Enphase Q4-2022 Earnings Update
Enphase recently delivered stellar earnings results as it has a habit of doing. Below you’ll find the major highlights from their report as well as our new Buy and Sell prices for the company (the PIF watchlist has been updated with these prices).
What does Enphase Energy (ENPH) do?
Enphase Energy helps people use the power of the sun to make energy for their homes. The company offers a semiconductor-based microinverter, which converts energy at the individual solar module level, and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It also offers AC battery storage systems; as well as other accessories.
They sell their equipment to other companies who install it for people or people can buy it themselves. They started in 2006 and are based in California.
Is ENPH Halal?
We maintain our Comfortable rating for ENPH after it’s most recent earnings call.
See details of our rating here.
Just the Numbers
Q4 Financial Results:
- Total revenue was $724.7 million, a 14% increase sequentially and a quarterly record.
- The gross margin was 42.9%.
- Net income was $153.8 million.
- Generated $253.7 million in cash flow from operations and $237.3 million in free cash flow.
Q1 2023 Business Outlook:
- Revenue is expected between $700 million to $740 million.
- Gross margin expected between 40% to 44%.
Financial Performance in 2022:
- Revenue grew 59% YoY.
- Gross margin was 42.6%.
- Diluted earnings per share were $4.62.
- Generated record free cash flow of $698.4 million, double that of 2021.
Beyond the Numbers
- Customer satisfaction: The company’s net promoter score was 71%, with a North American score of 74%. Anything above 70 is considered excellent. See attached for context.
- Microinverter manufacturing: The company has a stable supply environment and plans to increase capacity to over 10 million microinverters by the end of 2023 with U.S. manufacturing.
- GreenCom Networks acquisition: Enables homeowners to control devices through one app and is being integrated with the Enphase ecosystem.
- Regional performance: The company saw strong growth in the U.S. and Europe and has plans to introduce IQ8 microinverters and batteries in several European countries and Australia.
- Emerging markets: The company plans to introduce a high-power 480 watt AC microinverter to better service emerging markets in Brazil, Mexico, Spain, and India.
- The company is generally bullish on its prospects in 2023 and so is PIF.
Buy & Sell Prices
Below you’ll find our New buy price for Enphase (the price below which we would still buy the company).
And our New Sell price (the price above which we would sell our shares).
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