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EnerSys Message Board

  • jagad5 jagad5 Aug 8, 2013 12:04 PM Flag

    My analysis of ENS

    The stock has about caught up with the performance of the company. Consider that two years ago the stock was selling for ~$20, a single digit PE, while the company was growing consistently in the 10-12% range.

    Next quarter, expect:
    REV - $590M
    NET - $41M
    EPS - $.86

    The current price reflects a future growth rate of about 2.8%. The company has grown revenues at 4% over the last three years and net income at 24% over the same period. If the economy finally starts to grow, revenues will accelerate. But until then, they can only squeeze their margins so high. I suspect their approaching a peak on profit margin so I wouldn't expect to see income continue to grow so much faster than sales. I've started to put in trailing stop orders to preserve my 150% capital gains. I suggest others do the same.

    The market is a funny thing and if we get into a period of irrational exuberance, I wouldn't be surprised if the price went up another $25 or more over the next 12 months. But I wouldn't bank on it.


    Sentiment: Hold

65.12-0.87(-1.32%)Oct 9 4:01 PMEDT