Forensic Analysis · Semiconductors · as of Aug 10, 2026

Enphase Energy, Inc. (ENPH)

A forensic read on Enphase Energy, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

A · High-quality compounder

Forensic grade

Safe

Financial health

5.0

Distress distance

Clean

Earnings quality

Forensic signals

39.1

P / E (ttm)

15.8%

ROE

$5.5B

Market cap

10.7%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Enphase Energy, Inc. earns an A (High-quality compounder) forensic quality grade, and its balance-sheet distress test reads 5.0, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

5.5%

FY2025

Return on invested capital. Return on invested capital is 5.5% in the latest fiscal year and slipping from 19% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.

136% of FCF

FY2025

Shareholder returns. Returned $130M to shareholders (buybacks + dividends) in FY2025 — 136% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely. Counting the $214M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 359%.

105d

FY2024→FY2025

Inventory days. Days inventory outstanding moved from 99 to 105 FY2024→FY2025 (against cost of goods sold; inventory +75% vs +12% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.

Key fundamentals

Latest Revenue$1.47B

Revenue Growth YoY+10.7%

Net Margin11.7%

Free Cash Flow$95.9M

Return on Equity15.8%

Debt / Equity1.11x

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Data from SEC EDGAR public filings · metrics as of Aug 10, 2026. Forensic signals flag probability, not certainty.