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EnerSys
(NYSE:ENS)
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Rating:73Outperform
Price Target:
$224.00
▲(17.43% Upside)
Action:Reiterated
Date:07/24/26
The score is driven primarily by strong financial performance (notably deleveraging and improved free cash flow) and a supportive earnings outlook with cost actions and capital returns. These positives are tempered by weak technical momentum and a valuation that is not cheap relative to the modest dividend yield.
Positive Factors
Deleveraged balance sheet
EnerSys materially reduced leverage in 2026, cutting debt to roughly $29M from ~$1.2B. That durable de-risking expands financial flexibility for capex, defense plant funding, buybacks and M&A, lowers interest exposure, and meaningfully reduces balance-sheet risk over the next several quarters.
Negative Factors
Reliance on IRC 45X tax benefits
A sizable portion of FY26 operating profit and EPS derives from one-time 45X credits. If timing, eligibility or policy changes occur, reported margins and headline earnings could revert materially, making underlying organic profitability and margin sustainability less certain over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraged balance sheet
EnerSys materially reduced leverage in 2026, cutting debt to roughly $29M from ~$1.2B. That durable de-risking expands financial flexibility for capex, defense plant funding, buybacks and M&A, lowers interest exposure, and meaningfully reduces balance-sheet risk over the next several quarters.
Read all positive factors
EnerSys (ENS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.43B
Dividend Yield0.57%
Average Volume (3M)549.05K
Price to Earnings (P/E)23.4
Beta (1Y)1.19
Revenue Growth3.70%
EPS Growth-14.17%
CountryUS
Employees9,682
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)7.84
Shares Outstanding36,456,127
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
$265.00Price Target Upside38.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)12.06
Revenue Forecast (FY)$3.91B
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:May 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented multiple material operating and financial achievements: record adjusted EPS (both including and excluding 45X), all‑time high full‑year revenue of $3.8 billion, strong free cash flow, reduced net debt and low leverage, meaningful cost and footprint actions with projected savings, and improving order trends (Q4 book-to-bill 1.1x). Offsetting these positives were ongoing volume softness (notably in Motive Power and transportation), gross margin pressure from tariffs/freight and inflation (~$20M impact), short‑term geopolitical cost pressures, and some reliance on IRC 45X tax benefits for headline results. Management articulated clear operational actions, buybacks, and product commercialization roadmaps with cautious optimism for recovery across key end markets. On balance, the highlights and company progress outweigh the challenges.Positive Updates
Record Adjusted EPS and Strong Earnings
Q4 record adjusted diluted EPS of $3.19, up 7% year-over-year; excluding IRC 45X benefit adjusted EPS was $1.96, up 5% year-over-year. Full year adjusted diluted EPS was $10.56 (+4% year-over-year); excluding 45X full-year adjusted EPS was a record $6.41 (+$0.82 vs prior year).
Negative Updates
Volume Weakness and Organic Decline
Q4 organic volume decreased 6% year-over-year (total net sales up only 1% in Q4 due to +4% price/mix and +3% FX offsetting volume decline). Company cited softness in electric forklift and transportation markets.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Adjusted EPS and Strong Earnings
Q4 record adjusted diluted EPS of $3.19, up 7% year-over-year; excluding IRC 45X benefit adjusted EPS was $1.96, up 5% year-over-year. Full year adjusted diluted EPS was $10.56 (+4% year-over-year); excluding 45X full-year adjusted EPS was a record $6.41 (+$0.82 vs prior year).
Read all positive updates
Company Guidance
For Q1 FY2027 EnerSys guided net sales of $915 million to $955 million and adjusted diluted EPS of $2.80 to $2.90 per share (which incorporates $42 million to $47 million of IRC 45X tax-credit benefits to cost of sales); excluding 45X they expect adjusted diluted EPS of $1.61 to $1.71. For fiscal 2027 the company expects adjusted operating earnings growth (excluding 45X) to outpace revenue growth, a full‑year adjusted tax rate (as adjusted before 45X) of about 21.5%–23.5%, and capital expenditures of roughly $70 million. Management cited a strong balance sheet and liquidity (cash $440M, net debt $684M, leverage ~1.1x, $876M buyback authorization) and pointed to FY26 results (net sales $3.8B, adjusted diluted EPS $10.56 / $6.41 excluding 45X, and free cash flow $468M) as the base from which they expect the FY27 improvements to be delivered.EnerSys Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
88
Very Positive
Cash Flow
81
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.75B | 3.62B | 3.58B | 3.71B | 3.36B |
| Gross Profit | 1.10B | 1.09B | 982.89M | 840.14M | 749.97M |
| EBITDA | 511.46M | 558.57M | 434.16M | 361.32M | 307.59M |
| Net Income | 293.56M | 363.74M | 269.10M | 175.81M | 143.91M |
Balance Sheet | |||||
| Total Assets | 4.00B | 3.97B | 3.47B | 3.62B | 3.74B |
| Cash, Cash Equivalents and Short-Term Investments | 438.68M | 343.13M | 333.32M | 346.67M | 402.49M |
| Total Debt | 1.19B | 1.20B | 914.26M | 1.09B | 1.37B |
| Total Liabilities | 2.09B | 2.05B | 1.71B | 2.01B | 2.24B |
| Stockholders Equity | 1.91B | 1.92B | 1.75B | 1.60B | 1.49B |
Cash Flow | |||||
| Free Cash Flow | 467.52M | 139.26M | 370.59M | 191.17M | -139.63M |
| Operating Cash Flow | 547.60M | 260.30M | 457.03M | 279.94M | -65.58M |
| Investing Cash Flow | -87.88M | -336.39M | -92.48M | -44.80M | -69.23M |
| Financing Cash Flow | -380.70M | 90.27M | -370.56M | -270.45M | 98.43M |
EnerSys Technical Analysis
Negative
190.75
Price Trends
215.75
Negative
204.49
Negative
177.63
Positive
Market Momentum
-6.85
Positive
37.47
Neutral
47.37
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 below the 20-day moving average (MA) of 197.24, below the 50-day MA of 215.75, and above the 200-day MA of 177.63, indicating a neutral trend. The MACD of -6.85 indicates Positive momentum. The RSI at 37.47 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.79B | 39.00 | 28.61% | 0.15% | 4.50% | 7.18% | |
73 Outperform | $6.43B | 23.41 | 15.60% | 0.55% | 3.70% | -14.17% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $1.47B | 7.89 | 116.90% | 5.73% | 2.71% | 266.27% | |
49 Neutral | $1.11B | -0.77 | 41.51% | ― | 725.76% | 20.97% | |
49 Neutral | $802.80M | -4.84 | -67.92% | ― | 49.88% | 27.54% | |
48 Neutral | $2.65B | -1.38 | -139.28% | ― | 15.19% | 42.87% |
* Industrials Sector Average
ENS
EnerSys
184.75
96.17
108.57%
ENR
Energizer Holdings
21.03
0.16
0.78%
PLUG
Plug Power
2.09
0.69
49.29%
POWL
Powell Industries
209.30
133.62
176.56%
EOSE
Eos Energy Enterprises
3.61
-1.90
-34.48%
ENVX
Enovix
4.18
-6.52
-60.93%
EnerSys Corporate Events
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.