ENS  Enersys

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Telecommunications Equipment

Market Cap.

2.96B

Vuru Grade

51.63/100

Current Price

$68.31
-0.265 (-0.386%)

Growth Price

$61.80
Overvalued by 9.52%

Stability Price

$27.23
Overvalued by 60.14%

Company Metrics

  • P/E 18.406
  • P/S 1.246
  • P/B 2.559
  • EPS 3.711
  • Cash ROIC 13.16%
  • Cash Ratio 1.07
  • Dividend 0.7 / 1.02%
  • Avg. Vol. 280,271.00
  • Shares 43.34M
  • Market Cap. 2.96B

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 Announces Second Quarter Fiscal 2018 Results Conference Call
GlobeNewswire (press release) - Oct 18, 2017
READING, Pa., Oct. 18, 2017 (GLOBE NEWSWIRE) -- EnerSys (NYSE:ENS) the global leader in stored energy solutions for industrial applications will host a conference call to discuss the Company's second quarter of fiscal 2018 financial results and to ...
Decision Time: Enersys (NYSE:ENS) Stock Technicals Hit Inflection Point
CML News - 13 hours ago
Decision Time: Enersys (NYSE:ENS) now sits in the perhaps the most difficult technical position -- the stock has no urgency in its direction and that has left it at an inflection point.
Why Should You Dump EnerSys (ENS) from your Portfolio Now
Nasdaq - Oct 9, 2017
Industrial battery manufacturer, EnerSys ENS has been disappointing investors of late. The company continues to grapple with increasing costs and lead price fluctuations that, among other factors, will continue to hurt profits in the short run ...
Can EnerSys (NYSE:ENS) Go The Extra Mile?
Financial Newsweek - 3 hours ago
After a recent scan, we can see that EnerSys (NYSE:ENS) has a Shareholder Yield of 1.00% and a Shareholder Yield (Mebane Faber) of -0.21%.
Enersys (ENS) Lifted to Hold at Zacks Investment Research
TrueBlueTribune - 10 hours ago
Enersys logo Enersys (NYSE:ENS) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report issued on Wednesday, October 11th.
Are Analysts Bearish EnerSys (NYSE:ENS) After Last Week? - BZ Weekly
EnerSys (NYSE:ENS) Runs 0.88% For the Week - Concord Register
ROE & Due Diligence Report on EnerSys (NYSE:ENS)
Berry Recorder - 1 hour ago
In reviewing some key ratios and quant data for EnerSys (NYSE:ENS), we note that the mother of all ratios (Return on Equity) stands at 0.140904 for the firm.
Is EnerSys (NYSE:ENS) Generating Enough Return For Investors? - Lenox Ledger
Cubist Systematic Strategies LLC Has $2.04 Million Holdings in Enersys (NYSE:ENS)
Dispatch Tribunal - Oct 19, 2017
Enersys logo Cubist Systematic Strategies LLC boosted its holdings in Enersys (NYSE:ENS) by 423.2% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission.
What Next for Enersys (NYSE:ENS) Stock After Increase in Shorted Shares? - BZ Weekly
EnerSys (ENS) EPS Estimated At $1.04
WeeklyHub - Oct 15, 2017
Investors sentiment increased to 1.21 in 2017 Q2. Its up 0.11, from 1.1 in 2017Q1. It increased, as 21 investors sold EnerSys shares while 87 reduced holdings. 39 funds opened positions while 92 raised stakes. 41.03 million shares or 0.20% more from 40 ...
Tudor Investment Corp ET AL Reduces Stake in Enersys (NYSE:ENS) - TrueBlueTribune
California Public Employees Retirement System Buys 2700 Shares of Enersys ... - Dispatch Tribunal
Were Analysts Bearish EnerSys (NYSE:ENS) This Week?
KL Daily - 14 hours ago
Investors sentiment increased to 1.21 in Q2 2017. Its up 0.11, from 1.1 in 2017Q1. It increased, as 21 investors sold EnerSys shares while 87 reduced holdings. 39 funds opened positions while 92 raised stakes. 41.03 million shares or 0.20% more from 40 ...
Enersys (ENS) Stake Lowered by AHL Partners LLP
TrueBlueTribune - Sep 29, 2017
Enersys logo AHL Partners LLP lowered its stake in shares of Enersys (NYSE:ENS) by 7.4% during the 2nd quarter, according to its most recent filing with the SEC.
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.

