EnerSys (ENS:NYS) Fundamental Valuation Report



Fundamental Valuation Report

EnerSys(ENS:NYS)

Technology:Electronic Components

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$58.61 (USD) 29/05/2019

Weighted Valuation
$91.85 (USD)

Overall Rating
Undervalued by 56.7%

Valuation Models Analyst Consensus: $94.00 (USD)
(in order of importance) Discounted Cash Flow: $93.55 (USD)
Adjusted Book Value: $81.99 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (ENS:NYS USD)

Price 58.61
Range 58.30 – 59.51
52 week 58.61 – 88.82
Open 59.40
Vol / Avg. 291164/377200
Mkt cap 2.52B
P/E 12.82
Div/yield 0.70/0.01
EPS 3.73
Shares 43.05M
Beta 1.32

Company Description

EnerSys is one of the world’s leading producers and distributors of industrial batteries, with product lines that include reserve and motive power products. Reserve power products are used for backup power solutions for the continuous operation of critical applications, primarily within the telecommunications industry. Motive power products are used for electrical industrial forklifts in manufacturing and warehousing settings. At the end of fiscal year 2018, EnerSys employed 9,600 people worldwide and generated $2.6 billion in sales.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for ENS:NYS

Using a discounted cash flow model we generated an intrinsic value of $93.55 (USD) for ENS:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

ENS:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $93.55 1% 5% 1% 5%
WACC (or Ke) 9.23 $114.30 $78.54
Terminal Growth Rate 3.00 $80.17 $112.06
Tax Rate 0.29 $101.51 $85.60
Cash Flow 466,361,206 $87.95 $99.16
Capital Expenditures 3,003,400 $93.59 $93.52
Long Term Debt 621,146,000 $94.27 $92.83

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $96.53 (USD) for ENS:NYS. We also generated a valuation of $66.67 (USD) using other metrics and comparables.
The comparable companies were Sanmina (SANM:NAS), Plug Power (PLUG:NAS), Advanced Energy Indus (AEIS:NAS), CTS (CTS:NYS) and Vicor (VICR:NAS).

Company ENS:NYS End Date Value
Earnings/Share $3.73 (USD)
Book Value/Share $30.41 (USD)
Sales/Share $63.07 (USD)
Cash Flow/Share $5.79 (USD)
EBITDA/Share $0.00 (USD)
Price Based on Comps Adjustment Factor (%)
$99.48 (USD) -51.5
$118.62 (USD) -6.9
$176.07 (USD) -19.7
$165.50 (USD) -48.0
$0.00 (USD) -10.4
ENS:NYS Ratios Used Average Values SANM:NAS PLUG:NAS AEIS:NAS CTS:NYS VICR:NAS
15.14 PE Ratio 26.67 21.61 0.00 15.44 21.55 48.09
2.28 PB Ratio 45.25 1.48 210.67 3.64 2.54 7.94
1.10 PS Ratio 2.79 0.30 3.12 3.16 2.11 5.27
11.94 PCF Ratio 28.56 34.08 0.00 15.03 21.09 44.05
12.20 EV to EBITDA 16.84 12.35 0.00 9.80 11.38 33.81

Multiples

Using a multiples approach we generated a valuation of  $79.54 (USD) for ENS:NYS

Company ENS:NYS End Date Value
Earnings/Share $3.73 (USD)
Book Value/Share $30.41 (USD)
Sales/Share $63.07 (USD)
Cash Flow/Share $5.79 (USD)
EBITDA/Share $7.39 (USD)
Price Based on Comps Adjustment Factor
$75.02 (USD) 0
$81.55 (USD) 0
$79.05 (USD) 0
$81.48 (USD) 0
$80.61 (USD) 0
Ratios Ratio Average
PE Ratio 20.11
PB Ratio 2.68
PS Ratio 1.25
PCF Ratio 14.06
EV to EBITDA 10.91

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  ENS:NYS for the last 10 years was  2.63

We ran the Adjusted Book Value for  ENS:NYS and generated a book value of  $31.23 (USD)
By multiplying these we get an adjusted valuation of  $81.99 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for ENS:NYS. The 1 analysts have a concensus valuation for ENS:NYS for 2020 of $94.00 (USD).

ENS:NYS EnerSys

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 0 0 5.0000 Buy 2019-5-28

Current Price: 58.61 USD

Analyst Consensus
USD Millions 2019 2020
Mean EPS 6.15 6.09
# EPS Analysts 1 1
Mean Revenue 3,364.00 3,364.00
# Revenue Analysts 1 1
Mean Target Price 94.00
Mean Cash Flow 5.63 8.50
Mean EBITDA
Mean Net Income 212.60 270.10
Mean Debt Outstanding
Mean Tax Rate 12.80 19.50
Mean Growth Rate 10.00
Mean Capital Expenditure 80.00 77.40

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


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