ACUITY INC (AYI) Fundamental Analysis & Valuation

NYSE:AYI • US00508Y1029

Current stock price

290.32 USD
+0.75 (+0.26%)
Last:

This AYI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. AYI Profitability Analysis

1.1 Basic Checks

  • AYI had positive earnings in the past year.
  • AYI had a positive operating cash flow in the past year.
  • In the past 5 years AYI has always been profitable.
  • In the past 5 years AYI always reported a positive cash flow from operatings.
AYI Yearly Net Income VS EBIT VS OCF VS FCFAYI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

1.2 Ratios

  • With an excellent Return On Assets value of 9.43%, AYI belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 15.13%, AYI belongs to the top of the industry, outperforming 85.87% of the companies in the same industry.
  • AYI has a Return On Invested Capital of 13.36%. This is amongst the best in the industry. AYI outperforms 91.30% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AYI is above the industry average of 9.34%.
Industry RankSector Rank
ROA 9.43%
ROE 15.13%
ROIC 13.36%
ROA(3y)9.86%
ROA(5y)9.83%
ROE(3y)16.5%
ROE(5y)16.91%
ROIC(3y)13.42%
ROIC(5y)13.29%
AYI Yearly ROA, ROE, ROICAYI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • AYI's Profit Margin of 9.37% is amongst the best of the industry. AYI outperforms 81.52% of its industry peers.
  • In the last couple of years the Profit Margin of AYI has grown nicely.
  • The Operating Margin of AYI (14.27%) is better than 86.96% of its industry peers.
  • AYI's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 48.73%, AYI belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
  • AYI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 14.27%
PM (TTM) 9.37%
GM 48.73%
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%
AYI Yearly Profit, Operating, Gross MarginsAYI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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7

2. AYI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AYI is still creating some value.
  • The number of shares outstanding for AYI has been reduced compared to 1 year ago.
  • Compared to 5 years ago, AYI has less shares outstanding
  • Compared to 1 year ago, AYI has a worse debt to assets ratio.
AYI Yearly Shares OutstandingAYI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
AYI Yearly Total Debt VS Total AssetsAYI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 6.13 indicates that AYI is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of AYI (6.13) is better than 81.52% of its industry peers.
  • AYI has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.25, AYI belongs to the top of the industry, outperforming 90.22% of the companies in the same industry.
  • A Debt/Equity ratio of 0.25 indicates that AYI is not too dependend on debt financing.
  • AYI has a better Debt to Equity ratio (0.25) than 61.96% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.25
Altman-Z 6.13
ROIC/WACC1.55
WACC8.63%
AYI Yearly LT Debt VS Equity VS FCFAYI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • AYI has a Current Ratio of 2.07. This indicates that AYI is financially healthy and has no problem in meeting its short term obligations.
  • AYI's Current ratio of 2.07 is in line compared to the rest of the industry. AYI outperforms 56.52% of its industry peers.
  • AYI has a Quick Ratio of 1.36. This is a normal value and indicates that AYI is financially healthy and should not expect problems in meeting its short term obligations.
  • AYI has a Quick ratio (1.36) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.07
Quick Ratio 1.36
AYI Yearly Current Assets VS Current LiabilitesAYI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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5

3. AYI Growth Analysis

3.1 Past

  • AYI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.58%, which is quite good.
  • The Earnings Per Share has been growing by 16.88% on average over the past years. This is quite good.
  • Looking at the last year, AYI shows a quite strong growth in Revenue. The Revenue has grown by 15.89% in the last year.
  • 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)18.58%
EPS 3Y11.82%
EPS 5Y16.88%
EPS Q2Q%10.99%
Revenue 1Y (TTM)15.89%
Revenue growth 3Y2.75%
Revenue growth 5Y5.49%
Sales Q2Q%4.91%

3.2 Future

  • Based on estimates for the next years, AYI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.45% on average per year.
  • The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y9.3%
EPS Next 2Y9.32%
EPS Next 3Y9.13%
EPS Next 5Y8.45%
Revenue Next Year5.99%
Revenue Next 2Y5.56%
Revenue Next 3Y5.49%
Revenue Next 5Y5.53%

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.
AYI Yearly Revenue VS EstimatesAYI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B 5B
AYI Yearly EPS VS EstimatesAYI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20 25

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7

4. AYI Valuation Analysis

4.1 Price/Earnings Ratio

  • AYI is valuated correctly with a Price/Earnings ratio of 15.16.
  • Based on the Price/Earnings ratio, AYI is valued cheaper than 93.48% of the companies in the same industry.
  • AYI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.42.
  • The Price/Forward Earnings ratio is 13.48, which indicates a correct valuation of AYI.
  • Based on the Price/Forward Earnings ratio, AYI is valued cheaper than 92.39% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of AYI to the average of the S&P500 Index (22.29), we can say AYI is valued slightly cheaper.
Industry RankSector Rank
PE 15.16
Fwd PE 13.48
AYI Price Earnings VS Forward Price EarningsAYI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AYI is valued cheaply inside the industry as 94.57% of the companies are valued more expensively.
  • 93.48% of the companies in the same industry are more expensive than AYI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.77
EV/EBITDA 11.33
AYI Per share dataAYI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • AYI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • AYI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)0.9
EPS Next 2Y9.32%
EPS Next 3Y9.13%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. AYI Dividend Analysis

