Enphase Energy, Inc. (ENPH) vs Shoals Technologies Group, Inc. (SHLS)

Enphase Energy, Inc. and Shoals Technologies Group, Inc. are both Solar companies. Enphase Energy, Inc. is the larger, with a market value of $4.4B against $1.3B — 3.5× the size. Enphase Energy, Inc. trades at the lower P/E: 31.8× against 39.7×. Shoals Technologies Group, Inc. grew revenue faster over the last twelve months: 46.9% against −10.4%. Enphase Energy, Inc. has the higher net margin (10.1% vs 5.41%) and the higher return on invested capital (8.45% vs 4.89%). Across the 21 metrics below, Enphase Energy, Inc. leads on 13 and Shoals Technologies Group, Inc. on 8.

Valuation

Metric ENPH SHLS Solar median
P/E 31.76 39.69 10.93
P/S 3.22 2.13 0.54
P/B 3.62 2.03 1.44
Price to free cash flow 29.01 n/m 9.91
EV/EBITDA 23.16 18.19 9.90
EV/Sales 3.42 2.45 0.74
Earnings yield 3.15% 2.52% 0.00%
Free cash flow yield 3.45% (4.11%) 0.00%

Profitability

Metric ENPH SHLS Solar median
Gross margin 46.95% 31.92% 31.92%
Operating margin 8.32% 10.63% (9.70%)
Net margin 10.09% 5.41% (8.48%)
Free cash flow margin 11.49% (8.77%) (2.95%)
Return on equity 13.00% 5.34% 5.34%
Return on assets 4.40% 3.51% (5.36%)
Return on invested capital 8.45% 4.89% (5.27%)

Growth

Metric ENPH SHLS Solar median
Revenue growth (TTM) (10.41%) 46.88% 16.97%
EPS growth (last fiscal year) 72.00% 42.86% —
Revenue growth, 5-year CAGR 13.72% 22.05% 14.00%
Net income growth, 5-year CAGR 5.14% (0.11%) 0.00%

Health

Metric ENPH SHLS Solar median
Debt to equity 0.48 0.32 0.09
Current ratio 3.45 2.25 1.33
Net debt to EBITDA (1.29) 1.83 0.03

Dividend

Metric ENPH SHLS Solar median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric ENPH SHLS Solar median
Market cap 4.39b 1.25b 43.46m

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