EnerSys (ENS): An Overlooked Winner in Battery Storage?

The energy storage revolution is accelerating … But one company that might not be getting the attention it deserves is EnerSys (NYSE: ENS). 

As battery deployment grows exponentially, the demand for advanced energy storage solutions is skyrocketing — positioning ENS for long-term success. 

With an A-rated status in our Zen Ratings system and a compelling risk-reward profile, here’s why investors should take a closer look.

Transforming Into a Battery Powerhouse

EnerSys is in the middle of a major strategic shift, moving away from its traditional lead-acid battery dominance to embrace lithium-ion and advanced energy storage technologies. 

This aligns perfectly with the broader industry trend favoring maintenance-free, high-performance battery solutions … especially across critical sectors like logistics, defense, and energy infrastructure.

Here’s a breakdown of EnerSys’s four key business segments:

• Energy Systems (44% of revenue) – Provides power solutions for data centers, telecom, and industrial power.
• Motive Power (42% of revenue) – Supplies electric forklifts, mining vehicles, and automated warehouses.
• Specialty (15% of revenue) – Focuses on transportation, aerospace, and defense applications.
• New Ventures – A high-growth segment working on fast-charging tech, demand charge reduction, and utility backup power.

The company recently acquired Bren-Tronics for $208M, strengthening its defense energy storage capabilities — an area that continues to see significant funding.

ENS is a smaller company not followed by many analysts, but the two top Wall Street analysts who do cover it rate it strongly and have price targets 13-18+% higher from here:

See ENS price targets here.

The Battery Storage Boom: A Mega-Trend Favoring ENS

Battery storage deployment is growing exponentially, fueled by the global push toward renewable energy, EV infrastructure expansion, and grid modernization.

In fact, batteries are set to become the dominant form of energy storage starting in 2025:

Source: Exponential View

This trend is bullish for ENS for several reasons:

• ENS is expanding its portfolio beyond lead-acid to lithium-ion and hybrid storage solutions, which are essential for EV charging networks, microgrids, and commercial power backup.
• The Inflation Reduction Act (IRA) provides substantial financial incentives, adding $155M annually to ENS’s earnings (~$3.93 EPS). These credits run through 2032, offering a stable, predictable boost to profitability.
• ENS is building a 500,000 sq ft lithium-ion gigafactory, expected to be operational between 2027 and 2028. This ensures cost efficiency, vertical integration, and a steady supply of batteries across all segments. 
• Unlike EV-focused battery players, ENS has broad exposure to data centers, defense, industrial power, and automated warehouses, reducing dependence on consumer EV cycles.

Is ENS Mispriced?

Despite these tailwinds, ENS could be undervalued. The company’s forward P/E sits at 9.85, well below the broader market and many battery storage peers. 

Our Zen Component Grades score also gives ENS an A in value based on factors like earnings yield, cash flow yield, and more.

See how ENS scores on Growth, Momentum, and more here.

There’s a chance the market doesn’t fully appreciate the impact of IRA credits, strategic acquisitions, and increasing demand for advanced energy solutions … resulting in potential undervaluation. 

By the way: we think value stocks will shine in 2025. Here’s why. 

Bottom line? As the market continues to underestimate ENS’s transformation, smart investors may want to pay attention before Wall Street catches up.

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