EnerSys $ENS - Profitable, undercover U.S.-based battery play trading at 1x sales and 11 P/E Every other battery stock is trading at premium valuations based on hype & speculation about their technologies, and the domestic battery supply theme is gaining steam with China most recently applying pressure not only in rare earths, but batteries as well. EnerSys is a real business that is growing, profitable, and cheap. I think it also directly cross-applies to the broader 'power grid' thematic. ENS has two divisions: Energy Systems: UPS, telecom/broadband power, switchgear & electrical control systems for utilities, thermally‑managed cabinets/enclosures, large‑scale energy storage. New Ventures: Utility back‑up, demand‑charge reduction, dynamic fast charging. Product relevance to current themes in the market: - PowerSafe / DataSafe Systems: stationary batteries for switchgear/substations and UPS/data centers. - Alpha DC Power Systems: Cordex rectifiers and CXC HP controllers for 48V and higher‑capacity DC plant and outdoor enclosures for telecom & utility field nodes. - Defense‑grade lithium packs (U.S./NATO customers): EnerSys acquired Bren‑Tronics (July 2024) for $208M (immediately accretive; ~$100M 2023 sales) The Bren-Tronics component I think is especially relevant in the current environment with China applying leverage in batteries specifically for military applications. This subsidiary alone deserves a rerating. In September 2024, EnerSys was selected to enter into award negotiations for a $199 million U.S. DOE grant (through the DOE’s Office of Manufacturing & Energy Supply Chains) under the BIL (Bipartisan Infrastructure Law) Battery Materials / Manufacturing grants. The stated plan is for EnerSys to build a lithium-ion cell manufacturing facility in Greenville, SC (500K sq ft), targeting production of advanced cells for industrial, commercial, and defense uses. The DOE contract was finalized on January 17, 2025, officially securing the $199M award. The facility is intended to produce cells exclusively for EnerSys products, supporting critical customers including the DoD, which has requirements for domestically sourced battery supply. The award is technically under "review" by the Trump admin who are reviewing mostly clean energy awards under the IRA, but this award fits directly with Trump's recent policy focus around lithium/battery supply, so I doubt this will be a candidate for reversal. Domestic‑content tailwind: ENS manufactures in the U.S. and recognized $184.6M of Section 45X credits in FY’25 (booked as COGS reduction), improving cost‑position on U.S. projects. To qualify for these credits, significant domestic content was required. Based on peer valuations, I think this stock is significantly mispriced. The current investor appetite for U.S. exposure to batteries is ripe. $ENS fits directly into the domestic battery supply chain theme. The animal spirits in the battery theme currently with $GWH $EOSE $ABAT $FLNC $MVST $QS etc. reinforce the view of repricing potential. $ENS will act as a complement in my portfolio to $PLPC in the 'Power Grid' basket, with more direct battery exposure.