Enphase Energy, Inc. (ENPH) Bundle
A Brief History of Enphase Energy, Inc.
Enphase Energy, Inc., a leader in solar energy solutions, has experienced significant growth and challenges since its inception. Founded in 2006, the company specializes in the design and manufacturing of microinverters, energy management technology, and storage solutions. The company went public in 2012 and has since evolved into a key player in the renewable energy sector.
Recent Financial Performance (2024)
As of September 30, 2024, Enphase reported net revenues of $380.9 million for the third quarter, reflecting a 31% decrease from $551.1 million in the same period of 2023. Year-to-date, net revenues for the nine months ended September 30, 2024, totaled $947.7 million, down 52% from $1.99 billion in 2023.
| Period | Net Revenues ($ million) | Change (%) |
|---|---|---|
| Q3 2024 | 380.9 | -31 |
| YTD Q3 2024 | 947.7 | -52 |
Microinverter and Battery Shipments
In Q3 2024, Enphase shipped approximately 1.7 million microinverters, a decrease of 56% compared to 3.9 million units shipped in Q3 2023. Year-to-date, the company shipped 4.5 million microinverters, down 68% from 13.9 million in the same period of 2023. However, shipments of IQ Batteries increased by 101% in Q3 2024, with 172.9 MWh shipped compared to 86.2 MWh in Q3 2023.
Cost and Profitability Metrics
For the third quarter of 2024, the cost of revenues was $202.7 million, down 30% from $289.1 million in Q3 2023. Gross profit for the quarter was $178.2 million, resulting in a gross margin of 46.8%, slightly down from 47.5% year-over-year. For the nine months ended September 30, 2024, gross profit totaled $430.8 million, with a gross margin of 45.5%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenues ($ million) | 202.7 | 289.1 | -30 |
| Gross Profit ($ million) | 178.2 | 262.0 | -32 |
| Gross Margin (%) | 46.8 | 47.5 | -1.5 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, included:
- Research and Development: $155.3 million, a 12% decrease from $176.4 million in 2023.
- Sales and Marketing: $154.8 million, down 13% from $178.4 million in 2023.
- General and Administrative: $98.9 million, down 5% from $104.5 million in 2023.
Stock Performance and Market Activity
As of September 30, 2024, Enphase's stock price was approximately $113.02 per share. The company has a share repurchase program authorized for up to $1 billion, with approximately $598.3 million remaining as of September 30, 2024. In Q3 2024, the company repurchased 434,947 shares for a total of $49.8 million.
| Metric | Value |
|---|---|
| Stock Price ($) | 113.02 |
| Share Repurchase Program Remaining ($ million) | 598.3 |
| Shares Repurchased in Q3 2024 | 434,947 |
| Total Amount Spent on Repurchases ($ million) | 49.8 |
Debt and Cash Flow Position
Enphase reported total debt of $1.3 billion as of September 30, 2024, a slight increase of 0.7% from $1.29 billion in 2023. The company had cash, cash equivalents, and marketable securities totaling $1.77 billion, slightly down from $1.78 billion in 2023.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Debt ($ billion) | 1.3 | 1.29 | 0.7 |
| Cash and Cash Equivalents ($ billion) | 1.77 | 1.78 | -1 |
Recent Challenges and Outlook
The decline in revenues and shipments has been attributed to a broader slowdown in the solar market, influenced by factors such as rising interest rates and policy changes. The company aims to navigate these challenges through innovation and expansion in energy storage solutions.
A Who Owns Enphase Energy, Inc. (ENPH)
Major Shareholders
As of 2024, Enphase Energy, Inc. (ENPH) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders. The following table summarizes the major shareholders along with their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.56% |
| Institutional Investor | BlackRock, Inc. | 7.12% |
| Institutional Investor | State Street Corporation | 4.89% |
| Institutional Investor | Invesco Ltd. | 3.75% |
| Individual Investor | Badri Kothandaraman (CEO) | 0.84% |
| Individual Investor | Other Insiders | 1.22% |
| Retail Investors | Public Float | 73.68% |
Institutional Ownership
Institutional investors hold a significant portion of Enphase Energy's stock, reflecting confidence in the company's future prospects. As of September 30, 2024, the total institutional ownership is approximately 41.32%. The following table provides further details:
| Institution | Ownership Shares | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 14,300,000 | 8.56% |
| BlackRock, Inc. | 11,800,000 | 7.12% |
| State Street Corporation | 8,000,000 | 4.89% |
| Invesco Ltd. | 6,200,000 | 3.75% |
| Other Institutions | 30,000,000 | 17.00% |
Insider Ownership
Company insiders, including executives and board members, own a small percentage of Enphase Energy. As of 2024, insider ownership is reported at 2.06%. The breakdown is as follows:
| Insider | Position | Ownership Shares |
|---|---|---|
| Badri Kothandaraman | CEO | 1,400,000 |
| Other Executives | Various | 800,000 |
| Board Members | Various | 600,000 |
Public Float
The public float, which represents the shares held by retail investors and institutions that are not classified as insiders, comprises approximately 73.68% of total shares. This indicates a high level of liquidity and a broad base of retail investors in the market.
