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ENPH (Enphase Energy) Altman Z-Score : 3.62 (As of Dec. 13, 2024)


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What is Enphase Energy Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 3.61 is strong.

Enphase Energy has a Altman Z-Score of 3.62, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Enphase Energy's Altman Z-Score or its related term are showing as below:

ENPH' s Altman Z-Score Range Over the Past 10 Years
Min: -1.05   Med: 4.89   Max: 20.33
Current: 3.61

During the past 13 years, Enphase Energy's highest Altman Z-Score was 20.33. The lowest was -1.05. And the median was 4.89.


Enphase Energy Altman Z-Score Historical Data

The historical data trend for Enphase Energy's Altman Z-Score 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.

* Premium members only.

Enphase Energy Altman Z-Score Chart

Enphase Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.86 20.33 10.16 11.49 6.37

Enphase Energy Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.93 6.37 5.82 4.77 5.00

Competitive Comparison of Enphase Energy's Altman Z-Score

For the Solar subindustry, Enphase Energy's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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's Altman Z-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Enphase Energy's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Enphase Energy's Altman Z-Score falls into.



Enphase Energy Altman Z-Score Calculation

Altman 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.

Enphase Energy's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.5494+1.4*-0.0321+3.3*0.0219+0.6*4.2504+1.0*0.383
=3.62

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2024:
Total Assets was $3,264 Mil.
Total Current Assets was $2,361 Mil.
Total Current Liabilities was $567 Mil.
Retained Earnings was $-105 Mil.
Pre-Tax Income was 50.743 + 11.216 + -11.499 + 12.227 = $63 Mil.
Interest Expense was -2.237 + -2.22 + -2.196 + -2.268 = $-9 Mil.
Revenue was 380.873 + 303.458 + 263.339 + 302.57 = $1,250 Mil.
Market Cap (Today) was $9,915 Mil.
Total Liabilities was $2,333 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(2360.881 - 567.478)/3264.191
=0.5494

X2=Retained Earnings/Total Assets
=-104.927/3264.191
=-0.0321

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(62.687 - -8.921)/3264.191
=0.0219

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=9915.473/2332.818
=4.2504

X5=Revenue/Total Assets
=1250.24/3264.191
=0.383

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Enphase Energy has a Altman Z-Score of 3.62 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Enphase Energy  (NAS:ENPH) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Enphase Energy Altman Z-Score Related Terms

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Enphase Energy Business Description

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
Badrinarayanan Kothandaraman officer: President & CEO ENPHASE ENERGY INC., 1420 NORTH MCDOWELL BLVD, PETALUMA CA 94954
David A Ranhoff officer: VP & Chief Commercial Officer MEMC ELECTRONIC MATERIALS, 501 PEARL DRIVE, ST. PETERS MO 63366
Thurman J Rodgers director 535 EASTVIEW WAY, WOODSIDE CA 94062
Mandy Yang officer: Chief Accounting Officer C/O ENPHASE ENERGY, INC., 47281 BAYSIDE PARKWAY, FREMONT CA 94538
Steven J Gomo director 495 E. JAVA DRIVE, SUNNYVALE CA 94089
Richard Mora director C/O LANDIS+GYR, 30000 MILL CREEK AVE, SUITE 3022, ALPHARETTA GA 30022
Jeff Mcneil officer: Chief Operating Officer 47281 BAYSIDE PARKWAY, FREMONT CA 94538
Joseph Ian Malchow director C/O ENPHASE ENERGY, 47281 BAYSIDE PARKWAY, FREMONT CA 94538
Benjamin John Kortlang director, 10 percent owner 2750 SAND HILL ROAD, MENLO PARK CA 94025
Eric Branderiz officer: VP & Chief Financial Officer 915 DEGUIGNE DRIVE, PO BOX 3453, SUNNYVALE CA 94088-3453
Jamie Elizabeth Haenggi director 1501 YAMATO ROAD, BOCA RATON FL 33431
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
John Howard Weber director 600 CORPORATION DRIVE, PENDLETON IN 46064
Humberto Garcia officer: VP and CFO 1420 N. MCDOWELL BLVD., PETALUMA CA 94954