Latest news with #EnphaseEnergy
Forbes
3 hours ago
- Business
- Forbes
Buy The Dip In AES Stock?
AES (NYSE:AES), an American utility and power generation firm, experienced a nearly 8% drop in its stock during Tuesday's trading session. This decline follows the introduction of proposed modifications to President Trump's tax plan by Senate Finance Committee Republicans. The proposed adjustments aim to reduce renewable energy incentives, intending to eliminate solar, wind, and other clean energy tax credits by 2028 instead of the 2032 timeline established by the Inflation Reduction Act. These adjustments may affect AES, which derives approximately 52% of its power capacity from renewable sources. Excluding the company's hydropower capacity, which will remain unaffected by the cuts to tax credits, around 29% of AES's capacity comes from renewable resources. Furthermore, the company's forthcoming pipeline of projects is predominantly centered on renewable assets. Other significant renewable energy stocks also witnessed a notable decline on Tuesday. See How The Tax Cuts Impact Solar Major Enphase Energy Despite some favorable aspects for AES's stock, such as the growth in data center partnerships and a low valuation, several concerns remain. We reached our conclusion by assessing the current valuation of AES stock in relation to its operational performance over recent years, as well as its current and historical financial health. Our evaluation of AES through key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience reveals that the company has a very weak operating performance and financial status, as detailed below. However, for those seeking upside with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative – it has outperformed the S&P 500 and generated returns exceeding 91% since its inception. When considering what you pay per dollar of sales or profit, AES stock appears inexpensive compared to the broader market. • AES has a price-to-sales (P/S) ratio of 0.7 compared to 3.1 for the S&P 500 • Additionally, it has a price-to-earnings (P/E) ratio of 6.3 in contrast to the benchmark's 26.9 AES's Revenues have experienced a decline over the past few years. • AES's top line has had an average growth rate of 2.5% over the last 3 years (compared to an increase of 5.5% for the S&P 500) • Its revenues have dropped 3.2% from $13 Bil to $12 Bil in the past 12 months (against a growth of 5.5% for the S&P 500) • Furthermore, its quarterly revenues decreased 5.2% to $2.9 Bil in the latest quarter from $3.1 Bil a year prior (versus a 4.8% improvement for the S&P 500) AES's profit margins are around the average level for companies in the Trefis coverage universe. • AES's Operating Income for the last four quarters was $1.8 Bil, representing a moderate Operating Margin of 15.2% • AES's Operating Cash Flow (OCF) during this period was $3.0 Bil, indicating a moderate OCF Margin of 24.8% (compared to 14.9% for the S&P 500) • In the last four-quarter period, AES's Net Income reached $1.3 Bil – reflecting a moderate Net Income Margin of 10.7% (compared to 11.6% for the S&P 500) AES's balance sheet appears very weak. • AES's Debt stood at $31 Bil at the end of the latest quarter, while its market capitalization is $7.5 Bil (as of 6/17/2025). This results in a poor Debt-to-Equity Ratio of 375.6% (compared to 19.4% for the S&P 500). [Note: A low Debt-to-Equity Ratio is preferred] • Cash (including cash equivalents) accounts for $1.8 Bil of the total $49 Bil in AES's Total Assets. This yields a low Cash-to-Assets Ratio of 3.7% AES stock has underperformed significantly against the benchmark S&P 500 index during several recent downturns. While investors hope for a soft landing for the U.S. economy, what might happen if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the last six market crashes. • AES stock plummeted 57.5% from a high of $29.27 on 13 December 2022 to $12.45 on 6 October 2023, in contrast to a peak-to-trough decline of 25.4% for the S&P 500 • The stock has not yet returned to its pre-Crisis high • The highest the stock has achieved since then is 21.77 on 30 May 2024 and is currently trading at around $10.50 • AES stock fell 54.5% from a high of $21.03 on 18 February 2020 to $9.56 on 18 March 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 11 November 2020 • AES stock declined 79.5% from a high of $23.90 on 23 May 2007 to $4.91 on 9 March 2009, versus a peak-to-trough decline of 56.8% for the S&P 500 • The stock completely recovered to its pre-Crisis peak by 5 January 2021 In conclusion, AES's performance across the parameters detailed above is summarized as follows: • Growth: Weak • Profitability: Neutral • Financial Stability: Extremely Weak • Downturn Resilience: Extremely Weak • Overall: Very Weak Consequently, despite its very low valuation, we believe that the stock is unattractive, which reinforces our conclusion that AES is currently a poor investment choice. While it would be wise to steer clear of AES stock for now, you might consider the Trefis Reinforced Value (RV) Portfolio, which has consistently outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to deliver strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks offers a flexible approach to capitalize on favorable market conditions while minimizing losses during downturns, as elaborated in RV Portfolio performance metrics.
