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Enphase Energy (ENPH) on Buyout Spree, Acquires 365 Pronto

·3 min read

Enphase Energy, Inc. ENPH recently announced that it acquired 365 Pronto, Inc, a predictive software platform enabling a two-sided marketplace. It simplifies the cleantech service landscape by matching cleantech asset owners to a local and on-demand workforce of service providers.

Benefits of the Deal

The deal will allow Enphase’s installers to service their own operations and maintenance (O&M) contracts besides providing access to a nationwide qualified supplemental labor pool that can perform service calls during severe labor crisis within the industry. The buyout will increase the service level ofcurrent 365 Pronto customers and get combined with the highly skilled network of Enphase installers as service providers. The agreement will also enhance the homeowner experience of buying and owning solar, battery storage and EV charging stations by helping reduce wait times for maintenance services.

Enphase’s Other Efforts

Enphase continues boosting its existing operations by making inorganic efforts. In November, Enphase announced the deal to acquire ClipperCreek, a provider of electric vehicle (EV) charging solutions. The deal is subject to regulatory approvals and customary closing conditions, expected to reach completion by Dec 31, 2021. In April, Enphase announced that it completed the previously announced acquisition of the Solar Design Services business of DIN Engineering Services LLP.

Enphase is also benefiting from an expanding solar market that set the stage for the solar microinverter market’s boom. ENPH enjoys a strong position as a leading U.S. manufacturer of microinverter. ENPH revolutionized the solar industry by pioneering a semiconductor-based microinverter. ENPH also enjoys a valuable position in the solar market by manufacturing fully integrated solar-plus-storage solutions.

Global Boom in Battery Storage Market

Globally, companies are rapidly adopting renewable sources of energy for a cleaner environment. For this, adoption of solar energy is gaining momentum owing to its low-cost feature. Per a Markets and Markets report, the global battery storage system market is expected to reach $12.1 billion, seeing a CAGR of 32.8% by 2025.

To reap benefits of robust growth in the battery storage market, other solar players namely SolarEdge Technologies SEDG, SunRun RUN and Canadian Solar CSIQ are increasingly deploying capital to this space.

SolarEdge’s StorEdge battery storage system helps meet energy demands with less or cheaper electricity. SEDG recently strengthened its presence in the United States by launching its SolarEdge Energy Bank residential battery.

SEDG delivered an earnings surprise of 5.07% in the last reported quarter. SolarEdge’s long-term (three-five years) earnings growth rate is pegged at 17.7%.

SunRun’s Brightbox solar battery storage system comes with a top-notch innovation in lithium-ion battery technology. RUN is one of the prominent battery storage companies in the United States.

SunRun delivered an earnings surprise of 120% in the last reported quarter. The Zacks Consensus Estimate for its current-quarter earnings has improved 233.3% in the past 60 days.

Canadian Solar is developing one of the world’s largest battery storage project pipelines. As of Sep 30, 2021, CSIQ had 2.9 gigawatt-hour (GWh) of battery storage projects under construction and 21 GWh of the total storage development pipeline.

Canadian Solar’s long-term earnings growth rate is pegged at 12%. CSIQ delivered an earnings surprise of 133.3% in the last reported quarter.

Price Movement

In the past year, shares of Enphase have rallied 3.7% against the industry’s decline of 36.2%.

One Year Price Performance

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Zacks Investment Research

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Zacks Rank

Enphase currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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