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EnerSys (EnerSys) Altman Z-Score : 4.09 (As of Jul. 20, 2024)


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What is EnerSys Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 4.09 is strong.

EnerSys has a Altman Z-Score of 4.09, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for EnerSys's Altman Z-Score or its related term are showing as below:

ENS' s Altman Z-Score Range Over the Past 10 Years
Min: 2.77   Med: 3.6   Max: 4.36
Current: 4.09

During the past 13 years, EnerSys's highest Altman Z-Score was 4.36. The lowest was 2.77. And the median was 3.60.


EnerSys Altman Z-Score Historical Data

The historical data trend for EnerSys's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

EnerSys Altman Z-Score Chart

EnerSys Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.77 3.30 2.97 3.47 3.94

EnerSys Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.47 4.03 3.86 3.99 3.94

Competitive Comparison of EnerSys's Altman Z-Score

For the Electrical Equipment & Parts subindustry, EnerSys's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


EnerSys's Altman Z-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, EnerSys's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where EnerSys's Altman Z-Score falls into.



EnerSys Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

EnerSys's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.3055+1.4*0.6243+3.3*0.0987+0.6*2.4831+1.0*1.0334
=4.09

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2024:
Total Assets was $3,466 Mil.
Total Current Assets was $1,783 Mil.
Total Current Liabilities was $724 Mil.
Retained Earnings was $2,164 Mil.
Pre-Tax Income was 66.576 + 78.658 + 73.418 + 73.533 = $292 Mil.
Interest Expense was -10.775 + -11.718 + -12.217 + -15.244 = $-50 Mil.
Revenue was 910.721 + 861.548 + 901.033 + 908.569 = $3,582 Mil.
Market Cap (Today) was $4,244 Mil.
Total Liabilities was $1,709 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1782.696 - 723.857)/3466.006
=0.3055

X2=Retained Earnings/Total Assets
=2163.88/3466.006
=0.6243

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(292.185 - -49.954)/3466.006
=0.0987

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4243.536/1708.934
=2.4831

X5=Revenue/Total Assets
=3581.871/3466.006
=1.0334

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

EnerSys has a Altman Z-Score of 4.09 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


EnerSys  (NYSE:ENS) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


EnerSys Altman Z-Score Related Terms

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EnerSys (EnerSys) Business Description

Traded in Other Exchanges
Address
2366 Bernville Road, Reading, PA, USA, 19605
EnerSys provides stored energy solutions for industrial applications. It also manufactures and distributes energy systems solutions and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. Energy Systems which combine enclosures, power conversion, power distribution and energy storage are used in the telecommunication and broadband, utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Its segments include Energy Systems, Motive Power, and Specialty.
Executives
Andrew M. Zogby officer: Pres, Energy Systems-Americas 2366 BERNVILLE ROAD, READING PA 19605
Tamara Morytko director 1250 NE LOOP 410, SUITE 1000, SAN ANTONIO TX 78209
Rudolph W. Wynter director C/O ENERSYS, 2366 BERNVILLE ROAD, READING PA 19605
Andrea J. Funk officer: EVP & Chief Financial Officer C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067
Joern Tinnemeyer officer: Sr. VP & CTO C/O ENERSYS, 2366 BERNVILLE ROAD, READING PA 19605
Shawn M. O'connell officer: Pres, Motive Power Americas 2366 BERNVILLE ROAD, READING PA 19605
David M Shaffer officer: President, EMEA C/O ENERSYS, 2366 BERNVILLE ROAD, READING PA 19605
Caroline Chan director 2366 BERNVILLE ROAD, READING PA 19605
Steven M Fludder director 264 NANTASKET ROAD, HULL MA 02045
Holger P Aschke officer: President - EMEA C/O ENERSYS, 2366 BERNVILLE ROAD, READING PA 19605
Todd M. Sechrist officer: SVP - Americas C/O ENERSYS, 2366 BERNVILLE ROAD, READING PA 19605
Myles Jones officer: President - Asia C/O ENERSYS, 2366 BERNVILLE ROAD, READING PA 19605
Jeffrey W. Long officer: President, Americas C/O ENERSYS, 2366 BERNVILLE ROAD, READING PA 19605
Nelda J Connors director BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752-1234
Ronald P Vargo director 41 UNIVERSITY DRIVE, SUITE 202, NEWTOWN PA 18940