A year ago, the stock of Enphase Energy (NASDAQ:ENPH), supplier of solar power system solutions, was trading for under three times sales. Now it’s more than triple that. The stock has had an amazing run over the past few years. A three-year return of 3,600% might have investors wondering if it’s too late to invest. Let’s look at what investors like about the business, and whether there is more room for the stock to run.

Growth spurt

Enphase’s performance has been driven by a huge boost in sales of its solar power microinverters (which convert DC power at the solar panel into the AC used in the home) and strongly rising margins. The transition accelerated after it completed the purchase of SunPower‘s (NASDAQ:SPWR) inverter business in August 2018. 

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