ENPHCAUTIOUS

Gross Margin

35.5%

Updated 32h ago

Sector Performance

31th percentile

ENPH

35.5%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

A gross margin of 35.5% means that for every dollar of revenue, Enphase Energy keeps $0.355 after covering the direct costs of producing its solar inverters and systems.

This is below the sector median of 44.7%, placing the company in the 31st percentile among its peers — meaning about 69% of competitors have a higher gross margin. Because the year-over-year change, quarter-over-quarter change, and eight-quarter trend are all not available, there is no directional context to assess whether margins are improving or deteriorating. With only a single current value and no trend data, the risk lies in the margin being well below the industry standard, which could signal weaker pricing power or higher production costs. This single data point aligns with the CAUTIOUS verdict — a below-median gross margin without any improving trajectory does not contradict a cautious stance and instead reinforces it.

Frequently Asked Questions

What does the Gross Margin tell investors about ENPH?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are ENPH's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.