ACUITY INC (AYI) Stock Fundamental Analysis
USA - NYSE:AYI - US00508Y1029 - Common Stock
344.52 USD
+4.82 (+1.42%)
344.52 USD
0 (0%)
AYI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 92 industry peers in the Electrical Equipment industry. AYI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
In the past year AYI was profitable.
In the past year AYI had a positive cash flow from operations.
AYI had positive earnings in each of the past 5 years.
Each year in the past 5 years AYI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.64%, AYI belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
AYI has a Return On Equity of 15.54%. This is amongst the best in the industry. AYI outperforms 89.13% of its industry peers.
With an excellent Return On Invested Capital value of 11.84%, AYI belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
AYI had an Average Return On Invested Capital over the past 3 years of 13.97%. This is above the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.64% | ||
| ROE | 15.54% | ||
| ROIC | 11.84% |
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 better Profit Margin (9.63%) than 85.87% of its industry peers.
In the last couple of years the Profit Margin of AYI has grown nicely.
AYI has a better Operating Margin (14.14%) than 86.96% of its industry peers.
AYI's Operating Margin has improved in the last couple of years.
The Gross Margin of AYI (47.40%) is better than 93.48% of its industry peers.
AYI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.14% | ||
| PM (TTM) | 9.63% | ||
| GM | 47.4% |
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
AYI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AYI has less shares outstanding
AYI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AYI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.81 indicates that AYI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.81, AYI belongs to the best of the industry, outperforming 85.87% of the companies in the same industry.
The Debt to FCF ratio of AYI is 1.97, which is an excellent value as it means it would take AYI, only 1.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AYI (1.97) is better than 89.13% of its industry peers.
AYI has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
AYI has a Debt to Equity ratio (0.39) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 5.81 |
ROIC/WACC1.4
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.99 indicates that AYI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.99, AYI is in line with its industry, outperforming 52.17% of the companies in the same industry.
AYI has a Quick Ratio of 1.38. 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 (1.38) which is in line with its industry peers.
The current and quick ratio evaluation for AYI is rather negative, while it does have 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 | 1.99 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.48% over the past year.
The Earnings Per Share has been growing by 10.15% on average over the past years. This is quite good.
AYI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.16%.
The Revenue has been growing slightly by 0.90% on average over the past years.
EPS 1Y (TTM)12.48%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%23.37%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%21.74%
3.2 Future
The Earnings Per Share is expected to grow by 10.84% on average over the next years. This is quite good.
AYI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.11% yearly.
EPS Next Y13.28%
EPS Next 2Y11.7%
EPS Next 3Y10.77%
EPS Next 5Y10.84%
Revenue Next Year13.62%
Revenue Next 2Y11.39%
Revenue Next 3Y9.18%
Revenue Next 5Y8.11%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.12, the valuation of AYI can be described as rather expensive.
AYI's Price/Earnings ratio is rather cheap when compared to the industry. AYI is cheaper than 86.96% of the companies in the same industry.
AYI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.76 indicates a rather expensive valuation of AYI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AYI indicates a rather cheap valuation: AYI is cheaper than 86.96% of the companies listed in the same industry.
AYI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 17.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AYI is valued cheaper than 82.61% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AYI indicates a rather cheap valuation: AYI is cheaper than 85.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.85 | ||
| EV/EBITDA | 15.79 |
4.3 Compensation for Growth
The 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)1.52
PEG (5Y)1.98
EPS Next 2Y11.7%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
AYI has a yearly dividend return of 0.20%, which is pretty low.
Compared to an average industry Dividend Yield of 3.03, AYI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.20, AYI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
5.2 History
The dividend of AYI has a limited annual growth rate of 2.39%.
AYI has paid a dividend for at least 10 years, which is 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 5.01% 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.
DP5.01%
EPS Next 2Y11.7%
EPS Next 3Y10.77%
344.52
+4.82 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.83%
Inst Owner Change3.39%
Ins Owners0.22%
Ins Owner Change-1.57%
Market Cap10.56B
Analysts75.71
Price Target353.19 (2.52%)
Short Float %1.96%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Yearly Dividend0.59
Dividend Growth(5Y)2.39%
DP5.01%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.17%
Min EPS beat(2)-0.15%
Max EPS beat(2)14.48%
EPS beat(4)2
Avg EPS beat(4)3.71%
Min EPS beat(4)-0.5%
Max EPS beat(4)14.48%
EPS beat(8)6
Avg EPS beat(8)4.85%
EPS beat(12)9
Avg EPS beat(12)5.63%
EPS beat(16)13
Avg EPS beat(16)7.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)1.6%
Revenue beat(4)1
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)1.6%
Revenue beat(8)1
Avg Revenue beat(8)-1.38%
Revenue beat(12)3
Avg Revenue beat(12)-1.41%
Revenue beat(16)7
Avg Revenue beat(16)-0.16%
PT rev (1m)2.21%
PT rev (3m)11.24%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)0%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 17.76 | ||
| P/S | 2.53 | ||
| P/FCF | 20.85 | ||
| P/OCF | 18.42 | ||
| P/B | 4.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.79 |
EPS(TTM)17.12
EY4.97%
EPS(NY)19.4
Fwd EY5.63%
FCF(TTM)16.53
FCFY4.8%
OCF(TTM)18.7
OCFY5.43%
SpS136.06
BVpS84.33
TBVpS-0.55
PEG (NY)1.52
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.64% | ||
| ROE | 15.54% | ||
| ROCE | 15.33% | ||
| ROIC | 11.84% | ||
| ROICexc | 13.11% | ||
| ROICexgc | 52.1% | ||
| OM | 14.14% | ||
| PM (TTM) | 9.63% | ||
| GM | 47.4% | ||
| FCFM | 12.15% |
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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 60.93% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 17.76 | ||
| Cash Conversion | 81.99% | ||
| Profit Quality | 126.13% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 5.81 |
F-Score5
WACC8.48%
ROIC/WACC1.4
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)12.48%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%23.37%
EPS Next Y13.28%
EPS Next 2Y11.7%
EPS Next 3Y10.77%
EPS Next 5Y10.84%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%21.74%
Revenue Next Year13.62%
Revenue Next 2Y11.39%
Revenue Next 3Y9.18%
Revenue Next 5Y8.11%
EBIT growth 1Y12.09%
EBIT growth 3Y8.89%
EBIT growth 5Y3.61%
EBIT Next Year24.71%
EBIT Next 3Y14.04%
EBIT Next 5Y11.5%
FCF growth 1Y-8.86%
FCF growth 3Y15.02%
FCF growth 5Y4.68%
OCF growth 1Y-7.89%
OCF growth 3Y14.85%
OCF growth 5Y4.59%