NYSE:ENS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

EnerSys manufactures, markets, and distributes industrial batteries. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has EnerSys's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

ENS

0.5%

US Electrical

-2.4%

US Market


1 Year Return

9.1%

ENS

26.9%

US Electrical

18.2%

US Market

Return vs Industry: ENS underperformed the US Electrical industry which returned 29.3% over the past year.

Return vs Market: ENS underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

ENSIndustryMarket
7 Day1.4%0.5%-2.4%
30 Day6.0%6.9%4.2%
90 Day10.8%17.6%6.3%
1 Year10.3%9.1%29.5%26.9%20.9%18.2%
3 Year8.2%5.0%38.6%30.7%41.2%31.8%
5 Year24.4%18.2%95.5%77.8%84.8%63.9%

Price Volatility Vs. Market

How volatile is EnerSys's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EnerSys undervalued compared to its fair value and its price relative to the market?

25.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ENS ($73.36) is trading above our estimate of fair value ($58.83)

Significantly Below Fair Value: ENS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ENS is good value based on its PE Ratio (25.1x) compared to the US Electrical industry average (25.8x).

PE vs Market: ENS is poor value based on its PE Ratio (25.1x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: ENS is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: ENS is good value based on its PB Ratio (2.3x) compared to the US Electrical industry average (4x).


Next Steps

Future Growth

How is EnerSys forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

32.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENS's forecast earnings growth (32.3% per year) is above the savings rate (2.2%).

Earnings vs Market: ENS's earnings (32.3% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ENS's revenue (4.6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: ENS's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ENS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EnerSys performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENS has a large one-off loss of $60.9M impacting its July 5 2020 financial results.

Growing Profit Margin: ENS's current net profit margins (4.1%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: ENS's earnings have declined by 0.7% per year over the past 5 years.

Accelerating Growth: ENS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ENS had negative earnings growth (-24.6%) over the past year, making it difficult to compare to the Electrical industry average (-24.7%).


Return on Equity

High ROE: ENS's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is EnerSys's financial position?


Financial Position Analysis

Short Term Liabilities: ENS's short term assets ($1.5B) exceed its short term liabilities ($543.3M).

Long Term Liabilities: ENS's short term assets ($1.5B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: ENS's debt to equity ratio (82.6%) is considered high.

Reducing Debt: ENS's debt to equity ratio has increased from 58.7% to 82.6% over the past 5 years.

Debt Coverage: ENS's debt is well covered by operating cash flow (30.1%).

Interest Coverage: ENS's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

What is EnerSys's current dividend yield, its reliability and sustainability?

0.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ENS's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: ENS's dividend (0.95%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ENS has been paying a dividend for less than 10 years.

Growing Dividend: ENS's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24%), ENS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Dave Shaffer (55 yo)

4.5yrs

Tenure

US$5,210,451

Compensation

Mr. David M. Shaffer, also known as Dave, has been Director and Chief Executive Officer of EnerSys since April 2016 and has been its President since November 2014 and was its Chief Operating Officer since ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD5.21M) is about average for companies of similar size in the US market ($USD5.61M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Shaffer
CEO, President & Director4.5yrsUS$5.21m0.52%
$ 16.1m
Michael Schmidtlein
CFO & Executive VP of Finance10.67yrsUS$1.87m0.24%
$ 7.4m
Shawn O'Connell
President of Motive Power Global1.5yrsUS$1.28m0.055%
$ 1.7m
Andrew Zogby
President of Energy Systems Global1.5yrsUS$1.26m0.0013%
$ 41.8k
Joern Tinnemeyer
Senior VP & CTOno datano datano data
Thomas O'Neill
VP of Investor Relations & Treasurer10.33yrsno datano data
Joseph Lewis
Senior VPno datano datano data
Patrice Baumann
Senior VP of Operations & Supply Chainno datano datano data
Mark Mathews
Senior Vice President Specialty Global0.25yrno datano data
Kerry Kane
VP & Corporate Controller10.33yrsno data0.056%
$ 1.8m
Steve Heir
Vice President of Business Developmentno datano datano data

4.5yrs

Average Tenure

55yo

Average Age

Experienced Management: ENS's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Shaffer
CEO, President & Director4.5yrsUS$5.21m0.52%
$ 16.1m
Paul Tufano
Independent Director5.5yrsUS$258.02k0%
$ 0
Howard Hoffen
Independent Lead Directorno dataUS$221.00kno data
Hwan-yoon Chung
Independent Director14.67yrsUS$224.00k0%
$ 0
Arthur Katsaros
Independent Non-Executive Chairman4.42yrsUS$396.57k0.014%
$ 434.1k
Ronald Vargo
Independent Director3.17yrsUS$252.95k0%
$ 0
Steven Fludder
Independent Director0.25yrno datano data
Nelda Connors
Independent Director3.17yrsUS$230.00k0%
$ 0
Robert Magnus
Independent Director12.25yrsUS$245.00k0%
$ 0
Caroline Chan
Independent Director0.25yrno datano data

4.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: ENS's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

EnerSys's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EnerSys
  • Ticker: ENS
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$3.116b
  • Shares outstanding: 42.48m
  • Website: https://www.enersys.com

Number of Employees


Location

  • EnerSys
  • 2366 Bernville Road
  • Reading
  • Pennsylvania
  • 19605
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENSNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2004
FDNDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2004

Biography

EnerSys manufactures, markets, and distributes industrial batteries. The company offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-mark ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:42
End of Day Share Price2020/10/19 00:00
Earnings2020/07/05
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.