The Case Against Enphase Energy's $200 Million Share Repurchase Program

When it comes to high-growth opportunities, few companies have delivered for shareholders quite like Enphase Energy (NASDAQ: ENPH) in recent years. The business grew annual revenue from $286 million in 2017 to $624 million in 2019. In that short span, gross profit jumped 294% and an operating loss of $39 million swung to an operating profit of $102 million.

Profitable growth of that magnitude is pretty rare, which helps to explain why investors have placed a steep premium on shares. Enphase Energy is valued at $8.4 billion and 12.4 times trailing sales. The growth stock has gained 9,540% in the last three years.

That's all worked out pretty well for investors, but a new initiative might not have such a favorable outcome: a recently announced $200 million share repurchase program.

Source Fool.com