EnerSys Common Stock (ENS)

FairStock Score: 44/100 — MIXED

Key Financials

Strengths

• Generates $410 million in annual free cash flow (5.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 16.7% above cost of capital
• Established organization with 10,858 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($97) with negative 117% margin of safety—limited downside protection

AI Analysis

EnerSys Common Stock is a small-cap industrials company valued at $7.7 billion. The business generates $3.7 billion in annual revenue with a 2.4% net margin and $410 million in free cash flow. From a quality standpoint, EnerSys shows solid Piotroski F-Score of 7/9 and healthy Altman Z-Score of 3.8. On valuation, the stock is trading at a premium 25.8x earnings, with trades far above its Graham Number ($97) with no margin of safety. Growth dynamics show revenue growing at 1.4% and profit growth of -21.3%. Our composite FairStock Score of 44/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $410 million in annual free cash flow (5.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer