EnerSys (ENS) AI Stock Analysis

• Market Cap: $4.11B
• Dividend Yield: 0.89%
• Average Volume (3M): 321.79K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.17
• Revenue Growth: 3.73%
• EPS Growth: 32.29%
• Country: US
• Employees: 10,797
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.08
• Shares Outstanding: 37,466,930
• 10 Day Avg. Volume: 404,813
• 30 Day Avg. Volume: 321,786
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 8.33
• 1Y Price Target: $120.00
• Price Target Upside: 9.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: $115.00 ▲(4.66% Upside)

EnerSys is well-positioned with strong financial performance and technical momentum. The company's strategic initiatives and valuation metrics are favorable, though high debt levels and restructuring risks require monitoring. Overall, the stock presents a solid investment opportunity with potential for growth.

Positive Factors

Strategic Framework Launch

The EnerGize framework is expected to generate $80 million in annualized savings by fiscal year 2026, enhancing operational efficiency and supporting long-term growth.

Defense Market Expansion

Expanding into the defense sector through acquisitions strengthens EnerSys' market position and diversifies revenue streams, contributing to sustainable growth.

Share Repurchase Authorization

The substantial share repurchase authorization reflects confidence in the company's growth strategy and commitment to returning value to shareholders, indicating strong financial health.

Negative Factors

High Debt Levels

While leverage has improved, high debt levels can strain financial flexibility and cash flow, potentially impacting long-term stability and investment capacity.

Motive Power Revenue Decline

The decline in Motive Power revenue highlights challenges in maintaining market share and profitability amidst external pressures, affecting long-term revenue growth.

Lower Free Cash Flow

Negative free cash flow, impacted by strategic inventory investments, may limit the company's ability to fund growth initiatives and manage debt effectively.

EnerSys Business Overview & Revenue Model

Company Description

EnerSys provides various stored energy solutions for industrial applications worldwide. It operates in three segments: Energy Systems, Motive Power, and Specialty. The company offers uninterruptible power systems applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, renewable, and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. It also provides motive power products that are used to provide power for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications. In addition, the company offers mining equipment, diesel locomotive starting, and other rail equipment. Further, it provides specialty batteries for starting, lighting, and ignition applications in transportation; and energy solutions for satellites, military aircraft, submarines, ships, and other tactical vehicles, as well as medical and security systems. Additionally, the company offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. The company sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was incorporated in 2000 and is headquartered in Reading, Pennsylvania.

How the Company Makes Money

EnerSys generates revenue primarily through the sale of its battery products and energy solutions across various sectors. Key revenue streams include the sale of lead-acid and lithium-ion batteries, which are utilized in applications such as forklifts, telecommunications, and renewable energy systems. Additionally, the company earns income from associated services, including battery maintenance, installation, and support. Strategic partnerships with major players in the telecommunications and renewable energy sectors enhance EnerSys's market reach and contribute to its earnings by providing integrated solutions that meet customer demands for reliable energy storage and management.

EnerSys Financial Statement Overview

Summary

EnerSys exhibits a strong financial position with consistent revenue growth, improving margins, and efficient capital structure management. Despite a notable decline in free cash flow, the company maintains overall financial stability and profitability, supported by robust equity and manageable debt levels.

Income Statement

EnerSys has demonstrated strong revenue growth with a 0.99% increase in the most recent year. The gross profit margin improved to 30.20%, and the net profit margin increased to 10.06%, showcasing a solid profit trajectory. EBIT and EBITDA margins also showed improvements at 12.85% and 15.44%, respectively, indicating efficient operational management.

Balance Sheet

The company's debt-to-equity ratio stands at 0.63, indicating a moderate leverage level. The return on equity (ROE) improved to 18.98%, reflecting better profitability on equity. The equity ratio is 48.25%, suggesting a balanced capital structure with sufficient equity backing.

