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ENPH, Enphase Energy

Semiconductors asset-light Cyclical

Energy storage, by leveraging our design expertise across power electronics, semiconductors and cloud-based software technologies.

We deliver smart, easy-to-use solutions that manage solar generation, storage and communication on one platform.

Our intelligent microinverters work with virtually every solar panel made, and when paired with our smart technology, result in one of the industry's best-performing clean energy systems.

Latest annual: FY2025 10-K

ENPH · Enphase Energy

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$1.5B

+10.7% YoY · 14% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.4B 5-yr avg $1.8B

Gross margin 44% 5-yr avg 44%

Operating margin 6.9% 5-yr avg 14.2%

ROIC 8% 5-yr avg 14%

Owner-earnings margin 10% 5-yr avg 25%

Free cash flow margin 10% 5-yr avg 24%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 40% and operating margin about 11% through the cycle, a spread the cycle sets more than the company does. The margin is cyclical, swinging between −19% and 24% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Stock-based pay runs about 5.5% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on process leadership and the capex cycle. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run in the teens (median 16%, above 15% in 5 of 9 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. The steadier read is owner earnings: roughly 22% of revenue reaches owners as cash, though it swings. Returns like these are solid but short of clear franchise economics; whether they hold is what the 10-K settles, not the multiple.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

19% of revenue comes from outside the United States.

Revenue by geography, FY2025

United States81%$1.2B
International19%$284M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$323M	$286M	$316M	$624M	$774M	$1.4B	$2.3B	$2.3B	$1.3B	$1.5B	$1.4B	RevenueRevenue
18%	20%	30%	35%	45%	40%	42%	46%	47%	47%	44%	Gross marginGross mgn
8%	8%	9%	6%	7%	8%	6%	6%	10%	9%	10%	SG&A / revenueSG&A/rev
16%	12%	10%	6%	7%	8%	7%	10%	15%	13%	13%	R&D / revenueR&D/rev
($63M)	($39M)	$2M	$103M	$186M	$216M	$448M	$446M	$77M	$158M	$96M	Operating incomeOp. inc.
−19.4%	−13.8%	0.5%	16.5%	24.1%	15.6%	19.2%	19.5%	5.8%	10.7%	6.9%	Operating marginOp. mgn
($67M)	($45M)	($12M)	$161M	$134M	$145M	$397M	$439M	$103M	$172M	$135M	Net incomeNet inc.
—	—	—	—	—	—	12%	14%	15%	16%	6%	Effective tax rateTax rate
											Cash flow & returns
($33M)	($28M)	$16M	$139M	$216M	$352M	$745M	$697M	$514M	$137M	$191M	Operating cash flowOp. cash
$11M	$9M	$10M	$14M	$18M	$31M	$59M	$75M	$81M	$81M	$82M	DepreciationDeprec.
$14M	$1M	$7M	($56M)	$22M	$61M	$72M	($30M)	$118M	($330M)	($233M)	Working capital & otherWC & other
$12M	$4M	$4M	$15M	$21M	$52M	$46M	$110M	$34M	$41M	$46M	CapexCapex
3.8%	1.4%	1.3%	2.4%	2.7%	3.8%	2.0%	4.8%	2.5%	2.8%	3.3%	Capex / revenueCapex/rev
($45M)	($33M)	$12M	$124M	$196M	$321M	$698M	$622M	$480M	$96M	$145M	Owner earningsOwner earn.
−14.0%	−11.4%	3.8%	19.9%	25.3%	23.2%	30.0%	27.2%	36.1%	6.5%	10.4%	Owner earnings marginOE mgn
($45M)	($33M)	$12M	$124M	$196M	$300M	$698M	$586M	$480M	$96M	$145M	Free cash flowFCF
−14.0%	−11.4%	3.8%	19.9%	25.3%	21.7%	30.0%	25.6%	36.1%	6.5%	10.4%	Free cash flow marginFCF mgn
$0	$0	$15M	$0	$0	$236M	$62M	$0	$0	—	$0	AcquisitionsAcquis.
—	—	—	$0	$0	$500M	$0	$410M	$391M	$130M	—	BuybacksBuybacks
-675%	-271%	—	81%	138%	16%	24%	19%	4%	7%	8%	ROICROIC
-5189%	—	-150%	59%	28%	34%	48%	45%	12%	16%	12%	Return on equityROE
n/m	—	−150%	59%	28%	34%	48%	45%	12%	16%	12%	Retained to equityRetained/eq
											Balance sheet
$18M	$29M	$106M	$251M	$679M	$1.0B	$1.6B	$1.7B	$1.6B	$1.5B	$931M	Cash & investmentsCash+inv
$61M	$65M	$79M	$145M	$182M	$334M	$441M	$446M	$224M	$230M	$197M	ReceivablesReceiv.
$32M	$26M	$16M	$32M	$42M	$74M	$150M	$214M	$165M	$288M	$291M	InventoryInvent.
$32M	$29M	$49M	$57M	$73M	$114M	$125M	$116M	$90M	$203M	$113M	Accounts payablePayables
$61M	$63M	$46M	$120M	$151M	$294M	$466M	$543M	$299M	$315M	$374M	Operating working capitalOper. WC
$118M	$130M	$222M	$500M	$933M	$1.5B	$2.3B	$2.4B	$2.3B	$2.6B	$1.8B	Current assetsCur. assets
$83M	$92M	$147M	$199M	$534M	$440M	$638M	$532M	$660M	$1.3B	$482M	Current liabilitiesCur. liab.
1.4×	1.4×	1.5×	2.5×	1.7×	3.3×	3.5×	4.6×	3.5×	2.1×	3.8×	Current ratioCurr. ratio
$4M	$4M	$25M	$25M	$25M	$181M	$214M	$215M	$212M	$215M	$214M	GoodwillGoodwill
$164M	$169M	$340M	$713M	$1.2B	$2.1B	$3.1B	$3.4B	$3.2B	$3.5B	$2.7B	Total assetsAssets
$24M	$50M	$110M	$106M	$331M	$1.0B	$1.3B	$1.3B	$1.3B	$1.2B	$573M	Total debtDebt
$6M	$21M	$4M	($146M)	($349M)	$21M	($322M)	($401M)	($320M)	($308M)	($358M)	Net debt / (cash)Net debt
-22.6×	-4.8×	0.1×	10.6×	8.9×	4.8×	47.5×	50.4×	8.7×	34.8×	30.9×	Interest coverageInt. cov.
$1M	($9M)	$8M	$272M	$484M	$430M	$826M	$984M	$833M	$1.1B	$1.1B	Shareholders’ equityEquity
3.2%	2.4%	3.6%	3.2%	5.5%	8.3%	9.3%	9.3%	15.9%	14.5%	14.8%	Stock comp / revenueSBC/rev
											Per share
50.5M	82.9M	99.6M	132M	142M	143M	144M	143M	140M	135M	131M	Shares out (diluted)Shares
$6.39	$3.45	$3.17	$4.74	$5.46	$9.67	$16.14	$15.99	$9.50	$10.92	$10.66	Revenue / shareRev/sh
$-1.34	$-0.54	$-0.12	$1.22	$0.94	$1.02	$2.75	$3.06	$0.73	$1.28	$1.03	EPS (diluted)EPS
$-0.89	$-0.39	$0.12	$0.94	$1.38	$2.25	$4.84	$4.34	$3.43	$0.71	$1.10	Owner earnings / shareOE/sh
$-0.89	$-0.39	$0.12	$0.94	$1.38	$2.10	$4.84	$4.09	$3.43	$0.71	$1.10	Free cash flow / shareFCF/sh
$0.24	$0.05	$0.04	$0.11	$0.14	$0.37	$0.32	$0.77	$0.24	$0.30	$0.35	Cap. spending / shareCapex/sh
$0.03	$-0.11	$0.08	$2.07	$3.41	$3.01	$5.72	$6.86	$5.95	$8.06	$8.39	Book value / shareBVPS

