Enersys Intrinsic Value – New South Capital Management Decreases Stake in EnerSys by 1.5% in Third Quarter
November 13, 2024
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ENERSYS ($NYSE:ENS) is a leading global provider of stored energy solutions for industrial applications. The company offers a wide range of products, including batteries, chargers, and accessories, to customers in a variety of industries, such as telecommunications, utilities, and transportation. In the third quarter of this year, ENERSYS caught the attention of New South Capital Management Inc., a Tennessee-based investment firm with a diverse portfolio. While a 1.5% decrease may seem small, it could still represent a significant amount of shares depending on the total size of their investment. This move may also indicate the firm’s belief that the stock may not perform as well in the near future or that they are reallocating their funds to other investments. This news could potentially have an impact on the stock price of ENERSYS in the coming months. A decrease in investment by a major shareholder may lead to a decrease in confidence by other investors and could potentially result in a decline in stock value.
However, it is important to keep in mind that Form 13F filings are submitted every quarter and may not necessarily reflect the most current investment strategy of the firm. Overall, while New South Capital Management Inc.’s decrease in stake may raise some concerns among investors, it is important to analyze the company’s financial performance and outlook to determine the potential impact on stock value. As ENERSYS continues to provide innovative stored energy solutions to its customers, it will be interesting to see how the market reacts to this recent development.
Analysis – Enersys Intrinsic Value
As a financial analyst at GoodWhale, I have thoroughly examined the financials of ENERSYS. This company specializes in manufacturing and supplying energy storage systems for industrial and commercial use. In this analysis, I will be discussing key points about ENERSYS’ financials and provide insights on the current value of its stock. Firstly, let’s take a look at ENERSYS’ intrinsic value. Our proprietary Valuation Line estimates the intrinsic value of ENERSYS share to be around $90.1. This calculation takes into account various factors such as the company’s earnings, growth potential, and industry trends. This intrinsic value gives us a baseline for evaluating the current price of ENERSYS stock. Currently, ENERSYS stock is trading at $100.14, which is an 11.2% premium to its intrinsic value. This means that the stock is currently overvalued by 11.2%. As a financial analyst, I would consider this to be a fair price for ENERSYS stock, as it is only slightly overvalued. Investors looking to purchase this stock should carefully consider this premium before making any investment decisions. One factor contributing to the overvaluation of ENERSYS stock could be its recent performance. The company has been showing strong financial results, with increasing revenues and earnings over the past few years. This positive trend may have attracted more investors, leading to an increase in the stock’s price. In conclusion, after examining ENERSYS’ financials and considering its intrinsic value, I believe that the current price of its stock is fair but slightly overvalued. Investors should keep this in mind when making investment decisions regarding ENERSYS stock. It will be interesting to see how the company performs in the coming years and if its stock price remains at a premium or adjusts closer to its intrinsic value. EnerSys_by_1.5_in_Third_Quarter”>More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Enersys. EnerSys_by_1.5_in_Third_Quarter”>More…
| Total Revenues | Net Income | Net Margin |
| 3.66k | 274.13 | 8.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Enersys. EnerSys_by_1.5_in_Third_Quarter”>More…
| Operations | Investing | Financing |
| 464.34 | -96.36 | -338.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Enersys. EnerSys_by_1.5_in_Third_Quarter”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.5k | 1.77k | 42.74 |
Key Ratios Snapshot
Some of the financial key ratios for Enersys are shown below. EnerSys_by_1.5_in_Third_Quarter”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | 16.4% | 9.7% |
| FCF Margin | ROE | ROA |
| 10.2% | 13.1% | 6.3% |
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
New South Capital Management Inc. decreased its ownership in EnerSys by 1.5% in the third quarter. This move could suggest that the investment firm is not as confident in the company’s future performance.
However, it is important to note that this decrease is relatively small, so it may not be a significant cause for concern. Investors should continue to monitor EnerSys closely and analyze their financial reports to make informed decisions about their investments. It is also worth considering the overall market conditions and industry trends that may impact EnerSys’ stock price and future growth potential.
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