ACUITY BRANDS INC (AYI) Stock Fundamental Analysis
NYSE:AYI - New York Stock Exchange, Inc. - US00508Y1029 - Common Stock - Currency: USD
AYI gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 93 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 decent growth rate and is not valued too expensively. This makes AYI very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year AYI was profitable.
AYI had a positive operating cash flow in the past year.
Each year in the past 5 years AYI has been profitable.
Each year in the past 5 years AYI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.09%, AYI belongs to the top of the industry, outperforming 94.62% of the companies in the same industry.
AYI's Return On Equity of 17.40% is amongst the best of the industry. AYI outperforms 90.32% of its industry peers.
With an excellent Return On Invested Capital value of 13.38%, AYI belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AYI is above the industry average of 9.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.09% | ||
| ROE | 17.4% | ||
| ROIC | 13.38% |
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 (11.11%) than 88.17% of its industry peers.
AYI's Profit Margin has improved in the last couple of years.
AYI has a better Operating Margin (14.43%) than 86.02% 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 46.72%, AYI belongs to the top of the industry, outperforming 95.70% of the companies in the same industry.
AYI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.43% | ||
| PM (TTM) | 11.11% | ||
| GM | 46.72% |
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.
AYI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AYI has less shares outstanding
Compared to 1 year ago, AYI has an improved debt to assets ratio.
2.2 Solvency
AYI has an Altman-Z score of 7.07. This indicates that AYI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AYI (7.07) is better than 94.62% of its industry peers.
AYI has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.01, AYI belongs to the top of the industry, outperforming 89.25% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that AYI is not too dependend on debt financing.
AYI's Debt to Equity ratio of 0.20 is in line compared to the rest of the industry. AYI outperforms 54.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 7.07 |
ROIC/WACC1.54
WACC8.68%
2.3 Liquidity
AYI has a Current Ratio of 2.98. This indicates that AYI is financially healthy and has no problem in meeting its short term obligations.
AYI has a better Current ratio (2.98) than 76.34% of its industry peers.
A Quick Ratio of 2.38 indicates that AYI has no problem at all paying its short term obligations.
AYI has a better Quick ratio (2.38) than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.97% over the past year.
AYI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.15% yearly.
AYI shows a decrease in Revenue. In the last year, the revenue decreased by -0.80%.
Measured over the past years, AYI shows a small growth in Revenue. The Revenue has been growing by 0.90% on average per year.
EPS 1Y (TTM)8.97%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%6.72%
Revenue 1Y (TTM)-0.8%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%1.81%
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 11.67% yearly.
Based on estimates for the next years, AYI will show a quite strong growth in Revenue. The Revenue will grow by 8.76% on average per year.
EPS Next Y13.07%
EPS Next 2Y12.66%
EPS Next 3Y11.67%
EPS Next 5Y11.67%
Revenue Next Year12.49%
Revenue Next 2Y10.64%
Revenue Next 3Y9.79%
Revenue Next 5Y8.76%
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
A Price/Earnings ratio of 17.86 indicates a rather expensive valuation of AYI.
82.80% of the companies in the same industry are more expensive than AYI, based on the Price/Earnings ratio.
AYI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 14.30, which indicates a correct valuation of AYI.
AYI's Price/Forward Earnings ratio is rather cheap when compared to the industry. AYI is cheaper than 81.72% of the companies in the same industry.
AYI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.86 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
79.57% 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 82.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.72 | ||
| EV/EBITDA | 12.83 |
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)1.37
PEG (5Y)1.76
EPS Next 2Y12.66%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.24%, AYI is not a good candidate for dividend investing.
AYI's Dividend Yield is a higher than the industry average which is at 3.77.
Compared to an average S&P500 Dividend Yield of 2.33, AYI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.39%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
4.34% of the earnings are spent on dividend by AYI. This is a low number and sustainable payout ratio.
AYI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.34%
EPS Next 2Y12.66%
EPS Next 3Y11.67%
282.2
+1.84 (+0.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.41%
Inst Owner Change2.07%
Ins Owners0.23%
Ins Owner Change6.32%
Market Cap8.74B
Analysts75.38
Price Target341.41 (20.98%)
Short Float %2.45%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.59
Dividend Growth(5Y)2.39%
DP4.34%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.26%
Min EPS beat(2)-0.5%
Max EPS beat(2)1.01%
EPS beat(4)3
Avg EPS beat(4)1.2%
Min EPS beat(4)-0.5%
Max EPS beat(4)3.36%
EPS beat(8)6
Avg EPS beat(8)4.47%
EPS beat(12)10
Avg EPS beat(12)6.52%
EPS beat(16)14
Avg EPS beat(16)9.47%
Revenue beat(2)0
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)4
Avg Revenue beat(12)-0.59%
Revenue beat(16)7
Avg Revenue beat(16)0.25%
PT rev (1m)0%
PT rev (3m)4.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)0%
EPS NY rev (3m)3.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.86 | ||
| Fwd PE | 14.3 | ||
| P/S | 2.26 | ||
| P/FCF | 17.72 | ||
| P/OCF | 15.56 | ||
| P/B | 3.55 | ||
| P/tB | 9.38 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)15.8
EY5.6%
EPS(NY)19.74
Fwd EY6.99%
FCF(TTM)15.93
FCFY5.64%
OCF(TTM)18.13
OCFY6.43%
SpS124.61
BVpS79.57
TBVpS30.08
PEG (NY)1.37
PEG (5Y)1.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.09% | ||
| ROE | 17.4% | ||
| ROCE | 17.32% | ||
| ROIC | 13.38% | ||
| ROICexc | 18.88% | ||
| ROICexgc | 57.64% | ||
| OM | 14.43% | ||
| PM (TTM) | 11.11% | ||
| GM | 46.72% | ||
| FCFM | 12.78% |
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-Score8
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 75.89% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 24 | ||
| Cash Conversion | 86.81% | ||
| Profit Quality | 115.02% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 7.07 |
F-Score8
WACC8.68%
ROIC/WACC1.54
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%6.72%
EPS Next Y13.07%
EPS Next 2Y12.66%
EPS Next 3Y11.67%
EPS Next 5Y11.67%
Revenue 1Y (TTM)-0.8%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%1.81%
Revenue Next Year12.49%
Revenue Next 2Y10.64%
Revenue Next 3Y9.79%
Revenue Next 5Y8.76%
EBIT growth 1Y7.6%
EBIT growth 3Y8.89%
EBIT growth 5Y3.61%
EBIT Next Year28.22%
EBIT Next 3Y16.36%
EBIT Next 5Y12.33%
FCF growth 1Y39.37%
FCF growth 3Y15.02%
FCF growth 5Y4.68%
OCF growth 1Y33.92%
OCF growth 3Y14.85%
OCF growth 5Y4.59%