Cash Flow

Free cash flow saw a significant decrease of 62.42% from the previous year, but the operating cash flow to net income ratio remains healthy at 0.72. The free cash flow to net income ratio is 0.38, indicating that the company generates adequate free cash flow relative to its net income despite recent declines.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.66B	3.62B	3.58B	3.71B	3.36B	2.98B
Gross Profit	1.11B	1.09B	982.89M	840.82M	750.00M	739.10M
EBITDA	524.05M	558.57M	441.13M	366.61M	307.59M	304.95M
Net Income	351.08M	363.74M	269.10M	175.81M	143.91M	143.37M
Balance Sheet
Total Assets	4.11B	3.97B	3.47B	3.62B	3.74B	3.46B
Cash, Cash Equivalents and Short-Term Investments	346.66M	343.13M	333.32M	346.67M	402.49M	451.81M
Total Debt	1.30B	1.20B	914.26M	1.16B	1.30B	1.00B
Total Liabilities	2.24B	2.05B	1.71B	2.01B	2.24B	1.92B
Stockholders Equity	1.86B	1.92B	1.75B	1.60B	1.49B	1.54B
Cash Flow
Free Cash Flow	132.95M	139.26M	370.59M	191.17M	-139.63M	288.36M
Operating Cash Flow	250.87M	260.30M	457.03M	279.94M	-65.58M	358.38M
Investing Cash Flow	-330.82M	-336.39M	-92.48M	-44.80M	-69.23M	-65.04M
Financing Cash Flow	65.29M	90.27M	-370.56M	-270.45M	98.43M	-188.72M

EnerSys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 109.88 is above the 20-day moving average (MA) of 106.32, above the 50-day MA of 99.55, and above the 200-day MA of 93.55, indicating a bullish trend. The MACD of 3.26 indicates Positive momentum. The RSI at 66.28 is Neutral, neither overbought nor oversold. The STOCH value of 53.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENS.

EnerSys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	80 Outperform	$4.11B	12.51	19.13%	0.89%	3.73%	32.29%
POWL	80 Outperform	3.54B	20.39	29.48%	0.38%	14.32%	33.76%
ENR	73 Outperform	1.81B	7.63	137.39%	4.65%	1.15%	2358.45%
AEIS	69 Neutral	6.43B	77.48	6.67%	0.24%	8.49%	-7.65%
ATKR	67 Neutral	2.05B	19.60	7.67%	2.15%	-12.09%	-78.18%
EOSE	56 Neutral	2.97B	-2.01	77.98%	―	128.49%	-697.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

EnerSys Corporate Events

EnerSys Announces Dividend Increase and Stock Buyback

On August 6, 2025, EnerSys announced a 9% increase in its quarterly cash dividend and a new $1 billion stock repurchase authorization, reflecting its commitment to returning value to shareholders. The company reported a 5% increase in net sales for the first quarter of fiscal 2026, driven by strategic acquisitions and market recovery, while also implementing a cost-saving initiative to enhance long-term growth.

EnerSys Holds Annual Meeting of Stockholders

On July 31, 2025, EnerSys held its Annual Meeting of Stockholders where several key proposals were voted on. The stockholders elected director nominees Howard I. Hoffen, Shawn M. O’Connell, and Ronald P. Vargo to the Board of Directors. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026, was ratified. Furthermore, the advisory vote to approve the compensation of EnerSys’ named executive officers was also passed.

EnerSys Announces Strategic Restructuring Plan

On July 22, 2025, EnerSys announced a strategic restructuring plan under new leadership, which includes a workforce reduction of approximately 11% of its non-production global workforce, affecting around 575 employees primarily in corporate and management positions. This plan is aimed at aligning resources with business priorities and long-term objectives, with expected annualized savings of $80 million starting in fiscal year 2026. The restructuring is anticipated to be completed by the end of the second quarter of fiscal 2026, with one-time charges estimated between $15 million and $20 million. The company aims to optimize operations and deliver greater value to customers and shareholders, although there are risks associated with the restructuring efforts potentially impacting operations and employee morale.

EnerSys Announces Dividend and CEO Transition

On May 21, 2025, EnerSys announced a quarterly cash dividend of $0.24 per share, payable on June 27, 2025. The company reported strong financial results for the fourth quarter of fiscal 2025, with a 7% increase in net sales and a 63% rise in diluted EPS. EnerSys also highlighted its strategic growth in the defense market and its expansion of high-margin maintenance-free offerings. David Shaffer retired as CEO on May 22, 2025, with Shawn O’Connell named as his successor.