The Hunt For Potential 10x Returns: Enphase Is Growing Its Market, Very Profitably

Summary

• The article examines whether Enphase Energy has the potential to appreciate ten times over with its current valuation as part of 'The Hunt For Potential 10x Returns' series.
• As per usual, I use a rating system based on factors such as returns on invested capital, insider ownership, share repurchases, gross profit margin, and intangibles to evaluate Enphase.
• Enphase is currently the second highest rating 10x potential company amongst previously analysed companies - Snowflake, Palantir, and Tesla - however, it falls at the bottom of Seeking Alpha Quant Ratings.
• In all, Enphase has a huge market potential and strong profitability, but the company lacks an operating leverage lever that could accelerate returns even more going forward.

Sundry Photography

Introduction

To continue my hunt for 10x potential returns, I will be running Enphase Energy, Inc. (NASDAQ:ENPH) through the 10-bagger rating list. Enphase's share price is down about 27% year-to-date ("YTD") which may present a good opportunity to buy the

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.