ACUITY INC (AYI) Stock Fundamental Analysis
NYSE:AYI - New York Stock Exchange, Inc. - US00508Y1029 - Common Stock - Currency: USD
Taking everything into account, AYI scores 7 out of 10 in our fundamental rating. AYI was compared to 97 industry peers in the Electrical Equipment industry. AYI gets an excellent profitability rating and is at the same time showing great financial health properties. AYI has a decent growth rate and is not valued too expensively. These ratings could make AYI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
AYI had positive earnings in the past year.
AYI had a positive operating cash flow in the past year.
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
The Return On Assets of AYI (9.10%) is better than 91.75% of its industry peers.
AYI has a better Return On Equity (16.54%) than 90.72% of its industry peers.
AYI has a Return On Invested Capital of 11.21%. This is amongst the best in the industry. AYI outperforms 88.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AYI is above the industry average of 9.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.1% | ||
| ROE | 16.54% | ||
| ROIC | 11.21% |
ROA(3y)10.75%
ROA(5y)9.59%
ROE(3y)18.34%
ROE(5y)16.33%
ROIC(3y)13.97%
ROIC(5y)12.72%
1.3 Margins
AYI has a Profit Margin of 10.53%. This is amongst the best in the industry. AYI outperforms 89.69% of its industry peers.
AYI's Profit Margin has improved in the last couple of years.
AYI's Operating Margin of 13.86% is amongst the best of the industry. AYI outperforms 86.60% of its industry peers.
In the last couple of years the Operating Margin of AYI has grown nicely.
With an excellent Gross Margin value of 46.94%, AYI belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
In the last couple of years the Gross Margin of AYI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.86% | ||
| PM (TTM) | 10.53% | ||
| GM | 46.94% |
OM growth 3Y5.17%
OM growth 5Y2.68%
PM growth 3Y7.53%
PM growth 5Y4.11%
GM growth 3Y2.86%
GM growth 5Y2.86%
2. Health
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.
AYI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AYI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.90 indicates that AYI is not in any danger for bankruptcy at the moment.
AYI has a better Altman-Z score (4.90) than 84.54% of its industry peers.
The Debt to FCF ratio of AYI is 2.41, which is a good value as it means it would take AYI, 2.41 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.41, AYI is doing good in the industry, outperforming 79.38% of the companies in the same industry.
AYI has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.40, AYI perfoms like the industry average, outperforming 52.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 4.9 |
ROIC/WACC1.29
WACC8.72%
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 55.67% 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's Quick ratio of 1.36 is fine compared to the rest of the industry. AYI outperforms 60.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.97% over the past year.
The Earnings Per Share has been growing by 10.15% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.78% in the past year.
AYI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.90% yearly.
EPS 1Y (TTM)8.97%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%10.36%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%11.08%
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 10.83% on average per year.
AYI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.12% yearly.
EPS Next Y10.09%
EPS Next 2Y11.41%
EPS Next 3Y10.15%
EPS Next 5Y10.83%
Revenue Next Year13.26%
Revenue Next 2Y11.76%
Revenue Next 3Y9.54%
Revenue Next 5Y8.12%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AYI is valuated correctly with a Price/Earnings ratio of 15.07.
Based on the Price/Earnings ratio, AYI is valued cheaper than 82.47% 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 28.92.
The Price/Forward Earnings ratio is 12.61, which indicates a correct valuation of AYI.
Based on the Price/Forward Earnings ratio, AYI is valued cheaper than 84.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, AYI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.07 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AYI indicates a somewhat cheap valuation: AYI is cheaper than 79.38% of the companies listed in the same industry.
80.41% of the companies in the same industry are more expensive than AYI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.55 | ||
| EV/EBITDA | 12.72 |
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)1.49
PEG (5Y)1.49
EPS Next 2Y11.41%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
AYI has a yearly dividend return of 0.30%, which is pretty low.
The stock price of AYI dropped by -27.34% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.54, AYI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.30, AYI pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
5.2 History
The dividend of AYI has a limited annual growth rate of 2.39%.
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)2.39%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
AYI pays out 4.65% 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.