Recent Stock Performance
Enphase Energy's stock performance has been influenced by various market factors, with the following key metrics observed in 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $113.02 |
| Market Capitalization | $15.2 billion |
| 52-Week High | $199.40 |
| 52-Week Low | $93.45 |
| Dividend Yield | 0% |
Enphase Energy, Inc. (ENPH) Mission Statement
Company Overview
Enphase Energy, Inc. is a leading provider of energy management technology, primarily focused on solar energy solutions. The company designs and manufactures solar microinverters, energy storage systems, and software solutions that optimize energy production and consumption.
Mission Statement
Enphase Energy's mission is to enable a sustainable energy future through innovative technology and services that empower homeowners, businesses, and utilities to harness the power of solar energy.
Financial Performance
As of September 30, 2024, Enphase Energy reported significant changes in its financial performance compared to the previous year:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenues | $380,873,000 | $551,082,000 | ($170,209,000) | (31%) |
| Gross Profit | $178,171,000 | $262,013,000 | ($83,842,000) | (32%) |
| Net Income | $45,762,000 | $113,953,000 | ($68,191,000) | (60%) |
| Gross Margin | 46.8% | 47.5% | (0.7%) | (1.5%) |
Operational Highlights
In the nine months ended September 30, 2024, Enphase Energy experienced a decrease in the number of microinverter units shipped, alongside an increase in average selling prices for their products:
| Operational Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Microinverter Units Shipped | 4,500,000 | 13,900,000 | (68%) |
| IQ Batteries MWh Shipped | 368.6 MWh | 270.9 MWh | +36% |
Market Position and Strategy
Enphase Energy positions itself as a leader in the solar energy market, focusing on innovation and customer empowerment. Their strategy includes:
- Enhancing product lines with advanced technology such as the IQ8 microinverters.
- Expanding operations to support virtual power plants and grid services.
- Investing in research and development to drive future growth.
Liquidity and Capital Resources
As of September 30, 2024, Enphase Energy's liquidity position is as follows:
| Liquidity Metric | Amount ($) |
|---|---|
| Cash and Cash Equivalents | $256,325,000 |
| Marketable Securities | $1,510,299,000 |
| Total Debt | $1,300,192,000 |
Conclusion
Enphase Energy remains committed to its mission of promoting a sustainable energy landscape through innovative solutions and strategic growth initiatives.
How Enphase Energy, Inc. (ENPH) Works
Business Overview
Enphase Energy, Inc. specializes in the design and manufacture of solar energy solutions, primarily microinverters, energy management technology, and storage systems. The company operates predominantly in the solar photovoltaic sector, providing integrated solutions that enhance the efficiency and performance of solar energy systems.
Financial Performance
For the nine months ended September 30, 2024, Enphase Energy reported a significant decrease in net revenues, amounting to $947.67 million, a decline of 52% compared to $1.99 billion in the same period in 2023. This downturn was primarily driven by a 68% decrease in microinverter units shipped, totaling approximately 4.5 million units compared to 13.9 million units in the prior year. However, the average selling price (ASP) for microinverters increased due to a higher proportion of IQ8 microinverter sales relative to IQ7 microinverters.
| Financial Metrics | Q3 2024 | Q3 2023 | % Change | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|---|---|---|
| Net Revenues (in thousands) | 380,873 | 551,082 | (31)% | 947,670 | 1,988,216 | (52)% |
| Cost of Revenues (in thousands) | 202,702 | 289,069 | (30)% | 516,825 | 1,076,490 | (52)% |
| Gross Profit (in thousands) | 178,171 | 262,013 | (32)% | 430,845 | 911,726 | (53)% |
| Net Income (in thousands) | 45,762 | 113,953 | (60)% | 40,498 | 418,017 | (90)% |
Cost Structure and Profitability
The cost of revenues for the three months ended September 30, 2024, was $202.7 million, resulting in a gross margin of 46.8%, compared to 47.5% in the same period in 2023. For the nine months ended September 30, 2024, the company reported a gross margin of 45.5%, a slight decrease from 45.9% in the previous year. The gross profit for the nine-month period was $430.85 million, down from $911.73 million in 2023.
Cash Flow Analysis
Enphase Energy's cash flow from operating activities for the nine months ended September 30, 2024, was $346.4 million, a decrease from $661.3 million in the prior year. The net cash used in investing activities was $122.4 million, while net cash used in financing activities amounted to $257.5 million.
| Cash Flow Metrics | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | 346,401 | 661,330 |
| Net Cash Used in Investing Activities | (122,374) | (442,392) |
| Net Cash Used in Financing Activities | (257,537) | (401,785) |
Research and Development
Enphase Energy allocated $150.93 million to research and development for the nine months ended September 30, 2024, a decrease of 12% from $172.05 million in 2023. R&D expenses represented 16% of net revenues, reflecting the company's commitment to innovation within the solar technology sector.
Market Position and Challenges
Enphase Energy faces several challenges, including a slowdown in demand due to elevated inventory levels and high interest rates impacting consumer financing. The transition from NEM 2.0 to NEM 3.0 in California has also contributed to reduced sales. As of September 30, 2024, the company’s total debt stood at $1.3 billion, reflecting a slight increase from the previous year. The company's liquidity position was robust, with cash and cash equivalents totaling approximately $256.3 million.
Stock Performance and Share Repurchase Program
Enphase Energy initiated a share repurchase program in July 2023, authorizing up to $1 billion in repurchases. During the three months ended September 30, 2024, the company repurchased 434,947 shares for $49.8 million, at an average price of $114.48 per share. As of the end of September 2024, approximately $598.3 million remained available for future repurchases under this program.
| Share Repurchase Data | Q3 2024 | Q3 2023 |
|---|---|---|
| Shares Repurchased | 434,947 | 846,648 |
| Total Cost (in millions) | 49.8 | 110.0 |
| Average Price per Share | 114.48 | 129.92 |
| Remaining Authorization (in millions) | 598.3 | N/A |
Geographical Revenue Distribution
For the three months ended September 30, 2024, Enphase Energy's revenue distribution was as follows:
| Geographical Market | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| United States | 284,033 | 350,447 |
| International | 96,840 | 200,635 |
How Enphase Energy, Inc. (ENPH) Makes Money
Revenue Streams
Enphase Energy, Inc. generates revenue primarily through the design, manufacture, and sale of solar energy solutions, particularly microinverters and energy storage systems. The company's revenue can be segmented into several key categories:
- Sales of microinverters
- Sales of energy storage systems (IQ Batteries)
- Sales of electric vehicle (EV) chargers
- Recurring revenue from services and warranties
Financial Performance Overview
As of September 30, 2024, Enphase Energy reported the following financial results:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenues | $380,873,000 | $551,082,000 | $(170,209,000) | (31)% |
| Gross Profit | $178,171,000 | $262,013,000 | $(83,842,000) | (32)% |
| Cost of Revenues | $202,702,000 | $289,069,000 | $(86,367,000) | (30)% |
| Net Income | $45,762,000 | $113,953,000 | $(68,191,000) | (60)% |
Microinverter Sales
Microinverters are a significant revenue source for Enphase. The company sold approximately 1.7 million microinverter units in Q3 2024, a decrease of 56% from the 3.9 million units sold in the same quarter of 2023. Despite this decline, the average selling price (ASP) for microinverters increased due to a higher proportion of IQ8 microinverters sold compared to IQ7 microinverters.
Energy Storage Solutions
Enphase also saw a significant increase in energy storage sales. During the nine months ended September 30, 2024, the company shipped 368.6 MWh of IQ Batteries, representing a 36% increase from 270.9 MWh shipped in the same period of 2023. This growth is attributed to the rising demand for energy storage solutions as consumers seek to enhance their energy independence and efficiency.
Geographical Revenue Breakdown
The following table summarizes Enphase Energy's revenue by geographical market for the third quarter of 2024:
| Geographical Market | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| United States | $284,033,000 | $350,447,000 |
| International | $96,840,000 | $200,635,000 |
Cost Structure and Gross Margin
Enphase's cost of revenues for the three months ended September 30, 2024, was $202.7 million, a decrease of 30% year-over-year. The gross margin for this period was 46.8%, slightly down from 47.5% in the previous year. The decrease in gross margin is attributed to product mix changes and increased fixed overhead costs.
Research and Development Expenses
Enphase's investment in research and development (R&D) for Q3 2024 was $47,843,000, down 13% from $54,873,000 in Q3 2023. This reduction reflects efforts to streamline operations and align R&D spending with current market conditions.
Operating Income and Expenses
In Q3 2024, Enphase reported an operating income of $49,788,000, a significant decline compared to $117,989,000 in Q3 2023. Total operating expenses for the three months were $128,383,000, compared to $144,024,000 in the same quarter of the previous year.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Enphase generated net cash provided by operating activities of $346,401,000. The company reported cash, cash equivalents, and marketable securities totaling $1.8 billion, indicating a stable liquidity position despite a challenging market environment.
Debt and Share Repurchase Program
As of September 30, 2024, Enphase had total debt of $1,300,192,000, slightly up from $1,291,612,000 in the previous year. The company has implemented a share repurchase program with $598.3 million remaining for future repurchases, indicating a commitment to returning value to shareholders.
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Article updated on 8 Nov 2024
Resources:
- Enphase Energy, Inc. (ENPH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Enphase Energy, Inc. (ENPH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Enphase Energy, Inc. (ENPH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.