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EnerSys
(NYSE:ENS)
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Rating:74Outperform
Price Target:
$228.00
▲(19.53% Upside)
Action:Reiterated
Date:08/17/26
ENS scores well primarily on strong financial performance (improving margins, improving leverage, and very strong recent free cash flow/cash conversion). The earnings call supports the score with constructive guidance and strategic progress, though one-time benefits and material-handling softness temper confidence. Technicals are mixed with a negative MACD and the stock below key intermediate moving averages, while valuation looks only moderate with a low dividend yield.
Positive Factors
Strong cash generation and improving leverage
Robust cash conversion gives EnerSys funding for investment, debt reduction and shareholder returns. Lower net debt and roughly 0.8x EBITDA leverage improve resilience, while the service and aftermarket model can support cash generation across customer cycles.
Negative Factors
Soft material-handling demand
Material handling remains a significant business, so weaker volumes directly reduce operating leverage and earnings quality. Management expects recovery later in the fiscal year, but uncertain timing and choppy lithium conversion could delay durable volume and mix improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and improving leverage
Robust cash conversion gives EnerSys funding for investment, debt reduction and shareholder returns. Lower net debt and roughly 0.8x EBITDA leverage improve resilience, while the service and aftermarket model can support cash generation across customer cycles.
Read all positive factors
EnerSys (ENS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.99B
Dividend Yield0.55%
Average Volume (3M)549.05K
Price to Earnings (P/E)19.9
Beta (1Y)1.17
Revenue Growth3.73%
EPS Growth7.60%
CountryUS
Employees9,682
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)9.55
Shares Outstanding36,065,224
10 Day Avg. Volume395,145
30 Day Avg. Volume549,053
Financial Highlights & Ratios
PEG Ratio-1.55
Price to Book (P/B)3.41
Price to Sales (P/S)1.73
P/FCF Ratio13.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$240.00Price Target Upside25.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)13.18
Revenue Forecast (FY)$3.90B
EnerSys Business Overview & Revenue Model
Company Description
EnerSys engages in the provision of stored energy solutions for industrial applications worldwide. The company operates in four segments: Energy Systems, Motive Power, Specialty, and New Ventures. The Energy Systems segment offers uninterruptible ...
How the Company Makes Money
EnerSys makes money primarily by selling stored energy products and related services to industrial and infrastructure customers. A major revenue stream is the sale of motive power solutions—batteries, chargers, and fleet energy management products...
EnerSys Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: record-quarter results, strong margin expansion, exceptional free cash flow, reduced net debt, strategic product approvals and a DOE-backed U.S. lithium plant. These substantial positives were partially tempered by softness in Industrial Mobility Solutions (material handling), reliance on certain one-time benefits (tariff and tax refunds, 45X plant transition gains) and timing/execution risks related to a major future capital investment. Management communicated confidence in recovery timing for material handling and in commercialization of lithium offerings, but some near-term volatility and one-offs moderate the outlook.Positive Updates
Record Quarter Across Key Financial Metrics
Net sales of $936M, up 5% year-over-year; gross profit $313M, up $60M or 24% YoY; gross margin 33.5%, up 510 basis points (180 bps ex-tariff refunds). Adjusted operating earnings rose 47% YoY and adjusted diluted EPS increased 65% YoY (noting one-time tariff and 45X impacts).
Negative Updates
Industrial Mobility Solutions (IMS) Weakness
IMS revenue declined 3% YoY to $407M; adjusted operating earnings fell 11% YoY to $38M and adjusted operating margin declined 70 bps to 9.3%, driven by lower material handling volumes and loss of operating leverage on reduced volumes.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Quarter Across Key Financial Metrics
Net sales of $936M, up 5% year-over-year; gross profit $313M, up $60M or 24% YoY; gross margin 33.5%, up 510 basis points (180 bps ex-tariff refunds). Adjusted operating earnings rose 47% YoY and adjusted diluted EPS increased 65% YoY (noting one-time tariff and 45X impacts).
