ENERSYS (ENS) Stock Fundamental Analysis
NYSE:ENS - New York Stock Exchange, Inc. - US29275Y1029 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ENS. ENS was compared to 95 industry peers in the Electrical Equipment industry. While ENS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ENS may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, ENS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
ENS had positive earnings in the past year.
In the past year ENS had a positive cash flow from operations.
In the past 5 years ENS has always been profitable.
ENS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ENS's Return On Assets of 9.16% is amongst the best of the industry. ENS outperforms 90.53% of its industry peers.
ENS's Return On Equity of 18.98% is amongst the best of the industry. ENS outperforms 89.47% of its industry peers.
ENS's Return On Invested Capital of 13.74% is amongst the best of the industry. ENS outperforms 93.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENS is in line with the industry average of 10.11%.
The 3 year average ROIC (12.00%) for ENS is below the current ROIC(13.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.16% | ||
| ROE | 18.98% | ||
| ROIC | 13.74% |
ROA(3y)7.26%
ROA(5y)5.96%
ROE(3y)15.1%
ROE(5y)12.86%
ROIC(3y)12%
ROIC(5y)10.26%
1.3 Margins
ENS's Profit Margin of 10.05% is amongst the best of the industry. ENS outperforms 86.32% of its industry peers.
ENS's Profit Margin has improved in the last couple of years.
ENS's Operating Margin of 13.37% is amongst the best of the industry. ENS outperforms 85.26% of its industry peers.
ENS's Operating Margin has improved in the last couple of years.
The Gross Margin of ENS (30.20%) is better than 70.53% of its industry peers.
ENS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.37% | ||
| PM (TTM) | 10.05% | ||
| GM | 30.2% |
OM growth 3Y25.13%
OM growth 5Y10.1%
PM growth 3Y32.87%
PM growth 5Y17.76%
GM growth 3Y10.57%
GM growth 5Y3.51%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ENS is still creating some value.
The number of shares outstanding for ENS has been reduced compared to 1 year ago.
Compared to 5 years ago, ENS has less shares outstanding
ENS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.55 indicates that ENS is not in any danger for bankruptcy at the moment.
ENS's Altman-Z score of 3.55 is fine compared to the rest of the industry. ENS outperforms 73.68% of its industry peers.
ENS has a debt to FCF ratio of 7.99. This is a slightly negative value and a sign of low solvency as ENS would need 7.99 years to pay back of all of its debts.
ENS has a Debt to FCF ratio of 7.99. This is in the better half of the industry: ENS outperforms 67.37% of its industry peers.
ENS has a Debt/Equity ratio of 0.57. This is a neutral value indicating ENS is somewhat dependend on debt financing.
ENS has a Debt to Equity ratio (0.57) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 7.99 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.71
WACC8.02%
2.3 Liquidity
A Current Ratio of 2.70 indicates that ENS has no problem at all paying its short term obligations.
ENS has a Current ratio of 2.70. This is in the better half of the industry: ENS outperforms 71.58% of its industry peers.
ENS has a Quick Ratio of 1.74. This is a normal value and indicates that ENS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ENS (1.74) is better than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
ENS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.74%, which is quite impressive.
The Earnings Per Share has been growing by 16.84% on average over the past years. This is quite good.
ENS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.00%.
Measured over the past years, ENS shows a small growth in Revenue. The Revenue has been growing by 3.22% on average per year.
EPS 1Y (TTM)21.74%
EPS 3Y31.61%
EPS 5Y16.84%
EPS Q2Q%42.79%
Revenue 1Y (TTM)1%
Revenue growth 3Y2.52%
Revenue growth 5Y3.22%
Sales Q2Q%7.04%
3.2 Future
ENS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.26% yearly.
Based on estimates for the next years, ENS will show a small growth in Revenue. The Revenue will grow by 3.64% on average per year.
EPS Next Y0.31%
EPS Next 2Y2.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.91%
Revenue Next 2Y3.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.21, which indicates a very decent valuation of ENS.
ENS's Price/Earnings ratio is rather cheap when compared to the industry. ENS is cheaper than 93.68% of the companies in the same industry.
ENS is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
ENS is valuated reasonably with a Price/Forward Earnings ratio of 8.18.
Based on the Price/Forward Earnings ratio, ENS is valued cheaper than 93.68% of the companies in the same industry.
ENS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENS is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENS indicates a somewhat cheap valuation: ENS is cheaper than 77.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.54 | ||
| EV/EBITDA | 6.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ENS does not grow enough to justify the current Price/Earnings ratio.
