Definitive Analysis
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EnerSys (ENS)

Company Dividend Discount ModelIndustry: Electrical Equipment & PartsSector: Industrials

Valuation Snapshot

Stable Growth$94.68 - $153.31$121.03
Multi-Stage$113.94 - $124.93$119.33
Blended Fair Value$120.18
Current Price$111.15
Upside8.12%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS4.75%1.67%0.950.870.720.740.760.750.750.750.770.78
YoY Growth--8.66%20.83%-2.78%-1.54%0.36%-0.13%0.23%-2.39%-1.55%-2.71%
Dividend Yield--1.11%0.86%0.67%1.26%0.83%1.52%1.11%1.01%1.04%1.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)337.24
(-) Cash Dividends Paid (M)37.79
(=) Cash Retained (M)299.46
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)67.4542.1625.29
Cash Retained (M)299.46299.46299.46
(-) Cash Required (M)-67.45-42.16-25.29
(=) Excess Retained (M)232.01257.30274.16
(/) Shares Outstanding (M)39.4139.4139.41
(=) Excess Retained per Share5.896.536.96
LTM Dividend per Share0.960.960.96
(+) Excess Retained per Share5.896.536.96
(=) Adjusted Dividend6.857.497.92
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.74%2.74%3.74%
Fair Value$94.68$121.03$153.31
Upside / Downside-14.82%8.89%37.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)337.24346.49355.99365.75375.77386.07397.66
Payout Ratio11.20%26.96%42.72%58.48%74.24%90.00%92.50%
Projected Dividends (M)37.7993.42152.09213.89278.98347.47367.83

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.74%2.74%3.74%
Year 1 PV (M)84.8085.6386.47
Year 2 PV (M)125.30127.78130.28
Year 3 PV (M)159.96164.72169.58
Year 4 PV (M)189.37196.92204.70
Year 5 PV (M)214.09224.82235.97
PV of Terminal Value (M)3,716.543,902.814,096.48
Equity Value (M)4,490.064,702.694,923.48
Shares Outstanding (M)39.4139.4139.41
Fair Value$113.94$119.33$124.93
Upside / Downside2.51%7.36%12.40%

High-Yield Dividend Screener

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