ACUITY INC (AYI) Stock Fundamental Analysis
NYSE:AYI - New York Stock Exchange, Inc. - US00508Y1029 - Common Stock - Currency: USD
Overall AYI gets a fundamental rating of 7 out of 10. We evaluated AYI against 94 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 correct valuation and a medium growth rate. These ratings would make AYI suitable 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.
Each year in the past 5 years AYI had a positive operating cash flow.
1.2 Ratios
AYI has a Return On Assets of 8.64%. This is amongst the best in the industry. AYI outperforms 89.36% of its industry peers.
AYI's Return On Equity of 15.54% is amongst the best of the industry. AYI outperforms 88.30% of its industry peers.
AYI has a better Return On Invested Capital (11.84%) than 90.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AYI is above the industry average of 9.89%.
| 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
With an excellent Profit Margin value of 9.63%, AYI belongs to the best of the industry, outperforming 86.17% of the companies in the same industry.
In the last couple of years the Profit Margin of AYI has grown nicely.
The Operating Margin of AYI (14.14%) is better than 87.23% 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 47.40%, AYI belongs to the best of the industry, outperforming 94.68% of the companies in the same industry.
AYI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.14% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AYI is still creating some value.
Compared to 1 year ago, AYI has less shares outstanding
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 5.51. This indicates that AYI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AYI (5.51) is better than 85.11% of its industry peers.
AYI has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
AYI has a Debt to FCF ratio of 1.97. This is amongst the best in the industry. AYI outperforms 88.30% 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.
With a Debt to Equity ratio value of 0.39, AYI perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 5.51 |
ROIC/WACC1.18
WACC10.02%
2.3 Liquidity
AYI has a Current Ratio of 1.99. This is a normal value and indicates that AYI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AYI (1.99) is comparable to the rest of the 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 comparable to the rest of the industry.
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%.
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)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
Based on estimates for the next years, AYI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.54% on average per year.
Based on estimates for the next years, AYI will show a quite strong growth in Revenue. The Revenue will grow by 8.12% on average per year.
EPS Next Y10.33%
EPS Next 2Y11.42%
EPS Next 3Y10.16%
EPS Next 5Y10.54%
Revenue Next Year13%
Revenue Next 2Y11.6%
Revenue Next 3Y9.36%
Revenue Next 5Y8.12%
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
AYI is valuated rather expensively with a Price/Earnings ratio of 17.43.
Compared to the rest of the industry, the Price/Earnings ratio of AYI indicates a rather cheap valuation: AYI is cheaper than 85.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, AYI is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.45, which indicates a correct valuation of AYI.
81.91% of the companies in the same industry are more expensive than AYI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AYI to the average of the S&P500 Index (21.60), we can say AYI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 15.45 |
4.2 Price Multiples
80.85% of the companies in the same industry are more expensive than AYI, based on the Enterprise Value to EBITDA ratio.
AYI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AYI is cheaper than 84.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.2 | ||
| EV/EBITDA | 14.31 |
4.3 Compensation for Growth
AYI's 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)1.69
PEG (5Y)1.72
EPS Next 2Y11.42%
EPS Next 3Y10.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.22%, AYI is not a good candidate for dividend investing.
AYI's Dividend Yield is a higher than the industry average which is at 4.40.
Compared to an average S&P500 Dividend Yield of 2.42, AYI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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.
AYI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP5.01%
EPS Next 2Y11.42%
EPS Next 3Y10.16%
298.34
-5 (-1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.4%
Inst Owner Change-0.58%
Ins Owners0.23%
Ins Owner Change0.11%
Market Cap9.22B
Analysts75.38
Price Target321.88 (7.89%)
Short Float %2.32%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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)9.02%
Min EPS beat(2)-0.15%
Max EPS beat(2)18.18%
EPS beat(4)2
Avg EPS beat(4)4.64%
Min EPS beat(4)-0.5%
Max EPS beat(4)18.18%
EPS beat(8)6
Avg EPS beat(8)5.31%
EPS beat(12)9
Avg EPS beat(12)5.93%
EPS beat(16)13
Avg EPS beat(16)7.94%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)1.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)1.34%
Revenue beat(8)1
Avg Revenue beat(8)-1.42%
Revenue beat(12)3
Avg Revenue beat(12)-1.43%
Revenue beat(16)7
Avg Revenue beat(16)-0.17%
PT rev (1m)1.38%
PT rev (3m)-5.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.91%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 15.45 | ||
| P/S | 2.21 | ||
| P/FCF | 18.2 | ||
| P/OCF | 16.09 | ||
| P/B | 3.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.31 |
EPS(TTM)17.12
EY5.74%
EPS(NY)19.31
Fwd EY6.47%
FCF(TTM)16.39
FCFY5.49%
OCF(TTM)18.54
OCFY6.22%
SpS134.91
BVpS83.62
TBVpS-0.55
PEG (NY)1.69
PEG (5Y)1.72
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 | 5.51 |
F-Score5
WACC10.02%
ROIC/WACC1.18
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 Y10.33%
EPS Next 2Y11.42%
EPS Next 3Y10.16%
EPS Next 5Y10.54%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%21.74%
Revenue Next Year13%
Revenue Next 2Y11.6%
Revenue Next 3Y9.36%
Revenue Next 5Y8.12%
EBIT growth 1Y12.09%
EBIT growth 3Y8.89%
EBIT growth 5Y3.61%
EBIT Next Year24.61%
EBIT Next 3Y13.78%
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%