The diluted share count moved ×1.64 into 2017 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+6.1%/yr	+14.9%/yr
Owner earnings / share	—	−12.4%/yr
EPS	—	+6.2%/yr
Capital spending / share	+2.5%/yr	+15.8%/yr
Book value / share	+89.4%/yr	+18.8%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

135Mpeak FY2022

ROIC

7%low FY2016

Gross margin

47%low FY2016

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$96Mowner earningsvs.$172Mnet incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2018FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $172M of profit but $96M of owner earnings: $76M less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$172M

Owner earnings$96M · 7% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$172M	$103M	$439M	$397M	$145M
Depreciation & amortizationnon-cash charge added back	+$81M	+$81M	+$75M	+$59M	+$31M
Stock-based compensationreal costnon-cash, but a real cost	+$214M	+$211M	+$213M	+$217M	+$114M
Working capital & othertiming of cash in and out, other non-cash items	−$330M	+$118M	−$30M	+$72M	+$61M
Cash from operations	$137M	$514M	$697M	$745M	$352M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$41M	−$34M	−$75M	−$46M	−$31M
Owner earnings	$96M	$480M	$622M	$698M	$321M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	−$36M	—	−$21M
Free cash flow	$96M	$480M	$586M	$698M	$300M
Owner-earnings marginowner earnings ÷ revenue	7%	36%	27%	30%	23%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $214M), owner earnings is nearer ($118M).