DP4.65%
EPS Next 2Y11.41%
EPS Next 3Y10.15%
243.43
+9.24 (+3.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.41%
Inst Owner Change0.43%
Ins Owners0.23%
Ins Owner Change6.32%
Market Cap7.52B
Analysts75.38
Price Target331.72 (36.27%)
Short Float %3.22%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend0.59
Dividend Growth(5Y)2.39%
DP4.65%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.43%
Min EPS beat(2)-0.15%
Max EPS beat(2)1.01%
EPS beat(4)2
Avg EPS beat(4)0.32%
Min EPS beat(4)-0.5%
Max EPS beat(4)1.01%
EPS beat(8)5
Avg EPS beat(8)3.03%
EPS beat(12)9
Avg EPS beat(12)5.91%
EPS beat(16)13
Avg EPS beat(16)8.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)-1.46%
Revenue beat(4)0
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-2.28%
Revenue beat(12)3
Avg Revenue beat(12)-1%
Revenue beat(16)7
Avg Revenue beat(16)0.12%
PT rev (1m)-2.84%
PT rev (3m)1.87%
EPS NQ rev (1m)-7.49%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)-2.64%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)10.55%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)5.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.07 | ||
| Fwd PE | 12.61 | ||
| P/S | 1.9 | ||
| P/FCF | 16.55 | ||
| P/OCF | 14.52 | ||
| P/B | 2.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.72 |
EPS(TTM)16.15
EY6.63%
EPS(NY)19.3
Fwd EY7.93%
FCF(TTM)14.71
FCFY6.04%
OCF(TTM)16.77
OCFY6.89%
SpS128.1
BVpS81.57
TBVpS-1.78
PEG (NY)1.49
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.1% | ||
| ROE | 16.54% | ||
| ROCE | 14.52% | ||
| ROIC | 11.21% | ||
| ROICexc | 12.53% | ||
| ROICexgc | 52.51% | ||
| OM | 13.86% | ||
| PM (TTM) | 10.53% | ||
| GM | 46.94% | ||
| FCFM | 11.48% |
ROA(3y)10.75%
ROA(5y)9.59%
ROE(3y)18.34%
ROE(5y)16.33%
ROIC(3y)13.97%
ROIC(5y)12.72%
ROICexc(3y)16.85%
ROICexc(5y)15.41%
ROICexgc(3y)49.26%
ROICexgc(5y)48.03%
ROCE(3y)18.09%
ROCE(5y)16.46%
ROICexcg growth 3Y8%
ROICexcg growth 5Y1.88%
ROICexc growth 3Y10.62%
ROICexc growth 5Y2.06%
OM growth 3Y5.17%
OM growth 5Y2.68%
PM growth 3Y7.53%
PM growth 5Y4.11%
GM growth 3Y2.86%
GM growth 5Y2.86%
F-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 65.16% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 20.79 | ||
| Cash Conversion | 80.17% | ||
| Profit Quality | 109.02% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 4.9 |
F-Score5
WACC8.72%
ROIC/WACC1.29
Cap/Depr(3y)67.14%
Cap/Depr(5y)59.9%
Cap/Sales(3y)1.59%
Cap/Sales(5y)1.54%
Profit Quality(3y)115.61%
Profit Quality(5y)129.43%
High Growth Momentum
Growth
EPS 1Y (TTM)8.97%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%10.36%
EPS Next Y10.09%
EPS Next 2Y11.41%
EPS Next 3Y10.15%
EPS Next 5Y10.83%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%11.08%
Revenue Next Year13.26%
Revenue Next 2Y11.76%
Revenue Next 3Y9.54%
Revenue Next 5Y8.12%
EBIT growth 1Y4.73%
EBIT growth 3Y8.89%
EBIT growth 5Y3.61%
EBIT Next Year24.66%
EBIT Next 3Y13.78%
EBIT Next 5Y11.5%
FCF growth 1Y6.36%
FCF growth 3Y15.02%
FCF growth 5Y4.68%
OCF growth 1Y4.6%
OCF growth 3Y14.85%
OCF growth 5Y4.59%