Price to Operating Profit (P/OP)
since 2012
Calculation
Enphase Energy Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Income (loss) from operations1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 9, 2024 | 37.30 | = | 122.47 | ÷ | 3.28 | 3.28 | = | 445,741 | ÷ | 135,759,339 | |
| Feb 13, 2023 | 64.73 | = | 212.57 | ÷ | 3.28 | 3.28 | = | 448,261 | ÷ | 136,497,418 | |
| Feb 11, 2022 | 90.41 | = | 145.69 | ÷ | 1.61 | 1.61 | = | 215,832 | ÷ | 133,935,574 | |
| Feb 16, 2021 | 133.91 | = | 193.50 | ÷ | 1.45 | 1.45 | = | 186,439 | ÷ | 129,021,311 | |
| Feb 21, 2020 | 70.85 | = | 59.09 | ÷ | 0.83 | 0.83 | = | 102,729 | ÷ | 123,179,271 | |
| Mar 15, 2019 | 615.35 | = | 9.05 | ÷ | 0.01 | 0.01 | = | 1,596 | ÷ | 108,519,598 | |
| Apr 2, 2018 | — | = | 4.51 | ÷ | -0.41 | -0.41 | = | -39,378 | ÷ | 95,829,245 | |
| Mar 16, 2017 | — | = | 1.37 | ÷ | -0.76 | -0.76 | = | -62,700 | ÷ | 82,525,301 | |
| Mar 1, 2016 | — | = | 2.44 | ÷ | -0.42 | -0.42 | = | -19,309 | ÷ | 46,363,602 | |
| Mar 4, 2015 | — | = | 13.61 | ÷ | -0.10 | -0.10 | = | -4,429 | ÷ | 43,914,728 | |
| Mar 4, 2014 | — | = | 8.48 | ÷ | -0.52 | -0.52 | = | -22,158 | ÷ | 42,236,859 | |
| Mar 5, 2013 | — | = | 4.88 | ÷ | -0.76 | -0.76 | = | -31,161 | ÷ | 41,223,308 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Enphase Energy Inc. Annual Report.
Between 2013 and 2024, a transition is observed from a period of sustained operating losses to one of significant profitability and subsequent valuation adjustment.
- Operating Profitability Trends
- Operating profit per share remained negative from 2013 through 2018, with the deepest losses occurring in 2013 and 2017. A pivot to profitability occurred in 2019 with a marginal gain of 0.01 USD. Following this inflection point, operating profit grew aggressively, increasing from 0.83 USD in 2020 to a peak of 3.28 USD in 2023, a level that was maintained into 2024.
- Share Price Evolution
- The share price exhibited relative stagnation and volatility between 2013 and 2019, remaining below 10 USD. A period of rapid appreciation began in 2020, with the price escalating from 59.09 USD to a high of 212.57 USD in 2023. A corrective phase followed in 2024, with the price declining to 122.47 USD.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio was not applicable during the years of operating losses. Upon the transition to profitability in 2019, an extreme ratio of 615.35 was recorded, resulting from the very low base of operating profit. In the subsequent years, the ratio became more volatile but trended downward. Despite a spike to 133.91 in 2021, the ratio declined steadily to 64.73 in 2023 and further to 37.30 in 2024.
The overall trajectory indicates a significant compression of the valuation multiple. While operating profits reached a plateau in the final two years, the decline in share price led to a substantial reduction in the P/OP ratio, suggesting a shift toward a more conservative market valuation relative to the company's operating performance.
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Comparison to Competitors
Enphase Energy Inc., P/OP, long-term trends, comparison to competitors
| Enphase Energy Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 9, 2024 | 37.30 | 675.69 | 23.53 | 17.58 | 31.96 | 1,984.43 | 16.79 | 147.29 | — | 136.19 | 15.85 | 19.75 |
| Feb 13, 2023 | 64.73 | 100.42 | 26.16 | 11.35 | 16.33 | 49.91 | 11.79 | — | 5.93 | 66.12 | 7.95 | 16.29 |
| Feb 11, 2022 | 90.41 | 39.48 | 56.12 | 18.85 | 30.78 | 10.82 | 18.34 | — | 12.48 | 75.08 | 15.84 | 17.67 |
| Feb 16, 2021 | 133.91 | 75.77 | 33.76 | 18.50 | 44.04 | 9.72 | 20.40 | — | 19.51 | 66.40 | 23.32 | 26.53 |
| Feb 21, 2020 | 70.85 | 91.66 | 24.74 | 16.36 | 36.85 | 13.29 | 12.13 | 295.81 | 6.83 | 24.79 | 12.60 | 21.46 |
| Mar 15, 2019 | 615.35 | 51.38 | 17.62 | 6.74 | 19.42 | 9.40 | 8.67 | 24.26 | 3.20 | 45.61 | 103.26 | 15.00 |
| Apr 2, 2018 | — | 59.52 | 30.97 | 14.35 | 44.92 | 11.86 | 13.68 | 78.88 | 7.98 | 31.31 | 30.15 | 16.81 |
| Mar 16, 2017 | — | — | 21.85 | 16.54 | — | 13.40 | 13.46 | — | 106.63 | 23.80 | 15.26 | 16.07 |
| Mar 1, 2016 | — | — | 22.69 | 12.92 | 23.80 | 9.66 | 14.45 | 18.85 | 6.04 | 16.52 | 15.68 | 12.34 |
| Mar 4, 2015 | — | — | 23.01 | 19.66 | 59.05 | 10.60 | 16.98 | 27.46 | 11.23 | 19.66 | 17.00 | 15.64 |
| Mar 4, 2014 | — | 26.08 | 20.62 | 46.30 | 23.31 | 10.02 | 64.12 | 18.01 | 74.52 | 12.16 | 16.30 | 17.02 |
| Mar 5, 2013 | — | — | 14.67 | 31.47 | 13.51 | 7.13 | 26.84 | 15.14 | — | 14.06 | 17.43 | 19.14 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).