EnerSys (ENS) AI Stock Analysis

• Market Cap: $3.51B
• Dividend Yield: 1.07%
• Average Volume (3M): 417.83K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.09
• Revenue Growth: -2.94%
• EPS Growth: 22.32%
• Country: US
• Employees: 10,797
• Sector: Industrials
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.97
• Shares Outstanding: 39,196,217
• 10 Day Avg. Volume: 504,810
• 30 Day Avg. Volume: 417,827
• PEG Ratio: 0.77
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.55
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: 2.38
• 1Y Price Target: $110.50
• Price Target Upside: 22.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: ―

EnerSys' overall stock score is driven by its solid financial performance and positive earnings outlook, reflecting strong profitability, strategic growth initiatives, and efficient management. However, the technical analysis indicates a bearish trend, suggesting potential short-term headwinds. The stock's valuation is attractive, with a low P/E ratio and modest dividend yield, offering potential value opportunities. Despite some external challenges, EnerSys appears well-positioned for future growth.

Positive Factors

Profitability

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

Tax Benefits

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

Negative Factors

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.

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 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.

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.

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.

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	982.89M	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
463.16M	333.32M	346.67M	402.49M	451.81M	326.98M
	Total Assets
4.03B	3.47B	3.62B	3.74B	3.46B	3.30B
	Total Debt
1.30B	914.26M	1.16B	1.30B	1.00B	1.22B
	Net Debt
839.49M	580.94M	814.10M	896.01M	552.63M	897.21M
	Total Liabilities
2.18B	1.71B	2.01B	2.24B	1.92B	2.00B
	Stockholders Equity
1.84B	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

• Technical Analysis Sentiment: Neutral
• Last Price: 89.86
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 89.86 is above the 20-day moving average (MA) of 89.04, above the 50-day MA of 87.64, and below the 200-day MA of 94.96, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 91.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ENS.

EnerSys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POWL	80 Outperform	$2.24B	13.06	37.08%	0.58%	27.43%	67.93%
AEIS	74 Outperform	$4.78B	65.58	6.36%	0.32%	0.06%	-28.32%
ATKR	73 Outperform	$2.38B	13.60	12.73%	1.87%	-12.02%	-67.69%
ENS	67 Neutral	$3.51B	9.97	19.82%	1.07%	-2.94%	22.32%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
ENR	58 Neutral	$1.62B	30.61	33.46%	5.35%	0.39%	-37.01%
EOSE	43 Neutral	$1.00B	―	125.43%	―	37.60%	-161.38%

EnerSys Corporate Events

EnerSys Announces Leadership Change with New CTO

On March 26, 2025, EnerSys announced the separation of employment with Joern Tinnemeyer, the Senior Vice President and Chief Technology Officer. Concurrently, Mark Matthews, President of Specialty Global, was appointed as Acting Chief Technology Officer, indicating a strategic shift in leadership roles within the company.