EnerSys (ENS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lumentum Holdings, Inc.

SolarEdge Technologies, Inc.

Hubbell, Inc.

Acuity Brands, Inc.

AMETEK, Inc.

Belden, Inc.

EnerSys

Generac Holdings, Inc.

Eaton Corp. Plc

Encore Wire Corp. (Delaware)

Atkore, Inc.

Why is EnerSys ?

Company has a low Debt to Equity ratio (avg) at times

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 250.87 MM
DEBT-EQUITY RATIO (HY) Highest at 51.11 %
OPERATING PROFIT(Q) Lowest at USD 120.28 MM

With ROCE of 18.13%, it has a very attractive valuation with a 1.97 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 51.27%, its profits have risen by 14% ; the PEG ratio of the company is 0.7

Market Beating performance in long term as well as near term

Along with generating 51.27% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to EnerSys should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is EnerSys for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

EnerSys

51.63%

1.10

35.07%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.96%

EBIT Growth (5y)

16.67%

EBIT to Interest (avg)

6.28

Debt to EBITDA (avg)

1.77

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

1.29

Tax Ratio

10.54%

Dividend Payout Ratio

10.51%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

13.96%

ROE (avg)

14.40%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.37

EV to EBIT

10.87

EV to EBITDA

9.02

EV to Capital Employed

1.97

EV to Sales

1.48

PEG Ratio

0.72

Dividend Yield

85.32%

ROCE (Latest)

18.13%

ROE (Latest)

19.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

ROCE(HY)

Highest at 19.13%

RAW MATERIAL COST(Y)

Fallen by -1.29% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 6.81

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 250.87 MM

DEBT-EQUITY RATIO (HY)

Highest at 51.11 %

OPERATING PROFIT(Q)

Lowest at USD 120.28 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.47 %

PRE-TAX PROFIT(Q)

Lowest at USD 70.4 MM

NET PROFIT(Q)

Lowest at USD 61.61 MM

EPS(Q)

Lowest at USD 1.46

Here's what is working for EnerSys

Dividend per share

Highest at USD 6.81

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -1.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 26.89 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for EnerSys

Operating Cash Flow

Lowest at USD 250.87 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 120.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 13.47 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 70.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 61.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.46

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 51.11 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio