ENPHCAUTIOUS

Return on Equity (ROE)

14.1%

Updated 32h ago

Sector Performance

51th percentile

ENPH

14.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from every dollar of shareholder equity — a 14.1% ROE means ENPH earns $14.10 in profit for every $100 of equity.

This sits slightly above the sector median of 13.8%, placing ENPH in the 51st percentile among its peers, so it is essentially in line with the typical company in its sector. There is no trend data available: both the year-over-year and quarter-over-quarter changes are listed as N/A, and only a single historical value (14.1%) is provided, so no direction can be inferred. Because only a current level exists with no trend to confirm momentum, the risk or opportunity is neutral — a single reading above the median suggests acceptable profitability, but there is no evidence of improvement or deterioration. The overall CAUTIOUS verdict is supported by this metric: while the ROE is slightly above the sector norm, the lack of any trend data and the narrow margin over the median do not provide a strong reason to upgrade the stock's outlook.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ENPH?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are ENPH's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.