Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Enphase Energy Inc., FCFE calculation
US$ in thousands
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).
Between 2019 and 2023, the company experienced a significant expansion in its cash generation capabilities, although the trajectory of free cash flow to equity shifted from aggressive growth to a contraction phase after 2021.
- Operating Cash Flow Trends
- Net cash provided by operating activities demonstrated a consistent upward trajectory from 2019 through 2022, increasing from 139.1 million USD to a peak of 744.8 million USD. A slight moderation occurred in 2023, with values decreasing to 696.8 million USD, representing a stabilization following a period of rapid expansion.
- Free Cash Flow to Equity (FCFE) Dynamics
- FCFE exhibited a more volatile pattern compared to operating cash flow, rising sharply from 163.5 million USD in 2019 to a peak of 909.8 million USD in 2021. Following this peak, FCFE entered a steady downward trend, declining to 698.4 million USD in 2022 and further to 586.4 million USD in 2023.
- Analysis of Cash Flow Relationship
- A notable divergence between operating cash flow and FCFE is evident from 2019 to 2021, during which FCFE consistently exceeded operating cash flow. This indicates a period likely characterized by significant net borrowing or other cash inflows to equity. By 2023, this relationship inverted, with FCFE falling below operating cash flow, suggesting an increase in capital expenditures or the repayment of debt relative to new financing.
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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$) | |
| Free cash flow to equity (FCFE) (in thousands) | 586,379) |
| FCFE per share | 4.32 |
| Current share price (P) | 122.47 |
| Valuation Ratio | |
| P/FCFE | 28.35 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Advanced Micro Devices Inc. | 94.18 |
| Analog Devices Inc. | 32.84 |
| Applied Materials Inc. | 42.30 |
| Broadcom Inc. | 57.74 |
| Intel Corp. | — |
| KLA Corp. | 44.91 |
| Lam Research Corp. | 55.94 |
| Marvell Technology Inc. | 64.09 |
| Micron Technology Inc. | 15.18 |
| NVIDIA Corp. | 45.27 |
| Qualcomm Inc. | 12.75 |
| Texas Instruments Inc. | 83.28 |
| P/FCFE, Sector | |
| Semiconductors & Semiconductor Equipment | 180.57 |
| P/FCFE, Industry | |
| Information Technology | 70.99 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Enphase Energy Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 135,759,339 | 136,497,418 | 133,935,574 | 129,021,311 | 123,179,271 | |
| Selected Financial Data (US$) | ||||||
| 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 price1, 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 | — | — | |
| 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.
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.
The analysis of the Price to Free Cash Flow to Equity (P/FCFE) ratio indicates significant volatility in valuation and cash flow performance between 2019 and 2023. The relationship between market pricing and the cash available to equity holders has been characterized by sharp fluctuations rather than a steady linear trend.
- Share Price Volatility
- The share price exhibited substantial movement, increasing from 59.09 USD in 2019 to a peak of 212.57 USD in 2022. A notable correction occurred in the final year of the period, with the price declining to 122.47 USD in 2023.
- FCFE per Share Growth and Contraction
- A strong upward trajectory in Free Cash Flow to Equity per share was observed from 2019 to 2021, with values rising from 1.33 USD to a peak of 6.79 USD. This growth trend reversed after 2021, with FCFE per share contracting to 5.12 USD in 2022 and further decreasing to 4.32 USD in 2023.
- P/FCFE Valuation Dynamics
- The P/FCFE ratio reached its highest level in 2020 at 66.43, suggesting a period of high market optimism and an expanded valuation multiple. A significant compression occurred in 2021, where the ratio fell to 21.45 despite the peak in FCFE per share. The ratio subsequently rose to 41.55 in 2022 before moderating to 28.35 by the end of 2023.
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