Enersys Stock Intrinsic Value – ENERSYS Reports 22.5% Revenue Increase and 9.0% Net Income Increase for Third Quarter of 2022.
March 14, 2023
Earnings Overview
On February 8 2023, ENERSYS ($NYSE:ENS) reported that their total revenue from the third quarter of 2022 (ending December 31 2022) had increased by 22.5% compared to the same period the year prior, reaching USD 44.4 million. Additionally, net income for the quarter was USD 920.2 million, up 9.0% from the previous year.
Transcripts Simplified
Net sales increased 9% year-on-year to a record $920 million in the third quarter. Adjusted operating earnings were also a record for the company at $85 million, up 41% from the prior year and 30% higher than the second quarter. All lines of business posted strong revenue growth, driven by substantial price/mix improvements. Energy Systems delivered significant improvement to adjusted operating earnings as a result of impressive price/mix cost recapture taking hold for the second consecutive quarter, with nearly 170% adjusted OE improvement versus prior year and over 60% improvement sequentially.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Enersys. More…
| Total Revenues | Net Income | Net Margin |
| 3.63k | 137.95 | 4.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Enersys. More…
| Operations | Investing | Financing |
| 148.29 | -35.26 | -180.71 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Enersys. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.57k | 2.04k | 37.4 |
Key Ratios Snapshot
Some of the financial key ratios for Enersys are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.3% | -1.0% | 6.3% |
| FCF Margin | ROE | ROA |
| 1.9% | 9.7% | 4.0% |
Share Price
On Wednesday, ENERSYS reported an impressive 22.5% increase in revenue for the third quarter of 2022 compared to the same period last year. This significant growth was largely driven by strong sales of their energy storage solutions and related products.
Additionally, their net income also increased by 9.0% for the same period. The news was met with mixed results on the stock market, as ENERSYS stock opened at $85.9 and closed at $86.2, down by 0.9% from its last closing price of 87.0. Analysts believe that the drop was due to investor caution as they wait to see how the company will perform in the fourth quarter and beyond. Overall, the report was a strong indicator of ENERSYS’s continued success and potential to grow in the future. Investors should keep an eye on ENERSYS to gauge their progress in the coming quarters. Live Quote…
Analysis – Enersys Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of ENERSYS‘s fundamentals and have come to a conclusion about the intrinsic value of ENERSYS’s stock. Our proprietary Valuation Line has put the intrinsic value at around $87.6. Comparing this to the current market price of $86.2, it appears that ENERSYS is trading at a fair price, although it is slightly undervalued by 1.5%. This presents an opportunity for investors to purchase the stock at a discounted price. More…
Peers
The company competes with ESS Tech Inc, Shandong Sacred Sun Power Sources Co Ltd, Eos Energy Enterprises Inc, among others. EnerSys has a diversified product portfolio and a strong market position. The company’s products are used in a variety of applications including material handling, oil and gas, power generation, transportation, and other industrial applications.
– ESS Tech Inc ($NYSE:GWH)
Founder and CEO of the company is Jean-luc Roy. The company provides software for the management and analysis of data. The company went public in May of 2017. The company’s market cap as of December of 2020 was $525.68 million. The company’s ROE as of December of 2020 was -188.29%.
– Shandong Sacred Sun Power Sources Co Ltd ($SZSE:002580)
Shandong Sacred Sun Power Sources Co Ltd is a leading manufacturer of solar panels and related products. The company has a market cap of 4.97B as of 2022 and a return on equity of 4.18%. The company’s products are used in a variety of applications, including solar power plants, residential and commercial rooftops, and portable solar power systems.
– Eos Energy Enterprises Inc ($NASDAQ:EOSE)
Eos Energy Enterprises Inc is a publicly traded company with a market capitalization of 86.7 million as of 2022. The company has a return on equity of 163.71%. Eos Energy Enterprises Inc is engaged in the business of developing and commercializing energy storage solutions based on zinc-air batteries.
Summary
ENERSYS (ENS) delivered strong results in the third quarter of 2022 with total revenue up 22.5% year over year to USD 44.4 million and net income increasing 9.0% to USD 920.2 million. Analysts are bullish on the stock, citing the company’s strong fundamentals, stable cash flow, and resilient sales performance in a challenging business environment.