Yahoo
15 hours ago
- Business
- Yahoo
Enphase's New Battery Storage Penetrates Major European Countries
Enphase Energy, Inc. ENPH launched its most powerful home battery solution, IQ Battery 5P with FlexPhase, in the solar markets of Spain, Portugal, France, Sweden, Denmark, Belgium and the Netherlands. This energy system has a storage capacity of 5 kilowatt-hours (kWh) and can be configured up to 70 kWh. The IQ Battery 5P with FlexPhase is an all-in-one alternate current-coupled system that provides consistent backup power, supports single-phase and three-phase applications, and is covered by a 15-year combined with the IQ System Controller 3 INT, it may discharge up to twice the maximum continuous power for three seconds, allowing high-power devices to operate during a grid malfunction. It may provide each homeowner with consistent energy, such as backup power or grid support, whenever they desire latest launch will assist Enphase in reaching out to more solar households and installers in Spain, Portugal, France, Sweden, Denmark, Belgium and the Netherlands, all of which are increasingly adopting solar energy and striving to become more grid-independent. This should result in more customers choosing ENPH's battery solutions, boosting its future revenues. The rapidly increasing adoption of clean energy is providing a competitive edge to the energy storage market. Nations are expanding their battery energy storage capacity to boost their clean energy a Solar Power Europe report published in May 2025, battery energy storage system capacity is predicted to expand by 50%, exceeding the 90 gigawatt-hour (GWh) barrier in 2025. Moving ahead, it shows a 45% CAGR, bringing the total installed capacity to about 400 GWh by the end of 2029. Given such a solid outlook, Enphase Energy will surely benefit from its expanding presence in 2025, the company expanded its foothold in the European energy storage industry by introducing its IQ Battery 5P with FlexPhase in Poland, Luxembourg, Germany, Austria and Switzerland. Other prominent solar players, such as Emeren Group Ltd SOL, SolarEdge Technologies SEDG and Canadian Solar Inc. CSIQ, are expanding their footprints to reap the benefits of the expanding clean energy market across has a presence in Europe since 2012. As of March 31, 2025, Emeren had 4,516 megawatts of solar projects in the pipeline under advanced-stage and early-stage development in Zacks Consensus Estimate for the company's 2025 earnings per share (EPS) indicates a surge of 116.7%.In April 2025, SolarEdge launched its ONE Controller for the German residential solar market, which will allow German residential installers to commission solar and storage systems that can interact with the home's Smart Meter Zacks Consensus Estimate for SEDG's 2025 sales calls for an improvement of 18.2%. The Zacks Consensus Estimate for its 2025 EPS is pegged at a loss of $3.26, which implies a significant improvement from the year-ago reported loss of $ May 2025, Canadian Solar revealed that its e-STORAGE subsidiary will officially launch its SolBank 3.0 Plus battery energy storage product at Intersolar Europe, which can significantly reduce customers' operational costs by boosting overall lifetime energy throughput by more than 13%.The Zacks Consensus Estimate for CSIQ's 2025 sales implies an improvement of 4.3%. In the past month, shares of Enphase Energy have declined 28.4% compared with the industry's fall of 12.9%. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Emeren Group Ltd. Sponsored ADR (SOL) : Free Stock Analysis Report Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
These Were the 2 Worst-Performing Stocks in the S&P 500 Over the Last Month
The S&P 500 is hovering near an all-time high as investors have brushed off concerns about tariffs. Enphase Energy tumbled recently on signs that solar credits could be eliminated. Brown-Forman posted another quarter of weak results, due in part to pressure from tariffs. 10 stocks we like better than Brown-Forman › Stocks have rallied in the last month on signs that the economy has thus far been resilient to tariffs and on hopes that the U.S. and China can negotiate a trade agreement. However, not every stock has been a winner. Let's take a look at two of the worst-performing stocks on the S&P 500 (SNPINDEX: ^GSPC) over the last month to see if either of them is worth buying. Enphase Energy (NASDAQ: ENPH), a leading maker of microinverters used with solar panels, took a dive on Tuesday, as the Senate kept cuts to wind and solar energy incentives that were in the House version of the tax and budget bill. Enphase was one of several solar stocks that tumbled on the news, falling 24%, and as of June 17, it's down 30.7% over the last month. That performance continues a weak run for the stock, which is down over the last five years, as solar stocks have struggled due to competition from China, a volatile regulatory environment, and falling prices. Enphase reported first-quarter earnings in April, with solid top-line growth of 35% to $356.1 million and a profit of $29.3 million. Nonetheless, an end of regulatory credits could put significant pressure on its business. Brown-Forman (NYSE: BF.B), maker of Jack Daniel's and other spirits, has also struggled due to regulatory challenges. In Brown-Forman's case, it's due to tariffs imposed on American whiskey exports, impacting its top brands, which also include Woodford Reserve. As of June 17, the stock was down 28.5% over the last month. In its first-quarter earnings report, the company said that revenue fell 7%, or 3% on an organic basis. Brown-Forman also said it named new distributors in 13 markets across the U.S., part of an effort to deliver a boost to domestic sales. Still, with geopolitical pressure on American spirit brands, and broader weakness in the category, Brown-Forman seems likely to continue to struggle. Before you buy stock in Brown-Forman, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brown-Forman wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends Enphase Energy. The Motley Fool has a disclosure policy. These Were the 2 Worst-Performing Stocks in the S&P 500 Over the Last Month was originally published by The Motley Fool
Yahoo
2 days ago
- Business
- Yahoo
Enphase Energy (ENPH) Fell Hard This Week. Here is Why.
The share price of Enphase Energy, Inc. (NASDAQ:ENPH) fell by 22.54% between June 10 and June 17, 2025, putting it among the Energy Stocks that Lost the Most This Week. A solar panel array stretched across a large open field, its glimmering panels reflecting the sun. Enphase Energy, Inc. (NASDAQ:ENPH) is a global energy technology company and the world's leading supplier of micro-inverter-based solar and battery systems. Enphase Energy, Inc. (NASDAQ:ENPH) nosedived to a 5-year low this week following a proposal by the Senate Finance Committee to speed up the elimination of tax credits for solar and wind energy industries. According to the new proposal, these incentives would be reduced by 60% next year and phased out entirely in 2028, in contrast to the original expiry date of 2032, according to the current law. The proposed legislation deals a massive blow to the rooftop solar industry, as it would remove the 30% federal tax credit for taxpayers who install solar rooftop systems, posing a significant threat to players like Enphase Energy, Inc. (NASDAQ:ENPH). While we acknowledge the potential of ENPH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and Disclosure: None.
2 days ago
- Business
Asian shares are mixed and oil prices rise as escalating Iran-Israel crisis hits Wall Street
HONG KONG -- Asian shares were mixed and oil prices advanced Wednesday after the escalation of conflict in the Middle East hit Wall Street. U.S. benchmark crude oil was up 24 cents at $73.51 per barrel. Brent crude, the international standard, was up 28 cents at $76.71 per barrel. Crude prices rose more than 4% on Tuesday after U.S. President Donald Trump left a Group of Seven summit in Canada early and warned that people in Iran's capital should evacuate immediately. Within about eight hours, Trump went from suggesting a nuclear deal with Iran remained 'achievable' to urging Tehran's 9.5 million residents to flee for their lives. The fighting has driven prices for crude oil and gasoline higher because Iran is a major oil exporter and it sits on the narrow Strait of Hormuz, through which much of the world's crude passes. Past conflicts in the area have caused spikes in oil prices, though they've historically proven brief after showing that they did not disrupt the flow of oil. Japan reported that its exports fell in May as the auto industry was hit by Trump's higher tariffs, with exports to the U.S. falling more than 11%. But Tokyo's Nikkei 225 jumped 0.7% to 38,803.10. Hong Kong's Hang Seng dropped 1.2% to 23,695.62 while the Shanghai Composite Index retreated 0.2% to 3,380.47. The Kospi in Seoul gained 0.6% to 2,967.89 while Australia's S&P/ASX 200 shed 0.2% to 8,528.50. On Tuesday, U.S. stocks slumped under the weight of higher oil prices and weaker than expected retail sales in May. The S&P 500 fell 0.8% to 5,982.72 and the Dow Jones Industrial Average dropped 0.7% to 42,215.80. The Nasdaq composite fell 0.9% to 19,521.09. Trump raised the temperature on Israel's fight with Iran by calling for 'UNCONDITIONAL SURRENDER!' on his social media platform and saying, 'We are not going to' kill Iran's leader, 'at least for now.' Pricier oil can help stocks of companies in the solar industry because they increase the incentive to switch to alternative energy sources. But solar stocks tumbled Tuesday on the possibility that Congress may phase out tax credits for solar, wind and other energy sources that produce fewer emissions that change the Earth's climate. Enphase Energy dropped 24%, and First Solar fell 17.9%. Treasury yields fell after a report said shoppers spent less last month at U.S. retailers than the month before. Solid spending has been one of the linchpins keeping the economy out of a recession, but part of May's drop may have simply been a return to more normal trends. In April, some shoppers had rushed to buy automobiles to get ahead of Trump's tariffs. Verve Therapeutics soared 81.5% after Eli Lilly said it would buy the company developing genetic medicines for cardiovascular disease in a $1 billion deal that could be worth up to $1.3 billion if certain conditions are met. Lilly's stock fell 2%. All the action took place as the Federal Reserve began a two-day meeting on interest rates. The nearly unanimous expectation among traders and economists is that the Fed will make no move. The Fed has hesitated to lower interest rates, and it's been on hold this year after cutting at the end of last year, because it's waiting to see how much Trump's tariffs will hurt the economy and raise inflation. Inflation has remained relatively tame recently, and it's near the Fed's target of 2%. In currency trading early Wednesday, the U.S. dollar fell to 145.09 Japanese yen from 145.29 yen. The euro edged higher, to $1.1498 from $1.1480.
