Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

Enphase Energy Inc., FCFE calculation

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	438,936)	397,362)	145,449)	133,995)	161,148)
Net noncash charges	240,714)	285,329)	191,516)	106,992)	(23,506)
Changes in operating assets and liabilities	17,130)	62,126)	15,063)	(24,653)	1,425)
Net cash provided by operating activities	696,780)	744,817)	352,028)	216,334)	139,067)
Purchases of property and equipment	(110,401)	(46,443)	(52,258)	(20,558)	(14,788)
Purchase of intangible asset	—)	—)	(250)	—)	—)
Issuance of convertible notes, net of issuance costs	—)	—)	1,188,439)	312,420)	127,413)
Purchase of convertible note hedges	—)	—)	(286,235)	(89,056)	(36,313)
Fees paid for repurchase and exchange of convertible notes due 2023	—)	—)	—)	—)	(6,000)
Principal payments and financing fees on debt	—)	—)	(1,694)	(2,575)	(45,855)
Partial repurchase of convertible notes	—)	—)	(290,247)	(40,728)	—)
Free cash flow to equity (FCFE)	586,379)	698,374)	909,783)	375,837)	163,524)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The financial data reveals notable fluctuations and growth patterns in both operating cash flow and free cash flow to equity (FCFE) over the five-year period.

Net Cash Provided by Operating Activities: The net cash generated from operations exhibited a substantial increase from 2019 to 2022, starting at 139,067 thousand US dollars in 2019, rising steadily each year to peak at 744,817 thousand US dollars in 2022. However, there was a slight decline in 2023, dropping to 696,780 thousand US dollars. This overall trend reflects a strong operating performance with a peak followed by a modest reduction in the final year observed.
Free Cash Flow to Equity (FCFE): The FCFE showed more volatility but a generally upward trajectory from 2019 through 2021. It increased markedly from 163,524 thousand US dollars in 2019 to a high of 909,783 thousand US dollars in 2021. After 2021, FCFE declined over the next two years, reaching 586,379 thousand US dollars in 2023. Despite the decrease after 2021, FCFE remains notably higher than in the earlier years of the period.

Overall, both operating cash flow and free cash flow to equity strengthened considerably through the midpoint of the data range, with particularly strong growth up to 2021-2022, followed by a downward adjustment in 2023. The data suggests improvements in cash generation capacity, accompanied by some moderation in cash flow returns to equity holders in the latter years.

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Price to FCFE Ratio, Current

Enphase Energy Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	135,759,339
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	586,379)
FCFE per share	4.32
Current share price (P)	122.47
Valuation Ratio
P/FCFE	28.35
Benchmarks
P/FCFE, Competitors¹
Advanced Micro Devices Inc.	143.34
Analog Devices Inc.	34.84
Applied Materials Inc.	61.51
Broadcom Inc.	71.83
Intel Corp.	—
KLA Corp.	63.83
Lam Research Corp.	91.46
Marvell Technology Inc.	123.51
Micron Technology Inc.	797.19
NVIDIA Corp.	56.68
Qualcomm Inc.	15.80
Texas Instruments Inc.	81.05
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	242.96
P/FCFE, Industry
Information Technology	82.20

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Enphase Energy Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
No. shares of common stock outstanding¹	135,759,339	136,497,418	133,935,574	129,021,311	123,179,271
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	586,379)	698,374)	909,783)	375,837)	163,524)
FCFE per share³	4.32	5.12	6.79	2.91	1.33
Share price^1, 4	122.47	212.57	145.69	193.50	59.09
Valuation Ratio
P/FCFE⁵	28.35	41.55	21.45	66.43	44.51
Benchmarks
P/FCFE, Competitors⁶
Advanced Micro Devices Inc.	241.70	33.46	44.72	—	—
Analog Devices Inc.	22.28	24.14	34.67	33.98	—
Applied Materials Inc.	17.53	19.17	27.20	23.21	—
Broadcom Inc.	30.06	14.62	22.35	9.16	—
Intel Corp.	—	—	14.25	—	—
KLA Corp.	26.78	9.01	28.06	—	—
Lam Research Corp.	18.67	24.95	34.58	—	—
Marvell Technology Inc.	34.85	13.90	72.25	—	—
Micron Technology Inc.	—	18.66	37.24	81.71	—
NVIDIA Corp.	151.07	54.83	35.22	—	—
Qualcomm Inc.	11.97	19.13	17.93	34.91	—
Texas Instruments Inc.	37.61	23.88	21.87	—	—
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	47.29	28.10	25.18	—	—
P/FCFE, Industry
Information Technology	33.12	26.68	27.39	—	—

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 586,379,000 ÷ 135,759,339 = 4.32

⁴ Closing price as at the filing date of Enphase Energy Inc. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 122.47 ÷ 4.32 = 28.35

⁶ Click competitor name to see calculations.

Share Price: The share price exhibited considerable volatility over the analyzed period. It increased significantly from $59.09 in 2019 to a peak of $212.57 in 2022. However, in 2023, the share price declined sharply to $122.47, indicating a notable correction after reaching the previous high.
Free Cash Flow to Equity (FCFE) per Share: The FCFE per share showed a general upward trend from 2019 through 2021, rising from $1.33 to a peak of $6.79. This suggests improving cash generation capability available to equity holders during this period. However, in the last two years, FCFE per share decreased to $5.12 in 2022 and further to $4.32 in 2023, indicating some deterioration in free cash flow generation after the peak year.
Price to FCFE Ratio (P/FCFE): The P/FCFE ratio fluctuated substantially throughout the period. It started at 44.51 in 2019, increased sharply to 66.43 in 2020, reflecting market optimism relative to free cash flow generation. Following this, the ratio dropped to 21.45 in 2021, aligning with the rise in FCFE per share and possibly indicating improved valuation. In 2022, the ratio rose again to 41.55, coinciding with the highest share price despite a decline in FCFE per share, suggesting an increase in market valuation relative to cash flow. Finally, in 2023, the ratio declined to 28.35, reflecting the combined effect of a lower share price and decreased FCFE per share.