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

Avoid — its main customer base (US homeowners) just lost the 30% tax credit that made solar affordable, and sales are still falling.

⚠ TRAP Fundamentals68/100

Down 90% from its all-time high of $336.00 — now $32.40

Why ENPH dropped

The stock is down 90% from its 2022 high because the main driver of its business — the 30% federal residential solar tax credit — expired at the end of 2025, and tariffs on imported components are also squeezing margins; revenue is down ~20% year over year and the company posted a GAAP net loss in Q1 2026.

Fwd P/E 14.3Op margin 18.0%Rev growth -19.6%Debt/equity 51.9%Analyst upside 59.6%

How this scored 68/100

✅ 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 124.3% 8/8

Value Is it cheap right now? 22/25

Forward P/E 14.3 8/10

PEG ratio 0.8 7/8

Analyst target upside 59.6% 7/7

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

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-28. Research only — not financial advice.