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.
B · Sound & dependable
Forensic grade
Safe
Financial health
3.1
Distress distance
Clean
Earnings quality
3
Forensic signals
17.9%
ROE
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 (auditor quality, say on pay, board independence, going concern). 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 a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 3.1, 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
5.6%
FY2025
Return on invested capital.Return on invested capital is 5.6% in the latest fiscal year, against 14.9% in FY2023, having run between 2.7% and 14.9% across FY2023–FY2025 with no direction held. After-tax operating profit was $381M in FY2023 and $132M in FY2025, with operating income at 19.5% of revenue in FY2023, 5.8% in FY2024 and 10.7% in FY2025. The capital base behind it went from $2.6B in FY2023 to $2.4B in FY2025 (-8%), while the revenue it carried went from $2.3B to $1.5B. $1.1B of the $2.4B base at FY2025 is short-term investments (48.5%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so this rate understates what the operating capital earns. FY2024's operating profit carried a $29M asset write-down and a $13M restructuring charge that alone took about 1.5 points off that year's return; FY2024 sits between the two ends of FY2023–FY2025, so the charge shapes the path between them without moving the change across it. A non-cash write-down lowers the reported return in the year it lands.
136% of FCF
FY2025
Shareholder returns.Returned $130M to shareholders (buybacks + dividends) in FY2025 — 136% of free cash flow. That is $34M (36%) more than free cash flow covered. It came out of the balance sheet's own liquid holdings, not new debt: cash and short-term investments fell $110M over FY2025, while total debt fell $98M. A payout past free cash flow draws the balance sheet down in every year it continues, 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%
Revenue CAGR (2yr)-19.8%
Net Margin11.7%
Free Cash Flow$95.9M
Return on Equity17.9%
Debt / Equity1.11x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Enphase Energy, Inc.'s actual 10-K/10-Q/8-K filings?