NYSE:ENS

Stock Analysis Report

Executive Summary

EnerSys manufactures, markets, and distributes industrial batteries.


Snowflake Analysis

Fair value with mediocre balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

ENS

-4.1%

US Electrical

-2.6%

US Market


1 Year Return

-25.3%

ENS

-25.3%

US Electrical

-13.3%

US Market

Return vs Industry: ENS matched the US Electrical industry which returned -26.2% over the past year.

Return vs Market: ENS underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

ENSIndustryMarket
7 Day3.1%-4.1%-2.6%
30 Day-16.4%-23.2%-15.2%
90 Day-32.7%-32.1%-22.2%
1 Year-24.4%-25.3%-23.7%-25.3%-11.5%-13.3%
3 Year-32.6%-34.6%-8.2%-13.5%13.2%5.7%
5 Year-20.5%-24.5%4.0%-6.3%31.8%17.2%

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?

22.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENS ($50.67) is trading below our estimate of fair value ($64.97)

Significantly Below Fair Value: ENS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ENS is poor value based on its PE Ratio (13.7x) compared to the Electrical industry average (13.7x).

PE vs Market: ENS is poor value based on its PE Ratio (13.7x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: ENS is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ENS is overvalued based on its PB Ratio (1.6x) compared to the US Electrical industry average (1.2x).


Next Steps

Future Growth

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

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENS's forecast earnings growth (19.7% per year) is above the savings rate (1.7%).

Earnings vs Market: ENS's earnings (19.7% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: ENS's revenue (3.6% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: ENS's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENS's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has EnerSys performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENS has a large one-off loss of $74.6M impacting its December 29 2019 financial results.

Growing Profit Margin: ENS's current net profit margins (5.1%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: ENS's earnings have declined by -1% 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 (-19.4%) over the past year, making it difficult to compare to the Electrical industry average (-1.4%).


Return on Equity

High ROE: ENS's Return on Equity (11.5%) 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 ($594.0M).

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 (81.4%) is considered high.

Reducing Debt: ENS's debt to equity ratio has increased from 45.3% to 81.4% over the past 5 years.

Debt Coverage: ENS's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: ENS's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ENS's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: ENS's dividend (1.38%) is low compared to the top 25% of dividend payers in the US market (5.82%).


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 (18.9%), 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?

4.3yrs

Average management tenure


CEO

Dave Shaffer (54yo)

4s

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 ($USD5.21M) is about average for companies of similar size in the US market ($USD4.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Shaffer
CEO, President & Director4yrsUS$5.21m0.50% $10.8m
Michael Schmidtlein
CFO & Executive VP of Finance10.17yrsUS$1.97m0.23% $5.1m
Holger Aschke
President of Europe4.25yrsUS$1.34m0.092% $2.0m
Joern Tinnemeyer
Senior VP & CTOno datano datano data
Thomas O'Neill
VP of Investor Relations & Treasurer9.83yrsno datano data
Joseph Lewis
Senior VPno datano datano data
Shawn O'Connell
President of Motive Power Americas1yrno data0.045% $973.2k
Andrew Zogby
President of Energy Systems Americas1yrno data0.018% $392.0k
Patrice Baumann
Senior VP of Operations & Supply Chainno datano datano data
Kerry Kane
VP & Corporate Controller9.83yrsno data0.053% $1.1m

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: ENS's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Shaffer
CEO, President & Director4yrsUS$5.21m0.50% $10.8m
John Lehman
Independent Director15.67yrsUS$254.23k0.15% $3.3m
Paul Tufano
Independent Director5yrsUS$253.00kno data
Dennis Marlo
Independent Director15.67yrsUS$254.23k0.052% $1.1m
Howard Hoffen
Lead Directorno dataUS$219.32kno data
Hwan-yoon Chung
Independent Director14.17yrsUS$220.82kno data
Arthur Katsaros
Independent Non-Executive Chairman3.92yrsUS$424.32k0.014% $302.1k
Ronald Vargo
Independent Director2.67yrsUS$247.00kno data
Nelda Connors
Independent Director2.67yrsUS$228.32kno data
Robert Magnus
Independent Director11.75yrsUS$238.63kno data

5.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: ENS's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ENS insiders have only sold shares 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: 1999
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$2.161b
  • Shares outstanding: 42.31m
  • 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
FDNBRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 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-market and customer-support services for industrial batteries. It also provides reserve power products that are used for backup power for the continuous operation of critical applications in telecommunications systems, uninterruptible power systems applications for computer and computer-controlled systems, and other specialty power applications, including medical and security systems, premium starting, lighting, and ignition applications, as well as in switchgear, electrical control systems used in electric utilities, large-scale energy storage, energy pipelines, commercial aircraft, satellites, military aircraft, submarines, ships, and tactical vehicles. The company’s reserve power products also include thermally managed cabinets and enclosures for electronic equipment and batteries. In addition, it offers motive power products that are used to provide power for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as mining equipment, diesel locomotive starting, and other rail equipment. The company sells its products through a network of distributors, independent representatives, and internal sales forces in North and South America, Europe, the Middle East, Africa, Asia, Australia, and Oceania. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001 to reflect its focus on the energy systems business. EnerSys was founded in 1999 and is headquartered in Reading, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 03:00
End of Day Share Price2020/04/06 00:00
Earnings2019/12/29
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.