EnerSys (ENS) AI Stock Analysis

• Market Cap: $6.36B
• Dividend Yield: 0.67%
• Average Volume (3M): 534.99K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 1.14
• Revenue Growth: 6.17%
• EPS Growth: 20.86%
• Country: US
• Employees: 10,797
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.77
• Shares Outstanding: 36,851,376
• 10 Day Avg. Volume: 486,506
• 30 Day Avg. Volume: 534,989
• PEG Ratio: 0.26
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 26.15
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 13.30
• 1Y Price Target: $189.67
• Price Target Upside: 9.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 10.23
• Revenue Forecast (FY): $3.75B

• Rating: 77 Outperform
• Price Target: $195.00 ▲(12.96% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by improved multi-year profitability and strong recent cash generation, supported by a constructive price trend. The latest earnings call reinforces operational momentum and disciplined capital returns, while valuation is only moderate and near-term demand/volume softness plus tariff and comparability noise temper the outlook.

Positive Factors

Margin Improvement

Material margin expansion reflects sustained operating improvements, better mix, and disciplined cost actions. Higher and more stable margins support durable profitability, underpin free cash flow generation and provide flexibility for reinvestment and shareholder returns over the next several quarters.

Strong Cash Generation

Consistently robust operating and free cash flow provides funding for capex, buybacks and dividends while allowing deleveraging. Even with some timing variability, sustained absolute FCF improves financial flexibility and supports strategic investments in batteries and services.

Strategic Product & Data Center Growth

Strong data‑center demand and progress on lithium cell initiatives signal structural exposure to secular energy storage and AI infrastructure tails. Successful product commercialization and DOE alignment could drive durable higher‑margin growth over multiple quarters.

Negative Factors

Volume Weakness

Persistent organic volume declines, especially in Motive Power and Transportation, reflect a weak cycle and deferred fleet investment. This cyclical softness can restrain revenue growth and utilization for production capacity over several quarters, delaying recovery in volume‑dependent segments.

Tariff Exposure

Meaningful annual tariff exposure creates a structural cost overhang on U.S. sourcing. If sustained, tariffs require ongoing pricing or supply‑chain shifts; pass‑through is harder on low‑margin products, which can compress margins and complicate multi‑period planning.

Comparability & Non‑Recurring Cash Items

Reliance on one‑off tax credits and receivable purchase programs inflates headline metrics and makes trend assessment harder. Such non‑recurring items can mask underlying operating cash conversion variability, creating uncertainty about the sustainability of recent high FCF rates.

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 batteries, chargers, and energy storage systems across its two main sectors—reserve power and motive power. The company also earns income through the provision of maintenance services, battery management systems, and related accessories. Key revenue streams include direct sales to customers in industries such as telecommunications, data centers, and logistics. EnerSys has established significant partnerships with major companies in various sectors, enhancing its market reach and product offerings. Additionally, the growing demand for renewable energy storage solutions and electric vehicles presents opportunities for further revenue growth.

EnerSys Financial Statement Overview

Summary

Fundamentals are strong overall: profitability has stepped up materially (FY2025 net margin ~10% vs. ~4–5% in FY2021–FY2022) and TTM revenue growth is strong (+34.8%) with solid absolute free cash flow (~$441M). Offsetting this, revenue and cash conversion have been uneven across periods, and a large reported total-debt swing from FY2025 to TTM reduces balance-sheet comparability.

Income Statement

Profitability has improved meaningfully over time: net margin rose from ~4–5% (FY2021–FY2022) to ~10% in FY2025, supported by stronger operating profitability (EBIT margin ~12–13% in FY2025 vs. ~6–7% in FY2022). TTM (Trailing-Twelve-Months) revenue growth is strong (+34.8%), but the trajectory is uneven (FY2024 revenue declined ~3.4%, FY2025 was ~flat), and TTM net margin (~9.1%) is below FY2025 (~10.1%), indicating some recent normalization.

Balance Sheet

The balance sheet looks solid with healthy shareholder equity (~$1.9B) and strong returns on equity (mid-to-high teens in FY2024–FY2025; ~18% in TTM (Trailing-Twelve-Months)). Leverage is moderate overall with debt-to-equity mostly in the ~0.5–0.7 range, improving from a higher level in FY2022 (~0.92). A notable watch item is the large swing in reported total debt between FY2025 (~$1.20B) and TTM (Trailing-Twelve-Months) (~$0.03B), which suggests potential classification/timing effects and adds comparability risk.