Read all positive updates
Company Guidance
EnerSys guided Q2 FY‑2027 net sales of $955–$995 million and adjusted diluted EPS of $3.15–$3.25 (which assumes $42–$47 million of 45X benefits to cost of sales); excluding 45X they expect adjusted diluted EPS of $1.95–$2.05 (about +25% y/y at the midpoint), with the EPS midpoint including 45X up ~21% y/y. For the year they expect an as‑adjusted tax rate before 45X of 21.5%–23.5% and reiterated FY‑2027 CapEx of ~$70 million. On the lithium plant they disclosed an estimated $650 million facility cost with a ~$150 million DOE grant and ~ $200 million of state/county incentives, leaving EnerSys net investment of ~ $500 million (to be funded from operating cash flow), construction slated to begin H1 FY‑2028 with full production ~3 years later and an expected internal return in the mid‑20s. Management also said they expect stronger revenue growth in H2 FY‑2027 (driven by recovery in material handling and new product revenue), reaffirmed strong cash‑flow generation and capital returns (Q1 free cash flow $218M and 187% conversion, Q1 buybacks 219k shares for $50M with ~ $900M remaining authorization, Q2 dividend $0.2875/share), and noted one‑time Q1 items (tariff refunds ~$31M and a $115M federal tax refund) that bolstered near‑term cash but were not in prior guidance.EnerSys Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.79B | 3.75B | 3.62B | 3.58B | 3.71B | 3.36B |
| Gross Profit | 1.16B | 1.10B | 1.09B | 982.89M | 840.14M | 749.97M |
| EBITDA | 583.70M | 511.46M | 558.57M | 434.16M | 361.32M | 307.59M |
| Net Income | 352.45M | 293.56M | 363.74M | 269.10M | 175.81M | 143.91M |
Balance Sheet | ||||||
| Total Assets | 3.96B | 4.00B | 3.97B | 3.47B | 3.62B | 3.74B |
| Cash, Cash Equivalents and Short-Term Investments | 530.66M | 438.68M | 343.13M | 333.32M | 346.67M | 402.49M |
| Total Debt | 1.04B | 1.19B | 1.20B | 914.26M | 1.09B | 1.37B |
| Total Liabilities | 1.98B | 2.09B | 2.05B | 1.71B | 2.01B | 2.24B |
| Stockholders Equity | 1.97B | 1.91B | 1.92B | 1.75B | 1.60B | 1.49B |
Cash Flow | ||||||
| Free Cash Flow | 717.31M | 467.52M | 139.26M | 370.59M | 191.17M | -139.63M |
| Operating Cash Flow | 776.79M | 547.60M | 260.30M | 457.03M | 279.94M | -65.58M |
| Investing Cash Flow | -58.81M | -87.88M | -336.39M | -92.48M | -44.80M | -69.23M |
| Financing Cash Flow | -530.45M | -380.70M | 90.27M | -370.56M | -270.45M | 98.43M |
EnerSys Technical Analysis
Negative
190.75
Price Trends
204.23
Negative
208.40
Negative
182.95
Positive
Market Momentum
-1.67
Negative
44.74
Neutral
28.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENS, the sentiment is Negative. The current price of 190.75 is above the 20-day moving average (MA) of 190.51, below the 50-day MA of 204.23, and above the 200-day MA of 182.95, indicating a neutral trend. The MACD of -1.67 indicates Negative momentum. The RSI at 44.74 is Neutral, neither overbought nor oversold. The STOCH value of 28.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENS.
EnerSys Risk Analysis
EnerSys disclosed 38 risk factors in its most recent earnings report. EnerSys reported the most risks in the "Legal & Regulatory" 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.99B | 19.89 | 18.48% | 0.55% | 3.73% | 7.60% | |
74 Outperform | $7.22B | 37.60 | 27.51% | 0.15% | 7.04% | 8.18% | |
64 Neutral | $1.49B | 17.63 | 47.41% | 5.73% | 2.17% | -66.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $3.14B | -1.62 | -176.19% | ― | 10.59% | 41.83% | |
48 Neutral | $1.36B | -0.77 | 55.63% | ― | 533.87% | 31.49% | |
36 Underperform | $746.13M | -4.09 | -66.93% | ― | 34.88% | -18.59% |
* Industrials Sector Average
ENS
EnerSys
189.97
88.67
87.53%
ENR
Energizer Holdings
20.99
-5.92
-22.01%
PLUG
Plug Power
2.20
0.52
30.95%
POWL
Powell Industries
197.40
109.93
125.69%
EOSE
Eos Energy Enterprises
3.46
-2.86
-45.25%
ENVX
Enovix
3.27
-7.24
-68.89%
EnerSys Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
EnerSys posts record fiscal Q1 2027 earnings growth
Positive
Aug 12, 2026
On August 12, 2026, EnerSys reported first quarter fiscal 2027 results showing net sales of $935.6 million, up 4.8% year-on-year, and gross margin of 33.5%, an improvement of 510 basis points. Net earnings more than doubled to $116.5 million, or $...
Executive/Board ChangesShareholder Meetings
EnerSys Shareholders Back Board, Auditor and Pay Practices
Positive
Aug 6, 2026
On August 6, 2026, EnerSys held its Annual Meeting of Stockholders, where shareholders voted on director elections, auditor ratification, and executive compensation. Stockholders elected Caroline Chan, Steven M. Fludder, Paul J. Tufano, and Rudolp...
Business Operations and StrategyPrivate Placements and Financing
EnerSys Refines U.S. Defense-Focused Lithium-Ion Plant Plan
Positive
Jul 23, 2026
On July 23, 2026, EnerSys announced it has refined plans for its previously announced U.S. lithium‑ion cell manufacturing facility in Greenville, South Carolina, sharply reducing initial capacity to about 1 gigawatt-hour from an earlier 4...
Business Operations and StrategyExecutive/Board Changes
EnerSys Realigns Operations Into Three New Business Segments
Positive
May 28, 2026
On May 28, 2026, EnerSys announced a major realignment of its operating structure, consolidating its former four segments into three new reportable units: Network Infrastructure Solutions, Industrial Mobility Solutions and Precision Power Solutio...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
EnerSys Posts Record Results and Declares Quarterly Dividend
Positive
May 20, 2026
EnerSys reported fourth quarter and full-year fiscal 2026 results on May 20, 2026, with net sales for the quarter rising 1% to $988 million and full-year sales reaching a record $3.75 billion, up 4% from fiscal 2025. Despite GAAP diluted EPS decli...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.