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Enersys (ENS)
NYSE:ENS
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EnerSys
(NYSE:ENS)
Rating:73Outperform
Price Target:
$96.00
▲(6.41%Upside)
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 and Forecast
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.
Revenue Forecast
The first-quarter revenue forecast fell well short of consensus.
EnerSys (ENS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.47B
Dividend Yield1.07%
Average Volume (3M)569.78K
Price to Earnings (P/E)10.0
Beta (1Y)1.10
Revenue Growth1.00%
EPS Growth38.51%
CountryUS
Employees10,797
SectorIndustrials
Sector Strength86
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)2.97
Shares Outstanding38,593,212
10 Day Avg. Volume487,381
30 Day Avg. Volume569,785
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)1.80
Price to Sales (P/S)0.00
P/FCF Ratio24.04
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit3.85
Enterprise Value/Ebitda2.19
Forecast
1Y Price Target
$110.50Price Target Upside22.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EnerSys Business Overview & Revenue Model
Company DescriptionEnerSys (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 MoneyEnerSys 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 Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q4-2025)
| % Change Since: -5.27%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
EnerSys demonstrated strong financial performance with record earnings and revenue growth, significant progress in maintenance-free products, and robust contributions from acquisitions. However, the company faces challenges with tariff exposure, delays in tax refunds, and market uncertainty affecting future guidance, particularly in the Motive Power and Transportation segments.Q4-2025 Updates
Positive Updates
Record Adjusted Diluted EPS and Revenue Growth
EnerSys delivered record adjusted diluted EPS of $1.86, excluding 45x benefits, and grew revenue by 7%, marking the second highest revenue quarter ever.
Motive Power Margins and Maintenance-Free Products
Record motive power margins were achieved with maintenance-free products reaching a record 29% of segment sales, contributing to a 15% earnings growth on similar volumes compared to the prior year.
Specialty Segment Growth
The Specialty segment benefited from sustained strengths in Aerospace and Defense markets and outperformance from the Brentronics acquisition, with Brentronics contributing a 22% positive impact.
Energy Systems Segment Performance
Energy Systems nearly doubled adjusted operating earnings with a 22% year-over-year increase in quarterly data center revenue and signs of recovery in U.S. communications spending.
Strong Cash Flow and Balance Sheet
EnerSys generated positive operating cash flow of $135 million, resulting in free cash flow of $105 million. The company ended the year with $343 million of cash and cash equivalents.
Negative Updates
Tariff Exposure and Uncertainty
EnerSys faces approximately $92 million in direct tariff exposure, down from $160 million prior, with potential near-term friction in Q1 due to stranded tariffs that can't be passed on to customers.
Challenges in Motive Power and Transportation
Motive Power volumes are expected to be pressured by seasonality and tariff disruptions, with Q4 orders down 14% year over year and lower starting backlog than both a year ago and last quarter.
Delay in US Tax Refund
EnerSys has not yet received a $107 million US tax refund expected in Q4, attributed to IRS staffing issues, although interest will accrue on the delayed refund.
Supply Chain and Tariff-Related Disruptions
The company faces volatility and uncertainty due to evolving tariff and macroeconomic dynamics, leading to a temporary pause in quantified full-year guidance.
Company Guidance
In the EnerSys fourth-quarter and full-year fiscal 2025 earnings call, the company reported a strong performance with a 7% revenue growth, reaching $975 million in the fourth quarter, marking it as their second-highest revenue quarter ever. They achieved a record adjusted diluted EPS of $1.86, excluding 45x benefits, and an impressive adjusted gross margin of 31.2%, up 320 basis points year-over-year. The company highlighted significant growth in their Energy Systems segment with a 22% increase in data center revenue and a substantial margin expansion, nearly doubling adjusted operating earnings. Motive Power also showed robust performance with a 15% earnings growth, driven by increased sales of maintenance-free products, which reached a record 29% of segment sales. Specialty segment revenues increased by 21%, supported by the Brentronics acquisition. For the fiscal year 2025, EnerSys reported total revenue of $3.6 billion, with adjusted operating earnings of $528 million, including $185 million in IRC45x tax credits. The company remains committed to navigating the challenging macroeconomic environment and is focused on mitigating tariff impacts while maintaining a strong balance sheet with net leverage at 1.3 times EBITDA. Looking ahead, EnerSys expects first-quarter fiscal 2026 net sales to range between $830 million to $870 million, with an adjusted diluted EPS of $2.03 to $2.13, including $35 million to $40 million of 45x benefits.EnerSys Financial Statement Overview
Summary
EnerSys exhibits a strong financial position with consistent revenue growth, improving margins, and efficient capital structure management. However, a notable decline in free cash flow slightly tempers the overall assessment.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.85
Very Positive
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.78
Positive
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.72
Positive
| 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
Positive
90.22
Price Trends
88.28
Positive
91.08
Negative
93.87
Negative
Market Momentum
0.17
Negative
59.57
Neutral
92.29
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 90.22 is above the 20-day moving average (MA) of 86.56, above the 50-day MA of 88.28, and below the 200-day MA of 93.87, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 92.29 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.63B | 15.30 | 37.08% | 0.49% | 27.43% | 67.93% | |
76 Outperform | $5.18B | 71.08 | 6.36% | 0.29% | 0.06% | -28.32% | |
74 Outperform | $2.53B | 14.50 | 12.73% | 1.75% | -12.02% | -67.69% | |
73 Outperform | $3.47B | 10.00 | 19.82% | 1.07% | 1.00% | 38.51% | |
61 Neutral | C$6.52B | 9.25 | 3.44% | 2.88% | 6.99% | -11.09% | |
57 Neutral | $1.56B | 29.47 | 33.46% | 5.56% | 0.39% | -37.01% | |
55 Neutral | $1.21B | ― | 125.43% | ― | 37.60% | -161.38% |
* Industrials Sector Average
Performance Comparison
ENS
EnerSys
90.22
-9.30
-9.34%
AEIS
Advanced Energy
138.14
32.06
30.22%
ENR
Energizer Holdings
21.51
-6.67
-23.67%
POWL
Powell Industries
217.66
73.46
50.94%
ATKR
Atkore International Group
75.14
-53.68
-41.67%
EOSE
Eos Energy Enterprises
5.08
3.16
164.58%
EnerSys Corporate Events
Executive/Board ChangesDividendsBusiness Operations and StrategyFinancial Disclosures
EnerSys Announces Dividend and CEO Transition
Positive
May 21, 2025
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.
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.