, Fremont, CA, USA, 94538
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
Haenggi Jamie Elizabeth director 1501 YAMATO ROAD BOCA RATON FL 33431
Malchow Joseph Ian director C/O ENPHASE ENERGY 47281 BAYSIDE PARKWAY FREMONT CA 94538
Quiroga Moreno Isidoro 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
Mcneil Jeff officer: Chief Operating Officer 47281 BAYSIDE PARKWAY FREMONT CA 94538
Yang Mandy officer: Chief Accounting Officer C/O ENPHASE ENERGY, INC. 47281 BAYSIDE PARKWAY FREMONT CA 94538
Branderiz Eric officer: VP & Chief Financial Officer 915 DEGUIGNE DRIVE PO BOX 3453 SUNNYVALE CA 94088-3453
Ranhoff David A officer: VP & Chief Commercial Officer MEMC ELECTRONIC MATERIALS 501 PEARL DRIVE ST. PETERS MO 63366
Kothandaraman Badrinarayanan officer: President & CEO ENPHASE ENERGY INC. 1420 NORTH MCDOWELL BLVD PETALUMA CA 94954
Rodgers Thurman J director 198 CHAMPION COURT SAN JOSE CA 95134
Garcia Humberto 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

Enphase Energy Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)