5.1 Amount

  • AYI has a yearly dividend return of 0.28%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.24, AYI pays a better dividend. On top of this AYI pays more dividend than 84.78% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, AYI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.28%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.77%
Div Incr Years2
Div Non Decr Years17
AYI Yearly Dividends per shareAYI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • AYI pays out 5.17% of its income as dividend. This is a sustainable payout ratio.
  • AYI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP5.17%
EPS Next 2Y9.32%
EPS Next 3Y9.13%
AYI Yearly Income VS Free CF VS DividendAYI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
AYI Dividend Payout.AYI Dividend Payout, showing the Payout Ratio.AYI Dividend Payout.PayoutRetained Earnings

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AYI Fundamentals: All Metrics, Ratios and Statistics

ACUITY INC

NYSE:AYI (4/27/2026, 1:26:07 PM)

290.32

+0.75 (+0.26%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)04-02
Earnings (Next)06-24
Inst Owners97.67%
Inst Owner Change0.37%
Ins Owners0.32%
Ins Owner Change-1.32%
Market Cap8.80B
Revenue(TTM)4.59B
Net Income(TTM)429.70M
Analysts78.46
Price Target359.82 (23.94%)
Short Float %2.59%
Short Ratio1.66
Dividend
Industry RankSector Rank
Dividend Yield 0.28%
Yearly Dividend0.67
Dividend Growth(5Y)4.77%
DP5.17%
Div Incr Years2
Div Non Decr Years17
Ex-Date04-17
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.83%
Min EPS beat(2)1.15%
Max EPS beat(2)2.51%
EPS beat(4)4
Avg EPS beat(4)6.14%
Min EPS beat(4)1.15%
Max EPS beat(4)14.48%
EPS beat(8)6
Avg EPS beat(8)3.23%
EPS beat(12)9
Avg EPS beat(12)4.07%
EPS beat(16)13
Avg EPS beat(16)5.96%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-1.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-3.5%
Max Revenue beat(4)1.6%
Revenue beat(8)1
Avg Revenue beat(8)-1.8%
Revenue beat(12)1
Avg Revenue beat(12)-2%
Revenue beat(16)4
Avg Revenue beat(16)-1.11%
PT rev (1m)-9.67%
PT rev (3m)-10.25%
EPS NQ rev (1m)-2.52%
EPS NQ rev (3m)-2.7%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)-1.4%
Revenue NQ rev (1m)-3.88%
Revenue NQ rev (3m)-3.96%
Revenue NY rev (1m)-2.34%
Revenue NY rev (3m)-2.34%
Valuation
Industry RankSector Rank
PE 15.16
Fwd PE 13.48
P/S 1.92
P/FCF 15.77
P/OCF 13.76
P/B 3.1
P/tB 30.67
EV/EBITDA 11.33
EPS(TTM)19.15
EY6.6%
EPS(NY)21.53
Fwd EY7.42%
FCF(TTM)18.41
FCFY6.34%
OCF(TTM)21.1
OCFY7.27%
SpS151.29
BVpS93.69
TBVpS9.47
PEG (NY)1.63
PEG (5Y)0.9
Graham Number200.924 (-30.79%)
Profitability
Industry RankSector Rank
ROA 9.43%
ROE 15.13%
ROCE 17.09%
ROIC 13.36%
ROICexc 14.38%
ROICexgc 50.95%
OM 14.27%
PM (TTM) 9.37%
GM 48.73%
FCFM 12.17%
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-Score9
Asset Turnover1.01
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.25
Debt/EBITDA 0.86
Cap/Depr 51.61%
Cap/Sales 1.78%
Interest Coverage 14.23
Cash Conversion 78.72%
Profit Quality 129.88%
Current Ratio 2.07
Quick Ratio 1.36
Altman-Z 6.13
F-Score9
WACC8.63%
ROIC/WACC1.55
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)18.58%
EPS 3Y11.82%
EPS 5Y16.88%
EPS Q2Q%10.99%
EPS Next Y9.3%
EPS Next 2Y9.32%
EPS Next 3Y9.13%
EPS Next 5Y8.45%
Revenue 1Y (TTM)15.89%
Revenue growth 3Y2.75%
Revenue growth 5Y5.49%
Sales Q2Q%4.91%
Revenue Next Year5.99%
Revenue Next 2Y5.56%
Revenue Next 3Y5.49%
Revenue Next 5Y5.53%
EBIT growth 1Y16.27%
EBIT growth 3Y6.64%
EBIT growth 5Y10.39%
EBIT Next Year27.33%
EBIT Next 3Y13.86%
EBIT Next 5Y9.99%
FCF growth 1Y10.69%
FCF growth 3Y27.07%
FCF growth 5Y3.45%
OCF growth 1Y13.36%
OCF growth 3Y23.89%
OCF growth 5Y3.56%

ACUITY INC / AYI Fundamental Analysis FAQ

What is the fundamental rating for AYI stock?

ChartMill assigns a fundamental rating of 7 / 10 to AYI.


Can you provide the valuation status for ACUITY INC?

ChartMill assigns a valuation rating of 7 / 10 to ACUITY INC (AYI). This can be considered as Undervalued.


How profitable is ACUITY INC (AYI) stock?

ACUITY INC (AYI) has a profitability rating of 9 / 10.


What is the valuation of ACUITY INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ACUITY INC (AYI) is 15.16 and the Price/Book (PB) ratio is 3.1.


What is the expected EPS growth for ACUITY INC (AYI) stock?

The Earnings per Share (EPS) of ACUITY INC (AYI) is expected to grow by 9.3% in the next year.