What: Shares of battery company EnerSys (NYSE:ENS) dropped 13.4% in January as business conditions declined.

So what: Fiscal third-quarter results announced at the end of January showed a 6% decline in revenue to $573.6 million and net income fell 22% to $38.5 million, or $0.92 per share on an adjusted basis. Most of the decline was due to weaker demand in the Middle East and Asia and a strong dollar made declining demand look even worse.  

It didn't help sentiment that most energy and industrial suppliers are down as a result of declining demand. EnerSys' quarterly results were just a reminder of how much this business has slumped.

Now what: With customers putting off spending because of low commodity prices, I don't see a near-term improvement in operations. But shares do trade at just 11 times forward earnings estimates and EnerSys has been able to remain solidly profitable amid dropping demand. Eventually demand will pick back up, and when it does, investors buying at the current valuation could benefit.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.