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Enersys (ENS)
NYSE:ENS
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EnerSys
(NYSE:ENS)79Outperform
Positive Factors
Government Support
A near-term catalyst is seen with likely DOE funding for a domestic Li-ion plant and upside from M&A.
Innovation and Growth
Innovation around secular trends of electrification, automation, and digitization is expected to drive future growth.
Negative Factors
Infrastructure Challenges
The confluence of aging grid infrastructure, rapidly rising power demand, and growing challenges is expected to drive increasing demand for the company’s industrial power solutions.
EnerSys (ENS) vs. S&P 500 (SPY)
Market Cap
$3.96B
Dividend Yield0.93%
Average Volume (3M)306.49K
Price to Earnings (P/E)12.4
Beta (1Y)0.95
Revenue Growth-2.94%
EPS Growth22.32%
CountryUS
Employees10,797
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)8.08
Shares Outstanding39,428,486
10 Day Avg. Volume323,203
30 Day Avg. Volume306,489
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)N/A
Price to Sales (P/S)1.12
Price to Cash Flow (P/CF)12.20
P/FCF Ratio14.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$117.50Price Target Upside16.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EnerSys Business Overview & Revenue Model
Company DescriptionEnerSys (ENS) is a global leader in stored energy solutions for industrial applications. The company operates in sectors such as telecommunications, aerospace and defense, data centers, material handling, and renewable energy. EnerSys designs, manufactures, and distributes a comprehensive range of batteries, battery accessories, and integrated systems, offering both reserve and motive power solutions to ensure reliable energy storage and power supply for its customers worldwide.
How the Company Makes MoneyEnerSys generates revenue primarily through the sale of its battery products and energy storage systems. The company's key revenue streams include motive power batteries, which are used in industrial forklift trucks and other material handling equipment, and reserve power batteries, which provide backup power for telecommunication networks, data centers, and other critical infrastructure. EnerSys also offers services related to energy storage systems, such as installation, maintenance, and technical support. Additionally, the company benefits from strategic partnerships and collaborations with other technology and energy companies, enhancing its product offerings and market reach. Factors such as growing demand for renewable energy solutions and advancements in battery technology contribute to the company's earnings potential.
EnerSys Financial Statement Overview
Summary
EnerSys demonstrates a strong financial position with healthy profitability, efficient asset utilization, and stable cash flows. The company leverages low debt levels, enhances equity strength, and maintains operational efficiency. While revenue growth shows some variability, the overall financial health suggests resilience and effective management in the industrial goods sector.Income Statement
EnerSys has shown a strong financial performance with a consistent increase in gross profit and net profit margins over the years. The TTM (Trailing-Twelve-Months) gross profit margin stands at 29.4%, and the net profit margin is 9.2%, indicating efficient operational management. Revenue growth is slightly mixed with a decrease from the previous annual report but an overall positive trend from earlier years. EBIT and EBITDA margins are healthy at 12.3% and 13.7% respectively for the TTM period.85
Very Positive
Balance Sheet
EnerSys maintains a solid balance sheet with a low debt-to-equity ratio of 0.02 in the TTM period, showing minimal leverage and financial stability. The return on equity (ROE) is a robust 17.8%, reflecting efficient use of equity capital. The equity ratio is strong at 45.8%, suggesting significant asset financing through equity. However, the reduction in total debt and liabilities over time highlights a conservative financial strategy.78
Positive
Cash Flow
The company exhibits a positive cash flow trend with a free cash flow growth rate of -61.2% in the TTM period compared to the previous annual report, indicating some variability in cash generation. The operating cash flow to net income ratio is 0.80, and the free cash flow to net income ratio is 0.44, showing that operational activities and investments are well-managed. Despite fluctuations, the overall cash flow situation remains stable.80
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.55B | 3.58B | 3.71B | 3.36B | 2.98B | 3.09B | Gross Profit |
| 1.04B | 996.77M | 840.82M | 750.00M | 739.10M | 784.80M | EBIT |
| 437.96M | 351.57M | 295.65M | 206.20M | 216.40M | 102.86M | EBITDA |
| 485.71M | 441.13M | 366.61M | 307.59M | 304.95M | 280.15M | Net Income Common Stockholders |
| 328.10M | 269.10M | 175.81M | 143.91M | 143.37M | 137.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 333.32M | 333.32M | 346.67M | 402.49M | 451.81M | 326.98M | Total Assets |
| 3.47B | 3.47B | 3.62B | 3.74B | 3.46B | 3.30B | Total Debt |
| 914.26M | 914.26M | 1.16B | 1.30B | 1.00B | 1.22B | Net Debt |
| 580.94M | 580.94M | 814.10M | 896.01M | 552.63M | 897.21M | Total Liabilities |
| 1.71B | 1.71B | 2.01B | 2.24B | 1.92B | 2.00B | Stockholders Equity |
| 1.75B | 1.75B | 1.60B | 1.49B | 1.54B | 1.30B |
| Cash Flow | Free Cash Flow | ||||
| 143.69M | 370.59M | 191.17M | -139.63M | 288.36M | 151.97M | Operating Cash Flow |
| 261.89M | 457.03M | 279.94M | -65.58M | 358.38M | 253.40M | Investing Cash Flow |
| -334.79M | -92.48M | -44.80M | -69.23M | -65.04M | -274.82M | Financing Cash Flow |
| 229.52M | -370.56M | -270.45M | 98.43M | -188.72M | 62.68M |
EnerSys Technical Analysis
Positive
101.23
Price Trends
97.36
Positive
97.28
Positive
99.36
Positive
Market Momentum
0.80
Positive
54.77
Neutral
54.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENS, the sentiment is Positive. The current price of 101.23 is above the 20-day moving average (MA) of 101.00, above the 50-day MA of 97.36, and above the 200-day MA of 99.36, indicating a bullish trend. The MACD of 0.80 indicates Positive momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 54.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENS.
