ENS  Enersys

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Telecommunications Equipment

Market Cap.

3.33B

Vuru Grade

50.64/100

Current Price

$76.75
-1.00 (-1.29%)

Growth Price

$72.53
Overvalued by 5.50%

Stability Price

$60.89
Overvalued by 20.66%

Company Metrics

  • P/E 24.86
  • P/S 1.44
  • P/B 3.20
  • EPS 3.09
  • Cash ROIC 12.60%
  • Cash Ratio 0.88
  • Dividend 0.70 / 0.88 %
  • Avg. Vol. 230,530.00
  • Shares 43.39M
  • Market Cap. 3.33B

Company Description

EnerSys engages in the manufacture and sale of industrial batteries. It also offers related direct current power products, including chargers, electronic power equipment, and various battery accessories. The company's products include reserve power products that are used primarily for backup power applications. Its reserve power batteries are also used for telecommunications systems, uninterruptib... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

EnerSys (ENS) Beats on Q3 Earnings; Revenues Miss Estimate
Nasdaq - Feb 9, 2017
EnerSys' operating earnings for the quarter remained flat year over year at $55.1 million. Nevertheless, gross margin expanded 230 basis points to 27.7.
Enersys (ENS) Issues Quarterly Earnings Results, Beats Expectations By $0.05 EPS - Community Financial News
EnerSys Reports Third Quarter Fiscal 2017 Results
Yahoo Finance - Feb 8, 2017
Net earnings attributable to EnerSys stockholders ("Net earnings") for the third quarter of fiscal 2017 were $36.2 million, or $0.82 per diluted share, including an unfavorable highlighted net of tax impact of $15.8 million or $0.36 per share from cash ...
EnerSys - Acquisition Machine Looks Appealing, Despite Headwinds
Seeking Alpha - Apr 18, 2016
EnerSys (NYSE:ENS) announced that it has acquired certain assets from Enser Corporation, a Florida-based manufacturer of molten salt thermal batteries.
EnerSys Announces Third Quarter Fiscal 2017 Results Conference Call
PR Newswire (press release) - Jan 18, 2017
READING, Pa., Jan. 18, 2017 /PRNewswire/ -- EnerSys (NYSE: ENS) the global leader in stored energy solutions for industrial applications will host a conference call to discuss the Company's third quarter of fiscal 2017 financial results and to provide ...
EnerSys closing its 110-year-old Cleveland plant on May 31, cutting all 95 jobs
cleveland.com - Jan 6, 2016
EnerSys, the Reading, Pennsylvania-based manufacturer of stored energy solutions for industrial applications, such as batteries and power equipment, has announced plans to permanently close its 110-year-old facility at 12690 Elmwood Ave.
EnerSys' (ENS) CEO David Shaffer on Q3 2017 Results - Earnings Call Transcript
Seeking Alpha - Feb 9, 2017
Good morning, ladies and gentlemen, and welcome to the EnerSys Third Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode.
EnerSys (ENS) Q2 2017 Results - Earnings Call Transcript
Seeking Alpha - Nov 10, 2016
Good day, ladies and gentlemen, and welcome to the Q2 2017 EnerSys Earnings Conference Call. At this time, all participants are in a listen-only mode.
EnerSys turns in strong third quarter
Reading Eagle - Feb 10, 2017
"I am pleased with the results of the third quarter," said David M. Shaffer, EnerSys president and CEO, in a statement.
EnerSys Reports Fourth Quarter and Full Year Fiscal 2016 Results
PR Newswire (press release) - May 31, 2016
READING, Pa., May 31, 2016 /PRNewswire/ -- EnerSys (NYSE: ENS) the global leader in stored energy solutions for industrial applications, announced today results for its fourth quarter and full year of fiscal 2016, which ended on March 31, 2016.
The Enersys (ENS) Shares Sold by Pinnacle Associates Ltd.
DailyQuint - 12 hours ago
Pinnacle Associates Ltd. reduced its stake in Enersys (NYSE:ENS) by 12.1% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ENS to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ENS's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$76.75 Current Price

$72.53 Growth Price (DCF)

Overvalued by 5.50%


Growth Rate Assumed by Market: 8.98%


Future Free Cash Flow Growth Rate: 6.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$60.89 Stability Price (EPV)

Overvalued by 20.66%


Discount Rate: 15.0%

$2.19 NCA Price

Overvalued by 97.15%

$45.38 Book Price

Overvalued by 40.87%


Satisfactory Cash Return on Invested Capital over the past 5 years

ENS has somewhat efficiently invested its financial resources in buildings, projects, and equipment. If CROIC is inconsistent, it's likely ENS could be benefiting from a one-time event or has a mixed history of investing capital productively. Read the company's Annual Report to determine whether this can improve.

ENS has created $12.60 of cash for every $100 invested.
Figures in USD. Fiscal year ends in March
20122013201420152016
Free Cash Flow 155.25M 189.11M 131.63M 130.85M 251.69M
divided by
Invested Capital 1.30B 1.27B 1.50B 1.46B 1.37B
Cash ROIC 11.96% 14.88% 8.77% 8.96% 18.43%

Satisfactory Return on Equity over the past 5 years

ENS has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

ENS has generated $14.06 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in March
20122013201420152016
Net Income 144.00M 164.96M 146.77M 181.53M 131.82M
divided by
Stockholders' Equity 1.03B 1.17B 1.25B 1.04B 1.01B
Return on Equity 13.95% 14.11% 11.78% 17.47% 13.01%

Excellent Business Performance over the past 10 years

ENS has been able to maintain profitability in good times and bad. This could mean ENS has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

ENS has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Free Cash Flow 30.07M -41.02M 162.29M 91.49M 16.52M 155.25M 189.11M 131.63M 130.85M 251.69M

Weak Balance Sheet

ENS's financial position is not ideal. The key is to check whether ENS is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Cash 37.79M 20.62M 163.16M 201.04M 108.87M 160.49M 249.35M 240.10M 268.92M 397.31M
Current Assets 674.29M 911.20M 778.42M 895.28M 997.95M 1.07B 1.15B 1.30B 1.23B 1.30B
Total Assets 1.41B 1.71B 1.49B 1.65B 1.83B 1.92B 1.99B 2.32B 2.16B 2.21B
Current Liabilities 398.04M 521.72M 348.44M 419.51M 463.57M 460.30M 467.56M 581.40M 433.37M 451.17M
Total Liabilities 866.91M 1.02B 849.25M 872.11M 854.06M 887.08M 818.47M 1.08B 1.12B 1.20B
Stockholder' Equity 542.10M 691.54M 644.39M 779.90M 974.33M 1.03B 1.17B 1.25B 1.04B 1.01B
Current Ratio 1.69 1.75 2.23 2.13 2.15 2.33 2.47 2.24 2.85 2.87
TL-to-TA 0.62 0.60 0.57 0.53 0.47 0.46 0.41 0.46 0.52 0.54

Consistent Reinvestment of Profits over the past 10 years

ENS has consistently retained profits. This may put ENS in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, ENS can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Retained Earnings 99.48M 159.18M 243.76M 303.41M 416.84M 560.84M 727.35M 848.41M 997.38M 1.10B
Retained Earnings Growth - 60.01% 53.14% 24.47% 37.38% 34.55% 29.69% 16.65% 17.56% 10.05%

Competitive Industry over the past 10 years

ENS is likely operating in an industry with medium to low barriers to entry. This may mean that ENS doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that ENS invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.24 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Net Income 45.21M 59.70M 84.59M 62.30M 113.43M 144.00M 164.96M 146.77M 181.53M 131.82M
divided by
Revenue 1.50B 2.03B 1.97B 1.58B 1.96B 2.28B 2.28B 2.47B 2.51B 2.32B
Net Profit Margin 3.01% 2.95% 4.29% 3.94% 5.77% 6.31% 7.24% 5.93% 7.25% 5.69%

Inconsistent Gross Profit Margins over the past 10 years

ENS has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$30.87 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Gross Profit 311.21M 381.89M 413.43M 360.90M 449.84M 2.28B 569.36M 629.62M 640.91M 611.78M
divided by
Revenue 1.50B 2.03B 1.97B 1.58B 1.96B 2.28B 2.28B 2.47B 2.51B 2.32B
Gross Margin 20.69% 18.84% 20.96% 22.85% 22.90% 100.00% 25.00% 25.45% 25.58% 26.41%

High Capital Intensity over the past 10 years

ENS spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

54.91% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Capital Expenditure 42.36M 45.04M 57.14M 45.11M 59.94M 48.94M 55.29M 62.00M 63.63M 55.88M
divided by
Net Income 45.21M 59.70M 84.59M 62.30M 113.43M 144.00M 164.96M 146.77M 181.53M 131.82M
Capital Expenditure Ratio 93.69% 75.44% 67.56% 72.40% 52.85% 33.99% 33.52% 42.24% 35.05% 42.39%

Inconsistent Dividend History over the past 10 years

ENS has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - 23.68M 31.74M 30.88M
divided by
Shares Outstanding 47.55M 48.64M 49.42M 48.83M 50.04M 49.22M 48.64M 49.79M 48.05M 45.47M
Dividend Paid Per Share - - - - - - - 0.48 0.66 0.68
Price at Year End 24.45 10.61 22.06 32.36 25.97 36.80 69.89 61.82 56.73 78.10
Dividend Yield - - - - - - - 0.77% 1.16% 0.87%

History of Stock Buybacks over the past 10 years

ENS has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Shares Outstanding 47.55M 48.64M 49.42M 48.83M 50.04M 49.22M 48.64M 49.79M 48.05M 45.47M
Stock Bought Back - -2.26% -1.57% 1.20% -2.42% 1.68% 1.19% -2.32% 3.61% 5.67%
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