ENS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)26.8
PEG (5Y)0.49
EPS Next 2Y2.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ENS has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.65, ENS pays a better dividend. On top of this ENS pays more dividend than 86.32% of the companies listed in the same industry.
With a Dividend Yield of 1.15, ENS pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
On average, the dividend of ENS grows each year by 6.15%, which is quite nice.
ENS has been paying a dividend for at least 10 years, so it has a reliable track record.
ENS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.15%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
10.30% of the earnings are spent on dividend by ENS. This is a low number and sustainable payout ratio.
ENS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.3%
EPS Next 2Y2.26%
EPS Next 3YN/A
83.63
-0.34 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.1%
Inst Owner Change0.81%
Ins Owners0.86%
Ins Owner Change-8.06%
Market Cap3.28B
Analysts78.18
Price Target113.64 (35.88%)
Short Float %1.64%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend0.94
Dividend Growth(5Y)6.15%
DP10.3%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.71%
Min EPS beat(2)5.7%
Max EPS beat(2)7.71%
EPS beat(4)4
Avg EPS beat(4)3.8%
Min EPS beat(4)0.4%
Max EPS beat(4)7.71%
EPS beat(8)8
Avg EPS beat(8)3.62%
EPS beat(12)11
Avg EPS beat(12)5.29%
EPS beat(16)14
Avg EPS beat(16)4%
Revenue beat(2)0
Avg Revenue beat(2)-2.33%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)-0.86%
Revenue beat(8)1
Avg Revenue beat(8)-2.76%
Revenue beat(12)3
Avg Revenue beat(12)-1.84%
Revenue beat(16)5
Avg Revenue beat(16)-1.21%
PT rev (1m)-4.05%
PT rev (3m)-4.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.94%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 8.18 | ||
| P/S | 0.91 | ||
| P/FCF | 23.54 | ||
| P/OCF | 12.59 | ||
| P/B | 1.71 | ||
| P/tB | 4 | ||
| EV/EBITDA | 6.95 |
EPS(TTM)10.19
EY12.18%
EPS(NY)10.22
Fwd EY12.22%
FCF(TTM)3.55
FCFY4.25%
OCF(TTM)6.64
OCFY7.94%
SpS92.29
BVpS48.88
TBVpS20.91
PEG (NY)26.8
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.16% | ||
| ROE | 18.98% | ||
| ROCE | 15.14% | ||
| ROIC | 13.74% | ||
| ROICexc | 15.39% | ||
| ROICexgc | 25% | ||
| OM | 13.37% | ||
| PM (TTM) | 10.05% | ||
| GM | 30.2% | ||
| FCFM | 3.85% |
ROA(3y)7.26%
ROA(5y)5.96%
ROE(3y)15.1%
ROE(5y)12.86%
ROIC(3y)12%
ROIC(5y)10.26%
ROICexc(3y)13.57%
ROICexc(5y)11.74%
ROICexgc(3y)22.69%
ROICexgc(5y)20.29%
ROCE(3y)13.22%
ROCE(5y)11.31%
ROICexcg growth 3Y21.68%
ROICexcg growth 5Y6.25%
ROICexc growth 3Y24.31%
ROICexc growth 5Y9.55%
OM growth 3Y25.13%
OM growth 5Y10.1%
PM growth 3Y32.87%
PM growth 5Y17.76%
GM growth 3Y10.57%
GM growth 5Y3.51%
F-Score6
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 7.99 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 119.99% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 9.91 | ||
| Cash Conversion | 44.52% | ||
| Profit Quality | 38.29% | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 3.55 |
F-Score6
WACC8.02%
ROIC/WACC1.71
Cap/Depr(3y)103.77%
Cap/Depr(5y)92.58%
Cap/Sales(3y)2.72%
Cap/Sales(5y)2.54%
Profit Quality(3y)94.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.74%
EPS 3Y31.61%
EPS 5Y16.84%
EPS Q2Q%42.79%
EPS Next Y0.31%
EPS Next 2Y2.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1%
Revenue growth 3Y2.52%
Revenue growth 5Y3.22%
Sales Q2Q%7.04%
Revenue Next Year3.91%
Revenue Next 2Y3.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.15%
EBIT growth 3Y28.28%
EBIT growth 5Y13.64%
EBIT Next Year23.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-62.42%
FCF growth 3YN/A
FCF growth 5Y-1.74%
OCF growth 1Y-43.05%
OCF growth 3YN/A
OCF growth 5Y0.54%