Enphase Energy Profit Margin vs. Current Valuation
| E0P Stock | EUR 71.38 0.69 0.96% |
For Enphase Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Enphase Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Enphase Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Enphase Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Enphase Energy over time as well as its relative position and ranking within its peers.
Enphase |
Enphase Energy Current Valuation vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Enphase Energy's current stock value. Our valuation model uses many indicators to compare Enphase Energy value to that of its competitors to determine the firm's financial worth. Enphase Energy is one of the top stocks in profit margin category among its peers. It also is rated as one of the top companies in current valuation category among its peers reporting about 251,022,840,610 of Current Valuation per Profit Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Enphase Energy's earnings, one of the primary drivers of an investment's value.Enphase Current Valuation vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Enphase Energy |
| = | 0.17 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Enphase Energy |
| = | 42.8 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Enphase Current Valuation vs Competition
Enphase Energy is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Semiconductor Equipment & Materials industry is currently estimated at about 259.26 Billion. Enphase Energy retains roughly 42.8 Billion in current valuation claiming about 17% of equities listed under Semiconductor Equipment & Materials industry.
Enphase Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Enphase Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Enphase Energy will eventually generate negative long term returns. The profitability progress is the general direction of Enphase Energy's change in net profit over the period of time. It can combine multiple indicators of Enphase Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. Enphase Energy, Inc. was founded in 2006 and is headquartered in Fremont, California. ENPHASE ENERGY operates under Semiconductor Equipment Materials classification in Germany and is traded on Frankfurt Stock Exchange. It employs 427 people.
Enphase Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Enphase Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Enphase Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Enphase Energy's important profitability drivers and their relationship over time.
Use Enphase Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Enphase Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Enphase Energy will appreciate offsetting losses from the drop in the long position's value.Enphase Energy Pair Trading
Enphase Energy Pair Trading Analysis
The ability to find closely correlated positions to Enphase Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Enphase Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Enphase Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Enphase Energy to buy it.
The correlation of Enphase Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Enphase Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Enphase Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Enphase Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Enphase Energy position
In addition to having Enphase Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Enphase Stock
When determining whether Enphase Energy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Enphase Energy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Enphase Energy Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Enphase Energy Stock:Check out Investing Opportunities. For more detail on how to invest in Enphase Stock please use our How to Invest in Enphase Energy guide.You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
To fully project Enphase Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Enphase Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Enphase Energy's income statement, its balance sheet, and the statement of cash flows.