NYSE:ENS

Stock Analysis Report

Executive Summary

EnerSys manufactures, markets, and distributes industrial batteries.

Snowflake

Fair value with acceptable track record.


Similar Companies

Powell Industries

NasdaqGS:POWL

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

-3.1%

ENS

0.9%

US Electrical

0.2%

US Market


1 Year Return

-21.4%

ENS

12.8%

US Electrical

12.2%

US Market

Return vs Industry: ENS underperformed the US Electrical industry which returned 12.8% over the past year.

Return vs Market: ENS underperformed the US Market which returned 12.2% over the past year.


Shareholder returns

ENSIndustryMarket
7 Day-3.1%0.9%0.2%
30 Day4.8%9.2%3.5%
90 Day18.3%18.8%6.3%
1 Year-20.6%-21.4%15.2%12.8%14.7%12.2%
3 Year-9.6%-12.2%37.4%29.7%47.8%38.3%
5 Year17.0%11.1%44.9%30.1%62.1%44.1%

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?

16.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ENS ($67.6) is trading above our estimate of fair value ($58.88)

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 (16.1x) compared to the Electrical industry average (17.6x).

PE vs Market: ENS is good value based on its PE Ratio (16.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: ENS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ENS is overvalued based on its PB Ratio (2.2x) compared to the US Electrical industry average (1.5x).


Next Steps

Future Growth

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

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENS's forecast earnings growth (19% per year) is above the savings rate (2.7%).

Earnings vs Market: ENS's earnings (19% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: ENS's earnings are forecast to grow, but not significantly.

Revenue vs Market: ENS's revenue (6.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ENS's revenue (6.6% 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?

-2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENS has a high level of non-cash earnings.

Growing Profit Margin: ENS's current net profit margins (5.9%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: ENS's earnings have declined by -2% per year over the past 5 years.

Accelerating Growth: ENS's earnings growth over the past year (46.9%) exceeds its 5-year average (-2% per year).

Earnings vs Industry: ENS earnings growth over the past year (46.9%) exceeded the Electrical industry 8.6%.


Return on Equity

High ROE: ENS's Return on Equity (13.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EnerSys's financial position?


Financial Position Analysis

Short Term Liabilities: ENS's short term assets ($1.6B) exceeds its short term liabilities ($565.6M)

Long Term Liabilities: ENS's short term assets (1.6B) exceeds its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: ENS's debt to equity ratio (86.5%) is considered high

Reducing Debt: ENS's debt to equity ratio has increased from 39% to 86.5% over the past 5 years.

Debt Coverage: ENS's debt is not well covered by operating cash flow (19.2%).

Interest Coverage: ENS's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet

Inventory Level: ENS has a high level of physical assets or inventory.

Debt Coverage by Assets: ENS's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

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

1.04%

Current Dividend Yield


Upcoming Dividend Payment

Purchase EnerSys before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.6%industryaverage2.2%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: ENS's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ENS's dividend (1.04%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.7%), 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

What is the CEO of EnerSys's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Dave Shaffer (54yo)

3.6yrs

Tenure

US$5,208,103

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 ($USD5.21M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: ENS's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

64.5yo

Average Age

Experienced Board: ENS's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,696,67313 Feb 19
Todd Sechrist
EntityIndividual
Shares24,039
Max PriceUS$70.58

Ownership Breakdown

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


Management Team

  • Drew Zogby (58yo)

    President of Energy Systems Americas

    • Tenure: 0.6yrs
  • Michael Schmidtlein (58yo)

    CFO & Executive VP of Finance

    • Tenure: 9.8yrs
    • Compensation: US$1.97m
  • Dave Shaffer (54yo)

    CEO, President & Director

    • Tenure: 3.6yrs
    • Compensation: US$5.21m
  • Jörn Tinnemeyer

    Senior VP & CTO

    • Tenure: 0yrs
  • Shawn O'Connell (46yo)

    President of Motive Power Americas

    • Tenure: 0.6yrs
  • Kerry Kane

    VP & Corporate Controller

    • Tenure: 9.4yrs
  • Thomas O'Neill

    VP of Investor Relations & Treasurer

    • Tenure: 9.4yrs
  • Holger Aschke (50yo)

    President of Europe

    • Tenure: 3.8yrs
    • Compensation: US$1.34m
  • Joseph Lewis

    Senior VP

    • Tenure: 0yrs
  • Patrice Baumann

    Senior VP of Operations & Supply Chain

    • Tenure: 0yrs

Board Members

  • John Lehman (76yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$254.23k
  • Paul Tufano (65yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$253.00k
  • Dennis Marlo (76yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$254.23k
  • Howard Hoffen (56yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$219.32k
  • Hwan-yoon Chung (45yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$220.82k
  • Arthur Katsaros (71yo)

    Independent Non-Executive Chairman

    • Tenure: 3.5yrs
    • Compensation: US$424.32k
  • Ron Vargo (64yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$247.00k
  • Nelda Connors (53yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$228.32k
  • Bob Magnus (72yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$238.63k
  • Dave Shaffer (54yo)

    CEO, President & Director

    • Tenure: 3.6yrs
    • Compensation: US$5.21m

Company Information

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


Key Information

  • Name: EnerSys
  • Ticker: ENS
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$2.859b
  • Shares outstanding: 42.29m
  • 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 Analysis2019/11/14 23:57
End of Day Share Price2019/11/14 00:00
Earnings2019/09/29
Annual Earnings2019/03/31


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.