ACUITY INC (AYI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AYI - US00508Y1029 - Common Stock
362.84 USD
+3.01 (+0.84%)
363.74 USD
+0.9 (+0.25%)
AYI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 91 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making AYI a very profitable company, without any liquidiy or solvency issues. AYI has a correct valuation and a medium growth rate. With these ratings, AYI could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
AYI had positive earnings in the past year.
In the past year AYI had a positive cash flow from operations.
AYI had positive earnings in each of the past 5 years.
In the past 5 years AYI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.34%, AYI belongs to the best of the industry, outperforming 86.81% of the companies in the same industry.
AYI has a Return On Equity of 14.55%. This is amongst the best in the industry. AYI outperforms 86.81% of its industry peers.
AYI has a better Return On Invested Capital (12.25%) than 90.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AYI is above the industry average of 9.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 14.55% | ||
| ROIC | 12.25% |
ROA(3y)9.86%
ROA(5y)9.83%
ROE(3y)16.5%
ROE(5y)16.91%
ROIC(3y)13.42%
ROIC(5y)13.29%
1.3 Margins
The Profit Margin of AYI (9.13%) is better than 83.52% of its industry peers.
AYI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.10%, AYI belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
AYI's Operating Margin has improved in the last couple of years.
AYI's Gross Margin of 47.83% is amongst the best of the industry. AYI outperforms 91.21% of its industry peers.
In the last couple of years the Gross Margin of AYI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.1% | ||
| PM (TTM) | 9.13% | ||
| GM | 47.83% |
OM growth 3Y3.79%
OM growth 5Y4.65%
PM growth 3Y-1.62%
PM growth 5Y4.1%
GM growth 3Y4.63%
GM growth 5Y2.56%
2. Health
2.1 Basic Checks
AYI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AYI has been reduced compared to 1 year ago.
The number of shares outstanding for AYI has been reduced compared to 5 years ago.
AYI has a worse debt/assets ratio than last year.
2.2 Solvency
AYI has an Altman-Z score of 6.09. This indicates that AYI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.09, AYI belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
The Debt to FCF ratio of AYI is 1.68, which is an excellent value as it means it would take AYI, only 1.68 years of fcf income to pay off all of its debts.
AYI's Debt to FCF ratio of 1.68 is amongst the best of the industry. AYI outperforms 91.21% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that AYI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.33, AYI perfoms like the industry average, outperforming 56.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.43
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.95 indicates that AYI should not have too much problems paying its short term obligations.
AYI has a Current ratio of 1.95. This is comparable to the rest of the industry: AYI outperforms 56.04% of its industry peers.
A Quick Ratio of 1.33 indicates that AYI should not have too much problems paying its short term obligations.
AYI has a Quick ratio (1.33) which is in line with its industry peers.
AYI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
AYI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.88%, which is quite good.
AYI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.88% yearly.
AYI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.14%.
Measured over the past years, AYI shows a small growth in Revenue. The Revenue has been growing by 5.49% on average per year.
EPS 1Y (TTM)15.88%
EPS 3Y11.82%
EPS 5Y16.88%
EPS Q2Q%20.93%
Revenue 1Y (TTM)13.14%
Revenue growth 3Y2.75%
Revenue growth 5Y5.49%
Sales Q2Q%17.13%
3.2 Future
AYI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.11% yearly.
The Revenue is expected to grow by 6.30% on average over the next years.
EPS Next Y11.54%
EPS Next 2Y10.61%
EPS Next 3Y10.3%
EPS Next 5Y9.11%
Revenue Next Year9.35%
Revenue Next 2Y7.23%
Revenue Next 3Y6.24%
Revenue Next 5Y6.3%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
AYI is valuated rather expensively with a Price/Earnings ratio of 20.14.
AYI's Price/Earnings ratio is rather cheap when compared to the industry. AYI is cheaper than 83.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, AYI is valued a bit cheaper.
AYI is valuated rather expensively with a Price/Forward Earnings ratio of 18.05.
Based on the Price/Forward Earnings ratio, AYI is valued cheaper than 82.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, AYI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 18.05 |
4.2 Price Multiples
82.42% of the companies in the same industry are more expensive than AYI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AYI is valued cheaply inside the industry as 87.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.84 | ||
| EV/EBITDA | 15.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AYI may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)1.19
EPS Next 2Y10.61%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, AYI is not a good candidate for dividend investing.
AYI's Dividend Yield is rather good when compared to the industry average which is at 0.28. AYI pays more dividend than 80.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, AYI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
The dividend of AYI has a limited annual growth rate of 4.77%.
AYI has been paying a dividend for at least 10 years, so it has a reliable track record.
AYI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.77%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
AYI pays out 5.19% of its income as dividend. This is a sustainable payout ratio.
