EnerSys
EnerSys Fundamental Analysis
EnerSys (ENS) shows weak financial fundamentals with a PE ratio of 20.41, profit margin of 8.37%, and ROE of 16.61%. The company generates $3.7B in annual revenue with weak year-over-year growth of 1.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ENS's fundamental strength across five key dimensions:
Efficiency Score
WeakENS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentENS trades at attractive valuation levels.
Growth Score
ModerateENS shows steady but slowing expansion.
Financial Health Score
ExcellentENS maintains a strong and stable balance sheet.
Profitability Score
ModerateENS maintains healthy but balanced margins.
Key Financial Metrics
Is ENS Expensive or Cheap?
P/E Ratio
ENS trades at 20.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ENS's PEG of -3.76 indicates potential undervaluation.
Price to Book
The market values EnerSys at 3.38 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.76 times EBITDA. This signals the market has high growth expectations.
How Well Does ENS Make Money?
Net Profit Margin
For every $100 in sales, EnerSys keeps $8.37 as profit after all expenses.
Operating Margin
Core operations generate 11.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.61 in profit for every $100 of shareholder equity.
ROA
EnerSys generates $7.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EnerSys produces operating cash flow of $539.46M, showing steady but balanced cash generation.
Free Cash Flow
EnerSys generates strong free cash flow of $441.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.97 in free cash annually.
FCF Yield
ENS converts 6.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How ENS Stacks Against Its Sector Peers
| Metric | ENS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.41 | 26.76 | Better (Cheaper) |
| ROE | 16.61% | 1300.00% | Weak |
| Net Margin | 8.37% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.62 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.75 | 10.68 | Strong Liquidity |
| ROA | 7.73% | -1545134.00% (disorted) | Weak |
ENS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EnerSys's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.97%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
182.96%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
9.57%
Industry Style: Cyclical, Value, Infrastructure
Growing