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    A Look At EnerSys (ENS) Valuation After Tijuana Plant Closure And TPPL Manufacturing Shift

    Simply Wall St·03/26/2026 04:29:40
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    EnerSys (ENS) is reshaping its manufacturing footprint after announcing plans to close its legacy lead-acid battery plant in Tijuana, Mexico, and concentrate production at its TPPL facility in Springfield, Missouri.

    See our latest analysis for EnerSys.

    The restructuring news has arrived after a period of strong momentum, with the share price at US$177.42 and a 90-day share price return of 18.46%. The 1-year total shareholder return sits at 85.59%, pointing to investors reassessing both growth potential and risk.

    If you are looking beyond EnerSys and want to see what else is moving in power and grid technology, it is worth checking out our 25 power grid technology and infrastructure stocks

    With EnerSys shares up 85.59% over the past year and trading at US$177.42, plus an indicated intrinsic discount of about 14%, the key question now is whether there is still a buying opportunity or if the market is already pricing in future growth.

    Most Popular Narrative: 5.7% Undervalued

    The most followed valuation narrative pegs EnerSys at a fair value of $188.10, slightly above the last close at $177.42, framing the recent rally as still leaving some upside according to those assumptions.

    Major cost reduction initiatives, including a strategic realignment and transition to Centers of Excellence (CoEs), are expected to generate $80 million in annualized savings starting in fiscal 2026, structurally expanding net and operating margins. Recent and ongoing acquisitions in the defense and specialty lithium ion segments (such as Rebel Systems and Bren Tronics) are broadening EnerSys' presence in high growth, premium product markets, which is expected to increase both revenue and gross margins.

    Read the complete narrative.

    Want to see what sits behind that valuation gap? The narrative leans on steady revenue compounding, firmer margins, and a future earnings multiple below many sector peers. Curious which specific growth and profitability assumptions have been baked in, and how they link back to that fair value line? The full story connects those moving parts in a way the current share price alone does not.

    Result: Fair Value of $188.10 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this depends on organic growth stabilising, and on trade policy or tariff pressures not causing a prolonged drag on Motive Power and other key segments.

    Find out about the key risks to this EnerSys narrative.

    Next Steps

    The narrative so far points to optimism around EnerSys, but the real test is how you read the numbers and risks yourself. To see what those potential upsides look like in detail, take a closer look at the 3 key rewards.

    Looking for more investment ideas?

    If EnerSys has caught your eye, do not stop here. Use the tools available to broaden your watchlist, compare opportunities, and pressure test your next move.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.