EnerSys (ENS) AI Stock Analysis

• Market Cap: $3.59B
• Dividend Yield: 1.03%
• Average Volume (3M): 427.15K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.10
• Revenue Growth: 1.00%
• EPS Growth: 38.51%
• Country: US
• Employees: 10,797
• Sector: Industrials
• Sector Strength: 94
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.97
• Shares Outstanding: 38,593,212
• 10 Day Avg. Volume: 323,971
• 30 Day Avg. Volume: 427,154
• PEG Ratio: 0.85
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.98
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: 2.17
• 1Y Price Target: $110.50
• Price Target Upside: 18.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 80 Outperform
• Price Target: $104.00 ▲(11.80%Upside)

EnerSys is well-positioned with strong financial performance and valuation metrics. The company's proactive management of challenges like tariffs and strategic restructuring support a positive outlook. Technical indicators suggest moderate momentum, contributing to the stock's upward potential.

Positive Factors

Financial Performance

Profitability remains resilient as management leans into several cost levers in a choppy order environment.

Revenue Growth

EnerSys reported solid fourth-quarter results, with revenue up 7% and EPS up 43%.

Tax Credits

The updated tax rate assumption more accurately reflects the benefit the company expects to receive from the tax credits.

Negative Factors

Earnings Guidance

The stock was down ~17% by midday as management paused FY2026 guidance due to the policy environment while FY1Q26 adjusted EPS guidance came in lower than expected.

Order Volume

Forklift battery orders were soft in the fourth quarter.

Revenue Forecast

The first-quarter revenue forecast fell well short of consensus.

EnerSys Business Overview & Revenue Model

Company Description

EnerSys (ENS) is a global leader in stored energy solutions for industrial applications. The company operates across various sectors, including telecommunications, aerospace, defense, and industrial equipment. EnerSys provides a comprehensive range of batteries, chargers, and accessories, as well as energy systems for motive power, reserve power, and specialty applications.

How the Company Makes Money

EnerSys generates revenue primarily through the manufacturing and sale of its extensive portfolio of energy storage products and systems. The company's key revenue streams include the sale of batteries for industrial applications, such as forklifts and other material handling equipment, and reserve power solutions for telecommunications, data centers, and other critical infrastructure. EnerSys also offers related products like battery chargers and accessories, as well as integrated systems for energy management. Additionally, the company benefits from long-term relationships and contracts with major industrial and commercial clients, which help drive consistent revenue. EnerSys's global presence and wide range of applications ensure a diversified income stream, supported by ongoing investments in research and development to innovate and maintain its leadership in the energy solutions market.

EnerSys Financial Statement Overview

Summary

EnerSys exhibits strong revenue growth and improving profit margins. Despite a decline in free cash flow, the company maintains a solid financial position with a balanced capital structure 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.62B	3.58B	3.71B	3.36B	2.98B
Gross Profit	1.09B	982.89M	840.82M	750.00M	739.10M
EBITDA	558.57M	441.13M	366.61M	307.59M	304.95M
Net Income	363.74M	269.10M	175.81M	143.91M	143.37M
Balance Sheet
Total Assets	3.97B	3.47B	3.62B	3.74B	3.46B
Cash, Cash Equivalents and Short-Term Investments	343.13M	333.32M	346.67M	402.49M	451.81M
Total Debt	1.20B	914.26M	1.16B	1.30B	1.00B
Total Liabilities	2.05B	1.71B	2.01B	2.24B	1.92B
Stockholders Equity	1.92B	1.75B	1.60B	1.49B	1.54B
Cash Flow
Free Cash Flow	139.26M	370.59M	191.17M	-139.63M	288.36M
Operating Cash Flow	260.30M	457.03M	279.94M	-65.58M	358.38M
Investing Cash Flow	-336.39M	-92.48M	-44.80M	-69.23M	-65.04M
Financing Cash Flow	90.27M	-370.56M	-270.45M	98.43M	-188.72M

EnerSys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 93.02 is above the 20-day moving average (MA) of 88.67, above the 50-day MA of 88.28, and below the 200-day MA of 93.11, indicating a neutral trend. The MACD of 1.19 indicates Negative momentum. The RSI at 62.67 is Neutral, neither overbought nor oversold. The STOCH value of 91.60 is Negative, 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	$3.59B	10.49	19.82%	1.03%	1.00%	38.51%
POWL	77 Outperform	$2.90B	16.52	37.08%	0.44%	27.43%	67.93%
ATKR	77 Outperform	$2.64B	15.01	12.73%	1.64%	-12.02%	-67.69%
AEIS	76 Outperform	$5.31B	73.81	6.36%	0.28%	0.06%	-28.32%
Sector *	67 Neutral	£2.85B	10.42	4.69%	215.06%	2.73%	-20.56%
ENR	66 Neutral	$1.72B	33.11	33.46%	5.03%	0.39%	-37.01%
EOSE	54 Neutral	$1.54B	―	125.43%	―	37.60%	-161.38%

EnerSys Corporate Events

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.

The most recent analyst rating on (ENS) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on EnerSys stock, see the ENS Stock Forecast page.

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.

The most recent analyst rating on (ENS) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on EnerSys stock, see the ENS Stock Forecast page.