EnerSys (ENS)
NYSE:ENS
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EnerSys
(NYSE:ENS)
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Rating:80Outperform
Price Target:
$275.00
▲(38.19% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by strong financial quality (deleveraging and strong free cash flow) and supportive technical momentum (price above key moving averages with positive MACD). Valuation is less compelling given a mid-20s P/E and low yield, while the latest call was broadly positive but tempered by volume weakness and cost pressures and some reliance on 45X benefits.
Positive Factors
Deleveraged balance sheet
A dramatic reduction in debt to near-zero leverage materially improves financial flexibility. Low debt-to-equity and rising equity allow durable investment in capex, M&A or buybacks, reduce refinancing risk, and provide a buffer through cyclical demand downturns over the next 2–6 months and beyond.
Negative Factors
End‑market volume weakness
Sustained volume declines in Motive Power and transportation undermine operating leverage and compress margins. Lower unit demand reduces fixed-cost absorption and can persist across equipment replacement cycles, creating multi‑quarter headwinds to revenue and earnings recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraged balance sheet
A dramatic reduction in debt to near-zero leverage materially improves financial flexibility. Low debt-to-equity and rising equity allow durable investment in capex, M&A or buybacks, reduce refinancing risk, and provide a buffer through cyclical demand downturns over the next 2–6 months and beyond.
Read all positive factors
EnerSys (ENS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.72B
Dividend Yield0.67%
Average Volume (3M)334.67K
Price to Earnings (P/E)22.2
Beta (1Y)1.17
Revenue Growth3.70%
EPS Growth-14.17%
CountryUS
Employees10,797
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)7.84
Shares Outstanding36,517,773
10 Day Avg. Volume458,262
30 Day Avg. Volume334,665
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 Cap0.93
Enterprise Value/Revenue2.15
Enterprise Value/Gross Profit7.35
Enterprise Value/Ebitda13.52
Forecast
1Y Price Target
$257.50Price Target Upside29.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)11.75
Revenue Forecast (FY)$3.86B
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 comp...
How the Company Makes Money
EnerSys makes money primarily by selling stored-energy products and related services to industrial and infrastructure customers. A core revenue stream is the manufacture and sale of batteries and battery systems (including both lead-acid and lithi...
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 | 426.46M | 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
Positive
199.00
Price Trends
197.18
Positive
182.68
Positive
151.84
Positive
Market Momentum
9.03
Positive
64.94
Neutral
36.88
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 199 is below the 20-day moving average (MA) of 221.99, above the 50-day MA of 197.18, and above the 200-day MA of 151.84, indicating a bullish trend. The MACD of 9.03 indicates Positive momentum. The RSI at 64.94 is Neutral, neither overbought nor oversold. The STOCH value of 36.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENS.
EnerSys Risk Analysis
EnerSys disclosed 39 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $9.86B | 35.75 | 28.61% | 0.32% | 4.50% | 7.18% | |
80 Outperform | $8.72B | 22.16 | 15.60% | 0.67% | 3.70% | -14.17% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $1.18B | 27.84 | 116.90% | 6.02% | 2.71% | 266.27% | |
53 Neutral | $2.77B | 0.83 | 41.50% | ― | 725.76% | 20.97% | |
53 Neutral | $1.37B | -8.17 | -0.28% | ― | 49.88% | 27.54% | |
51 Neutral | $5.27B | -3.20 | -139.28% | ― | 15.19% | 42.87% |
* Industrials Sector Average
ENS
EnerSys
232.24
152.68
191.92%
ENR
Energizer Holdings
18.18
-3.41
-15.81%
PLUG
Plug Power
3.78
3.00
384.62%
POWL
Powell Industries
279.22
221.15
380.79%
EOSE
Eos Energy Enterprises
8.06
1.68
26.33%
ENVX
Enovix
6.68
-1.09
-14.03%
EnerSys Corporate Events
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...
Business Operations and Strategy
EnerSys Restructures Operations, Shifts Production to Missouri
Negative
Mar 25, 2026
On March 25, 2026, EnerSys announced a strategic restructuring of its manufacturing footprint, closing its legacy lead‑acid battery plant in Tijuana, Mexico and shifting most of that output to its advanced Thin Plate Pure Lead facility in Sp...
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.