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

Avoid — cheap because US residential solar demand is structurally shrinking (tax credit gone, tariffs, high rates), not because of a temporary panic.

⚠ TRAP Fundamentals66/100

Down 89% from its all-time high of $336.00 — now $36.86

Why ENPH dropped

Enphase's stock crashed from $336 in 2022 and has stayed low because US residential solar demand kept deteriorating: the federal Section 25D tax credit expired, tariffs on Chinese battery cells are squeezing margins, and high interest rates have hurt homeowner financing for solar installs.

Fwd P/E 16.1Op margin 18.0%Rev growth -19.6%Debt/equity 51.9%Analyst upside 45.0%

How this scored 66/100

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

✅ Makes money Net profit margin 10.1%

✅ Generates cash Free cash flow $78M

✅ Not drowning in debt Debt/equity 51.9% (limit 200%)

✅ Can pay its bills Current ratio 3.5 (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? 14/25

Operating margin 18.0% 6/9

Net profit margin 10.1% 4/8

Return on equity 13.0% 3/8

Growth Is it getting bigger, or dying? 9/25

Revenue growth -19.6% 0/9

Earnings growth -3.5% 1/8

Expected profit change 125.2% 8/8

Value Is it cheap right now? 20/25

Forward P/E 16.1 7/10

PEG ratio 0.8 7/8

Analyst target upside 45.0% 5/7

Balance sheet Will it survive? 23/25

Debt / equity 51.9% 8/10

Current ratio 3.5 8/8

Free cash flow $78M 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for ENPH — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-11. Research only — not financial advice.