Enphase Energy, Inc. (ENPH): a likely value trap?

Avoid — the core US residential market that built Enphase's profits just lost its federal tax credit, and revenue/margins are actively shrinking, not stabilizing.

⚠ TRAP Fundamentals58/100

Down 89% from its all-time high of $336.00 — now $38.01

Why ENPH dropped

The stock's multi-year decline and current level are driven by a structural, ongoing problem: the US federal residential solar tax credit (Section 25D) expired at the end of 2025, and Enphase itself said this caused a sharp drop in US demand and revenue.

Fwd P/E 15.8Op margin -9.1%Rev growth -20.6%Debt/equity 55.5%Analyst upside 28.7%

How this scored 58/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 9.6%

✅ Generates cash Free cash flow $92M

✅ Not drowning in debt Debt/equity 55.5% (limit 200%)

✅ Can pay its bills Current ratio 3.8 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 8/25

Operating margin -9.1% 0/9

Net profit margin 9.6% 4/8

Return on equity 14.1% 4/8

Growth Is it getting bigger, or dying? 10/25

Revenue growth -20.6% 0/9

Earnings growth unknown 2/8

Expected profit change 138.6% 8/8

Value Is it cheap right now? 17/25

Forward P/E 15.8 8/10

PEG ratio 1.0 6/8

Analyst target upside 28.7% 3/7

Balance sheet Will it survive? 23/25

Debt / equity 55.5% 8/10

Current ratio 3.8 8/8

Free cash flow $92M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-28. Research only — not financial advice.