EnerSys Risk Analysis
EnerSys disclosed 37 risk factors in its most recent earnings report. EnerSys reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
EnerSys Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.96B | 12.43 | 18.36% | 0.93% | -2.94% | 22.32% | |
68 Neutral | $3.24B | 40.69 | 4.55% | 1.80% | 3.25% | -66.29% | |
64 Neutral | $488.11M | 10.43 | 5.92% | ― | 28.76% | -9.56% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
49 Neutral | $556.92M | ― | -45.73% | ― | 20.29% | -106.22% | |
43 Neutral | $1.56B | ― | -90.88% | ― | -29.45% | -10.79% | |
38 Underperform | $130.35M | ― | -17.27% | ― | -9.13% | 1.93% |
* Industrials Sector Average
Performance Comparison
ENS
EnerSys
101.23
8.75
9.46%
ABM
ABM Industries
54.64
13.42
32.56%
AMRC
Ameresco
11.09
-10.23
-47.98%
FCEL
Fuelcell Energy
6.59
-26.71
-80.21%
PLUG
Plug Power
1.78
-1.88
-51.37%
TSE:BLDP
Ballard Power Systems
1.78
-2.25
-55.83%
EnerSys Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 6.84% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixture of positive achievements in revenue and segment performance, particularly in Specialty and order rates, tempered by challenges such as FX headwinds, slower-than-expected recovery in communications, and macroeconomic uncertainties. Overall, the company is positioned for growth, but some caution is warranted due to external pressures.Highlights
Revenue and Margin Growth
EnerSys reported a 5% year-over-year increase in revenue for Q3, with a notable margin expansion driven by strong price mix and operational improvements. Adjusted EPS, excluding IRA benefits, was up 10%, and inclusive of IRA benefits, it was up 22%.
Specialty Segment Performance
The Specialty segment saw a 17% year-over-year increase in revenue, driven by a 21% positive impact from the Brentronics acquisition and improved performance in aerospace and defense.
Improvement in Order Rates
Overall orders increased year over year, with strong performance in the Energy Systems Americas segment. Communications orders in the Americas were up 40% and data center orders increased by 25%.
Brentronics Acquisition Success
The Brentronics acquisition exceeded expectations, with strong demand for chargers and power systems, contributing to revenue and earnings growth.
Lowlights
FX Headwinds and Commodity Pressures
The company faced foreign exchange headwinds and commodity hedge timing issues, resulting in a $0.20 per share pressure that impacted Q3 results.
Slower Recovery in Communications
Despite improvements, the recovery in the U.S. communications market was slower than anticipated, impacting revenue expectations.
Motive Power Disruption
A large customer plant disruption in EMEA affected Motive Power revenue, with an impact of approximately $10 million.
Macroeconomic Uncertainty
Ongoing macroeconomic uncertainty, particularly in EMEA, and evolving U.S. policy landscape contributed to a cautious spending environment.
Company Guidance
During the third quarter fiscal 2025 EnerSys earnings call, the company provided updated guidance reflecting significant growth expectations for the fourth quarter. EnerSys reported a 5% year-over-year revenue increase for Q3, driven by a 2% rise in organic volume and a 3% positive impact from the Brentronics acquisition, despite a 2% FX headwind. Adjusted EPS increased by 22% year over year, attributed to impressive margin expansion and operational improvements. For Q4, EnerSys revised its full-year guidance, anticipating an 8% year-over-year revenue growth and a nearly 50% increase in adjusted EPS at the midpoint. The company highlighted positive market indicators, particularly in the U.S. communications and Class 8 OEM transportation sectors, and emphasized its strategic focus on long-term growth, flexibility, and cost management.EnerSys Corporate Events
Financial Disclosures
EnerSys Boosts Earnings Guidance with New Tax Credits
Positive
Dec 17, 2024
EnerSys announced that it will benefit from the Advanced Manufacturing Production Credit under Section 45X of the Internal Revenue Code, leading to incremental tax credits of approximately $3 million to $4 million per quarter. As a result, EnerSys has increased its adjusted diluted earnings per share guidance for fiscal third quarter 2025 and full year fiscal 2025, reflecting the positive financial impact of these tax credits on its operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.