Cash Flow

Cash generation is generally positive and improving in the most recent period: TTM (Trailing-Twelve-Months) operating cash flow is strong (~$539M) with healthy free cash flow (~$441M). However, cash conversion has been inconsistent across years—FY2022 had negative operating and free cash flow, FY2025 free cash flow dropped versus FY2024, and in TTM (Trailing-Twelve-Months) free cash flow is ~75% of net income, indicating not all reported earnings are translating into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.74B	3.62B	3.58B	3.71B	3.36B	2.98B
Gross Profit	1.11B	1.09B	982.89M	840.14M	749.97M	739.15M
EBITDA	526.14M	558.57M	434.16M	361.32M	307.59M	302.65M
Net Income	312.80M	363.74M	269.10M	175.81M	143.91M	143.37M
Balance Sheet
Total Assets	4.05B	3.97B	3.47B	3.62B	3.74B	3.46B
Cash, Cash Equivalents and Short-Term Investments	450.08M	343.13M	333.32M	346.67M	402.49M	451.81M
Total Debt	1.18B	1.20B	914.26M	1.09B	1.37B	1.07B
Total Liabilities	2.15B	2.05B	1.71B	2.01B	2.24B	1.92B
Stockholders Equity	1.89B	1.92B	1.75B	1.60B	1.49B	1.54B
Cash Flow
Free Cash Flow	441.28M	139.26M	370.59M	191.17M	-139.63M	288.36M
Operating Cash Flow	538.80M	260.30M	457.03M	279.94M	-65.58M	358.38M
Investing Cash Flow	-104.59M	-336.39M	-92.48M	-44.80M	-69.23M	-65.04M
Financing Cash Flow	-479.99M	90.27M	-370.56M	-270.45M	98.43M	-188.72M

EnerSys Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 172.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 172.62 is below the 20-day moving average (MA) of 177.50, above the 50-day MA of 164.76, and above the 200-day MA of 120.74, indicating a neutral trend. The MACD of 1.87 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 26.26 is Neutral, 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	81 Outperform	$6.79B	35.35	32.16%	0.32%	9.08%	19.86%
ENS	77 Outperform	$6.36B	20.72	16.74%	0.67%	6.17%	20.86%
ENR	68 Neutral	$1.55B	7.65	151.33%	6.02%	2.28%	534.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EOSE	59 Neutral	$3.72B	-1.37	―	―	324.10%	-214.91%
ENVX	54 Neutral	$1.32B	-7.53	-68.95%	―	45.98%	44.14%
PLUG	52 Neutral	$2.66B	-0.87	-95.42%	―	2.53%	-2.83%

EnerSys Corporate Events

EnerSys posts fiscal Q3 results amid mixed demand

On February 4, 2026, EnerSys reported its third-quarter fiscal 2026 results for the period ended December 28, 2025, posting net sales of $919.1 million, up 1.4% year on year and at the low end of guidance, with growth driven by higher pricing and favorable foreign exchange that offset weaker volumes, particularly in its Motive Power segment. Gross margin reached 30.1% but declined versus the prior year due to a previously higher benefit from U.S. IRC 45X tax credits, while gross margin excluding 45X expanded to 26.3%, and adjusted diluted EPS excluding 45X rose 50% to $1.84, reflecting stronger mix and cost discipline even as GAAP diluted EPS fell 17% to $2.40. The company continued to prioritize shareholder returns, distributing $94 million in the quarter through buybacks and dividends and keeping net leverage at 1.2x EBITDA, below its target range, steps that underscore management’s confidence in its EnerGize strategic framework and its positioning to benefit from durable demand for energy storage despite mixed end-market conditions.

The most recent analyst rating on (ENS) stock is a Buy with a $208.00 price target. To see the full list of analyst forecasts on EnerSys stock, see the ENS Stock Forecast page.

EnerSys Expands Receivables Purchase Agreement with Wells Fargo

On December 15, 2025, EnerSys announced an amendment to its Receivables Purchase Agreement, initially entered on December 21, 2022, with Wells Fargo Bank and other financial institutions. The amendment increases the payment capacity from $150 million to $250 million, with an additional $50 million accordion feature, enhancing EnerSys’s financial flexibility and potentially impacting its operational capabilities and market positioning.

The most recent analyst rating on (ENS) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on EnerSys stock, see the ENS Stock Forecast page.