Research

ENS – Market expectations are for Uniform ROA to compress, but management is confident about their investments, technology, and expansion progress

November 3, 2020
  • EnerSys (ENS:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.9x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, but management is confident about their power investments, technology aligning with the requirements, and thin plate pure lead expansion progress
  • Specifically, management is confident in their ability to keep factories open and that the additional network demand will require more power investments to ensure network resiliency. In addition, they are confident about their enabling technology and the continued progress in their thin plate pure lead expansion