EnerSys (ENS) stock analysis

P/E below its 5-year median

EnerSys's P/E of 14.8 is below its own 5-year median of 18.5.

P/E below the industry

EnerSys's P/E of 14.8 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 32.5.

EV/EBITDA below its 5-year median

EnerSys's EV/EBITDA of 9.3 is below its 5-year median of 11.4.

P/B above the industry

EnerSys's price-to-book of 2.79 is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 1.79.

Trading below fair value

The share price of $147.65 is below our fair value estimate of $218.47.

Margin of safety over 20%

The price is 32.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 21.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 10.8% over the last twelve months, against a 5-year average of 15.4% a year.

Growing faster than the industry

Revenue grew 1.8% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is 1.6%.

Guidance lowered

EnerSys lowered its second quarter of fiscal 2027 Adjusted diluted EPS, ex IRC 45X benefits outlook on Aug 12, 2026.

Gross margin improving

Gross margin was 30.7% over the last twelve months, against 30.4% a year earlier.

Return on equity under 15%

Return on equity was 19.8% over the last twelve months and averaged 14.4% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 16.9%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

EnerSys's return on equity of 19.8% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -31.2%.

Earnings grew over 5 years

Net income grew 15.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.9% over the last twelve months, against a 5-year average of 6.9%.

Net margin above the industry

EnerSys's net margin of 9.9% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -64.6%.

High debt

Debt is 42.8% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 65.2% five years ago to 42.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 86.1% of total debt.

Interest well covered

Operating income covers interest expense 10.8 times.

Short-term assets cover short-term debts

Current assets are 2.39 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.74; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

EnerSys paid dividends worth 0.7% of the share price over the last twelve months.

Yield below Treasuries

The 0.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; EnerSys yields 0.7%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 10.5% of net income.

Covered by free cash flow

Dividends take 6.0% of free cash flow.