$68.31 Current Price

$61.80 Growth Price (DCF)

Overvalued by 9.52%


Growth Rate Assumed by Market: 9.69%


Future Free Cash Flow Growth Rate: 5.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$27.23 Stability Price (EPV)

Overvalued by 60.14%


Discount Rate: 15.0%

$5.29 NCA Price

Overvalued by 92.25%

$52.52 Book Price

Overvalued by 23.12%


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 $13.16 of cash for every $100 invested.
Figures in USD. Fiscal year ends in March
20132014201520162017
Free Cash Flow 189.11M 131.63M 130.85M 251.69M 195.96M
divided by
Invested Capital 1.27B 1.50B 1.46B 1.37B 1.33B
Cash ROIC 14.88% 8.77% 8.96% 18.43% 14.79%

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 $14.14 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in March
20132014201520162017
Net Income 164.96M 146.77M 181.53M 131.82M 158.22M
divided by
Stockholders' Equity 1.17B 1.25B 1.04B 1.01B 1.10B
Return on Equity 14.11% 11.78% 17.47% 13.01% 14.34%

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
2008200920102011201220132014201520162017
Free Cash Flow -41.02M 162.29M 91.49M 16.52M 155.25M 189.11M 131.63M 130.85M 251.69M 195.96M

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
2008200920102011201220132014201520162017
Cash 20.62M 163.16M 201.04M 108.87M 160.49M 249.35M 240.10M 268.92M 397.31M 500.33M
Current Assets 911.20M 778.42M 895.28M 997.95M 1.07B 1.15B 1.30B 1.23B 1.30B 1.42B
Total Assets 1.71B 1.49B 1.65B 1.83B 1.92B 1.99B 2.32B 2.16B 2.21B 2.29B
Current Liabilities 521.72M 348.44M 419.51M 463.57M 460.30M 467.56M 581.40M 433.37M 451.17M 467.43M
Total Liabilities 1.02B 849.25M 872.11M 854.06M 887.08M 818.47M 1.08B 1.12B 1.20B 1.19B
Stockholder' Equity 691.54M 644.39M 779.90M 974.33M 1.03B 1.17B 1.25B 1.04B 1.01B 1.10B
Current Ratio 1.75 2.23 2.13 2.15 2.33 2.47 2.24 2.85 2.87 3.04
TL-to-TA 0.60 0.57 0.53 0.47 0.46 0.41 0.46 0.52 0.54 0.52

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
2008200920102011201220132014201520162017
Retained Earnings 159.18M 243.76M 303.41M 416.84M 560.84M 727.35M 848.41M 997.38M 1.10B 1.23B
Retained Earnings Growth - 53.14% 24.47% 37.38% 34.55% 29.69% 16.65% 17.56% 10.05% 12.19%

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 $5.61 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Net Income 59.70M 84.59M 62.30M 113.43M 144.00M 164.96M 146.77M 181.53M 131.82M 158.22M
divided by
Revenue 2.03B 1.97B 1.58B 1.96B 2.28B 2.28B 2.47B 2.51B 2.32B 2.37B
Net Profit Margin 2.95% 4.29% 3.94% 5.77% 6.31% 7.24% 5.93% 7.25% 5.69% 6.68%

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.

$31.55 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
2008200920102011201220132014201520162017
Gross Profit 381.89M 413.43M 360.90M 449.84M 2.28B 569.36M 629.62M 640.91M 611.78M 650.63M
divided by
Revenue 2.03B 1.97B 1.58B 1.96B 2.28B 2.28B 2.47B 2.51B 2.32B 2.37B
Gross Margin 18.84% 20.96% 22.85% 22.90% 100.00% 25.00% 25.45% 25.58% 26.41% 27.49%

Medium Capital Intensity over the past 10 years

ENS has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

48.71% 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
2008200920102011201220132014201520162017
Capital Expenditure 45.04M 57.14M 45.11M 59.94M 48.94M 55.29M 62.00M 63.63M 55.88M 50.07M
divided by
Net Income 59.70M 84.59M 62.30M 113.43M 144.00M 164.96M 146.77M 181.53M 131.82M 158.22M
Capital Expenditure Ratio 75.44% 67.56% 72.40% 52.85% 33.99% 33.52% 42.24% 35.05% 42.39% 31.65%

Good Dividend History over the past 10 years

ENS has distributed dividends for the past 4 years. Remember, the longer a company's dividend history, the more established the company might be and the more reliable the future of the dividend probably is.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Dividend Paid - - - - - - 23.68M 31.74M 30.88M 30.40M
divided by
Shares Outstanding 48.64M 49.42M 48.83M 50.04M 49.22M 48.64M 49.79M 48.05M 45.47M 44.01M
Dividend Paid Per Share - - - - - - 0.48 0.66 0.68 0.69
Price at Year End 10.61 22.06 32.36 25.97 36.80 69.89 61.82 56.73 78.10 82.54
Dividend Yield - - - - - - 0.77% 1.16% 0.87% 0.84%

Strong History of Stock Buybacks over the past 10 years

ENS has a strong 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
2008200920102011201220132014201520162017
Shares Outstanding 48.64M 49.42M 48.83M 50.04M 49.22M 48.64M 49.79M 48.05M 45.47M 44.01M
Stock Bought Back - -1.57% 1.20% -2.42% 1.68% 1.19% -2.32% 3.61% 5.67% 3.32%
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