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 34.8×

Comfortable

Operating income $158M ÷ interest expense $5M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$308M

Net cash

Cash $474M + ST investments $1.0B − debt $1.2B

What this means
Cash and short-term investments exceed every dollar of debt by $308M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 96d

Long (60+ days)

DSO 57 + DIO 134 − DPO 94 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 16%

High through the cycle

9-yr median, range -675%–138%; 7% latest = NOPAT $132M ÷ invested capital $1.8B

Industry peers: median 7%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 9 years (it ran 7% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 20%

High through the cycle

10-yr median margin, range -14%–36%; latest $96M = operating cash $137M − maintenance capex $41M

Industry peers: median 7%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 7% of revenue this year, a 20% median across 10 years. Treating stock comp as the real expense it is (less $214M of SBC) leaves ($118M).
Are earnings backed by cash? 0.79×

Mostly cash-backed

Cash from ops $137M ÷ net income $172M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 136%

Returned more than it generated

Dividends + buybacks $130M ÷ Owner Earnings $96M

What this means
The company returned more than it generated: against $96M of Owner Earnings, $130M (136%) went back to shareholders, $0 dividends, $130M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. But the buybacks barely exceed stock issued to employees ($214M SBC), net of dilution, little was truly returned. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.50×

Harvesting

Capex $41M ÷ depreciation $81M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $1.5B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 2.07×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $1.2B vs $1.3B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 3 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $1.81/share (latest year $1.31), the averaged base the calculator's gate runs on, and book value is $8.25/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 7 of 10

What this means
Lost money in 3 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 5 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −11% → 12% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −11% early to 12% lately, median 11% — pricing power intact or improving.
Reinvestment, incremental ROIC 12%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Worst year 2016 · −19.4% op. margin

What this means
Operations went underwater in 2016, understand why before trusting the good years.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product; it frames AI mainly as a capability.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.8B

Cash & short-term investments$931M
Receivables$197M
Inventory$291M
Other current assets$412M

Current liabilities$482M

Accounts payable$113M
Other current liabilities$368M

Current ratio3.80×all current assets ÷ what's due · Graham looked for 2×

Quick ratio3.20×stricter: inventory excluded

Cash ratio1.93×strictest: cash alone against what's due

Working capital$1.3Bthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago−20.6%the freshest read on whether the business is still growing

Current ratio, recent quarters4.2× → 3.8×

Deeper floors

Tangible book value$871Mequity stripped of goodwill & intangibles

Net current asset value$209MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$612M$40M of it operating leases

Deferred revenue$471Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $2.8B of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

Reinvested$339M · 12%
Buybacks$1.4B · 52%
Retained (debt / cash)$984M · 36%

Returned to owners$1.4B
58% of the owner earnings the business produced over the span, $0 as dividends and $1.4B as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt rose $549M and cash and short-term investments rose $913M.
Average price paid for buybacks$124.85
Across the years where the filing reports a share count, 3M shares were bought for $410M, about $124.85 each.
Net change in share count160.0%
The diluted count rose from 51M to 131M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Badri Kothandaraman	$19.0M	$13.8M	$321M
2022	Badri Kothandaraman	$16.6M	$23.0M	$698M
2023	Badri Kothandaraman	$19.5M	$2.5M	$622M
2024	Badri Kothandaraman	$12.6M	$3.4M	$480M
2025	Badri Kothandaraman	$9.6M	−$16k	$96M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership2.9%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio162:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$214M
The slice of the business handed to employees in shares this year, 15% of revenue, equal to 136% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Enphase Energy is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereDid the share count rise anyway?160.0%
Diluted shares grew 160.0% over 2016–2025, even as the company spent $1.4B on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.
Look hereAre "one-time" charges a yearly habit?8 of 10 years
Management took an impairment or write-down in 8 of the last 10 years, $50M in all. A charge taken almost every year is not one-time; it is the business — past deals coming due, and an admission the assets were worth less than what was paid. Munger's rule: when the "one-time" keeps happening, it is the business. Read it beside the goodwill the company still carries.

And these came back clean

Is it less profitable than it was?
Did debt outgrow the business?
Did reported profit become cash?
Did receivables and inventory outpace sales?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Inventory as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Semiconductors

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
OSISOSI Systems Inc. Common Stock (DE)	$1.7B	35%	9.6%	11%	6%
DIODDiodes	$1.5B	35%	11.8%	11%	9%
ENPHEnphase Energy	$1.5B	41%	13.2%	16%	22%
PENGPenguin Solutions Inc.	$1.4B	23%	4.0%	7%	5%
CRDOCredo Technology Group Holding Ltd	$1.3B	63%	-11.5%	-6%	-19%
ARRYArray Technologies Inc.	$1.3B	23%	-1.7%	-2%	7%
SEDGSolarEdge Technologies Inc.	$1.2B	31%	10.2%	14%	9%
VIAVViavi Solutions Inc.	$1.1B	58%	5.6%	5%	8%
Group median	—	35%	7.6%	9%	8%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Enphase Energy has delivered.

Today’s price $

Through the cycle, Enphase Energy earns about $318M on its 21.6% median owner-earnings margin. This year’s 6.5% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($318M) Net of stock comp (−$207M) Steady-state · maintenance capex ($150M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−13%/yr

Owner-earnings growth · since FY2018+35%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $145M on 132M shares outstanding, per the 10-Q cover, as of 2026-04-20; net cash $358M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($46M) runs well above depreciation ($82M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $150M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh ENPH against another business →

Cite: Owner Scorecard, "Enphase Energy (ENPH), the owner's record," https://ownerscorecard.com/c/ENPH, data as of 2026-07-09.

Manual order: ← ENOV its page in the Manual ENR →

Industry order: ← DQ the Semiconductors chapter FORM →