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Enphase Stock: Trailblazing Into The Future

Dec. 02, 2021 12:32 PM ETEnphase Energy, Inc. (ENPH)41 Comments


  • Enphase Energy, Inc. sells micro-inverters that allow energy conversion at individual solar panels while providing energy monitoring and controls.
  • In November 2021, ENPH acquired ClipperCreek, which sells electric vehicle charging solutions in residential and commercial settings.
  • In October 2021, ENPH launched the new IQ8™ solar micro-inverters, which can provide backup power usage without a battery during power outages.
  • We discuss whether investors should add ENPH stock now.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
Professional worker installing solar panels on the roof of a house.

Eloi_Omella/E+ via Getty Images

Investment Thesis

Enphase Energy, Inc. (NASDAQ:ENPH) develops micro-inverters for individual solar panel installations in the US and globally. The micro-inverters allow energy conversion at individual solar panels while providing energy monitoring and controls for individual panels. The system maximizes the total

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This article was written by

JR Research profile picture

JR Research is a seasoned investor with a background in economics. He focuses on identifying growth companies, market trends and growth opportunities. His approach combines price action with fundamentals.

He runs the investing group Ultimate Growth Investing, which specializes in identifying high-potential opportunities across various sectors. The group is designed for aggressive investors seeking to capitalize on high-growth opportunities, and investors looking for growth opportunities at a reasonable price. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (41)

Aricool profile picture
seems to me ENPH's advantage is their quality control to avoid RMAs. Should not that get valued more like the IRBT Roomba, easy to copy but hard to make better/cheaper?
ENPH to $400 in 2023..
Definitely one for long run. What are the entry points to watch out to start taking positions.
fisherick profile picture
@ritholtz47 Plot a 200 day moving average.....ENPH seems to be bouncing nicely off of it. I think you could buy now.....OR.....wait and see if another market flush pushes it back down to it (the 200 day).
Thanks for the update. 200 vs 50 day moving average? Which one is more indicate of bouncing off or trending down?
fisherick profile picture
This company is wildly overvalued. At a $25 billion market cap, this is trading at 5x projected 2025 revenues (and 25x today's revenues when growth companies should trade in the 5x range of today's revenue). Also, the insiders are selling shares like crazy.

No thanks.
Respect the Game profile picture
@Tntowldct i bought more yesterday on the drop, time horizon 15 years, it will be in the top 10 market cap companies by then. ENPH always drops mid earnings but when ER comes it takes off again. Insiders deserve to get paid after this runup.

each to their own.

@Respect the Game This company doesn't make money and is heavily reliant on government subsidies. See below (direct from the author):

"Assuming that the Build Back Better bill passes the Senate, we can further expect $320B in tax credits for companies that install solar panels. The bill will reduce the overall cost of solar panel installation by 30% and electric vehicles by $12.5K. With high federal government support for clean energy, credible secular tailwinds are underpinning ENPH's future success."

Translation: Without government handouts, this company has very cool and very unprofitable gadgets.
Respect the Game profile picture
@Tntowldct ENPH is already profitable and i don't believe the solar industry needs tax credits to be successful going forward. I would prefer tax subsidies to go to storage and grid infrastructure to take electrification to the next level.

SolarEdge is having huge problems with inverter failures leading to RMAs and with their supply chain problems they are not able to fill the RMAs. The batteries for their battery system is simply not available. Also, in a slap in the face to consumers, they are forcing some of the people who have of their cellular modems installed for monitoring, pay out of pocket for replacing equipment intended to last 5 or 12 years. I would have though better of a company in their position.

Our suppliers are asking us to consider Enphase exclusively going forward. I see Enphase taking allot of market share from SolarEdge in the coming years.
Turre profile picture
@SolarPractPro What are RMAs?
worlds worst investor profile picture
@Turre Return Merchandise Authorization: product breaks, customer requests RMA to get it replaced under warranty
What price point would you recommend an entry into the stock?
@Alpha&profitSeeker buy a small position and start averaging.
@Indy72 Hopefully, averaging up...
Nice piece.
I am an ENPH shareholder and am bullish about its prospects.

I disagree with your assertion that one of the reasons to be optimistic about its prospects has to to with V2G charging with respect to TSLA. I understand that, at present, integrating this interactivity will void TSLA's vehicle warranty. I'm hoping that when it adopts new battery tech (4680??), that the increase in charging cycles will allow this use. Mr. Musk seems uncharacteristically reluctant to embrace BEV cars as important components in our renewable future.
@jarratta nvve is doing it with school buses. It makes a lot of sense to me
See everyone at $500..
@Growth2025 that would be my first 20-bagger :)
Respect the Game profile picture
@Indy72 ENPH is establishing personal bests for me two, it’s been a great ride and I expect it to continue well into the future.

worlds worst investor profile picture
Same here, smashed all my previous (pathetic) records lol. bought 250 shares at $3.98; still holding 150 of them. Love this stock :)
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