The dividend of AYI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP5.19%
EPS Next 2Y10.61%
EPS Next 3Y10.3%
362.84
+3.01 (+0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97.83%
Inst Owner Change-7.03%
Ins Owners0.31%
Ins Owner Change5.58%
Market Cap11.11B
Revenue(TTM)4.35B
Net Income(TTM)396.60M
Analysts78.46
Price Target407.56 (12.32%)
Short Float %2.37%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.67
Dividend Growth(5Y)4.77%
DP5.19%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.44%
Min EPS beat(2)6.41%
Max EPS beat(2)14.48%
EPS beat(4)3
Avg EPS beat(4)5.44%
Min EPS beat(4)-0.15%
Max EPS beat(4)14.48%
EPS beat(8)6
Avg EPS beat(8)4.95%
EPS beat(12)9
Avg EPS beat(12)5.41%
EPS beat(16)13
Avg EPS beat(16)7.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)1.6%
Revenue beat(4)1
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)1.6%
Revenue beat(8)1
Avg Revenue beat(8)-1.51%
Revenue beat(12)2
Avg Revenue beat(12)-1.8%
Revenue beat(16)6
Avg Revenue beat(16)-0.46%
PT rev (1m)0%
PT rev (3m)15.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.55%
EPS NY rev (1m)0%
EPS NY rev (3m)3.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 18.05 | ||
| P/S | 2.56 | ||
| P/FCF | 20.84 | ||
| P/OCF | 18.47 | ||
| P/B | 4.08 | ||
| P/tB | 85.17 | ||
| EV/EBITDA | 15.53 |
EPS(TTM)18.02
EY4.97%
EPS(NY)20.1
Fwd EY5.54%
FCF(TTM)17.41
FCFY4.8%
OCF(TTM)19.65
OCFY5.41%
SpS141.97
BVpS89.02
TBVpS4.26
PEG (NY)1.75
PEG (5Y)1.19
Graham Number189.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 14.55% | ||
| ROCE | 15.68% | ||
| ROIC | 12.25% | ||
| ROICexc | 13.74% | ||
| ROICexgc | 53.67% | ||
| OM | 14.1% | ||
| PM (TTM) | 9.13% | ||
| GM | 47.83% | ||
| FCFM | 12.27% |
ROA(3y)9.86%
ROA(5y)9.83%
ROE(3y)16.5%
ROE(5y)16.91%
ROIC(3y)13.42%
ROIC(5y)13.29%
ROICexc(3y)16.41%
ROICexc(5y)15.82%
ROICexgc(3y)53.29%
ROICexgc(5y)50.03%
ROCE(3y)17.17%
ROCE(5y)17%
ROICexgc growth 3Y7.33%
ROICexgc growth 5Y2.88%
ROICexc growth 3Y-4.26%
ROICexc growth 5Y1.69%
OM growth 3Y3.79%
OM growth 5Y4.65%
PM growth 3Y-1.62%
PM growth 5Y4.1%
GM growth 3Y4.63%
GM growth 5Y2.56%
F-Score5
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 51.39% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 15.13 | ||
| Cash Conversion | 80.63% | ||
| Profit Quality | 134.39% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 6.09 |
F-Score5
WACC8.55%
ROIC/WACC1.43
Cap/Depr(3y)64.4%
Cap/Depr(5y)59.31%
Cap/Sales(3y)1.64%
Cap/Sales(5y)1.52%
Profit Quality(3y)137.86%
Profit Quality(5y)120.07%
High Growth Momentum
Growth
EPS 1Y (TTM)15.88%
EPS 3Y11.82%
EPS 5Y16.88%
EPS Q2Q%20.93%
EPS Next Y11.54%
EPS Next 2Y10.61%
EPS Next 3Y10.3%
EPS Next 5Y9.11%
Revenue 1Y (TTM)13.14%
Revenue growth 3Y2.75%
Revenue growth 5Y5.49%
Sales Q2Q%17.13%
Revenue Next Year9.35%
Revenue Next 2Y7.23%
Revenue Next 3Y6.24%
Revenue Next 5Y6.3%
EBIT growth 1Y10.16%
EBIT growth 3Y6.64%
EBIT growth 5Y10.39%
EBIT Next Year29.87%
EBIT Next 3Y13.28%
EBIT Next 5Y10.85%
FCF growth 1Y-4%
FCF growth 3Y27.07%
FCF growth 5Y3.45%
OCF growth 1Y-2.87%
OCF growth 3Y23.89%
OCF growth 5Y3.56%
ACUITY INC / AYI FAQ
What is the fundamental rating for AYI stock?
ChartMill assigns a fundamental rating of 7 / 10 to AYI.
What is the valuation status for AYI stock?
ChartMill assigns a valuation rating of 6 / 10 to ACUITY INC (AYI). This can be considered as Fairly Valued.
What is the profitability of AYI stock?
ACUITY INC (AYI) has a profitability rating of 9 / 10.
What are the PE and PB ratios of ACUITY INC (AYI) stock?
The Price/Earnings (PE) ratio for ACUITY INC (AYI) is 20.14 and the Price/Book (PB) ratio is 4.08.
What is the earnings growth outlook for ACUITY INC?
The Earnings per Share (EPS) of ACUITY INC (AYI) is expected to grow by 11.54% in the next year.