ACUITY BRANDS INC (AYI)
US00508Y1029 - Common Stock
We assign a fundamental rating of 8 out of 10 to AYI. AYI was compared to 88 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. With these ratings, AYI could be worth investigating further 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.
In the past 5 years AYI has always been profitable.
In the past 5 years AYI always reported a positive cash flow from operatings.
1.2 Ratios
AYI has a better Return On Assets (11.08%) than 96.59% of its industry peers.
With an excellent Return On Equity value of 17.77%, AYI belongs to the best of the industry, outperforming 92.05% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.74%, AYI belongs to the best of the industry, outperforming 94.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AYI is above the industry average of 9.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 17.77% | ||
| ROIC | 13.74% |
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
The Profit Margin of AYI (11.00%) is better than 87.50% of its industry peers.
In the last couple of years the Profit Margin of AYI has grown nicely.
With an excellent Operating Margin value of 14.48%, AYI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
AYI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 46.39%, AYI belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
AYI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 11% | ||
| GM | 46.39% |
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
The debt/assets ratio for AYI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.22 indicates that AYI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.22, AYI belongs to the best of the industry, outperforming 94.32% of the companies in the same industry.
The Debt to FCF ratio of AYI is 0.89, which is an excellent value as it means it would take AYI, only 0.89 years of fcf income to pay off all of its debts.
AYI has a better Debt to FCF ratio (0.89) than 89.77% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that AYI is not too dependend on debt financing.
AYI has a Debt to Equity ratio (0.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | 7.22 |
ROIC/WACC1.35
WACC10.17%
2.3 Liquidity
AYI has a Current Ratio of 2.72. This indicates that AYI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AYI (2.72) is better than 71.59% of its industry peers.
A Quick Ratio of 2.16 indicates that AYI has no problem at all paying its short term obligations.
AYI has a Quick ratio of 2.16. This is in the better half of the industry: AYI outperforms 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
AYI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.52%, which is quite good.
Measured over the past years, AYI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.15% on average per year.
The Revenue has decreased by -2.81% in the past year.
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)10.52%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%8.31%
Revenue 1Y (TTM)-2.81%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%2.17%
3.2 Future
The Earnings Per Share is expected to grow by 9.83% on average over the next years. This is quite good.
Based on estimates for the next years, AYI will show a small growth in Revenue. The Revenue will grow by 6.89% on average per year.
EPS Next Y9.29%
EPS Next 2Y9.58%
EPS Next 3Y9.83%
EPS Next 5YN/A
Revenue Next Year6.76%
Revenue Next 2Y6.36%
Revenue Next 3Y6.89%
Revenue Next 5YN/A
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 19.41 indicates a rather expensive valuation of AYI.
AYI's Price/Earnings ratio is rather cheap when compared to the industry. AYI is cheaper than 80.68% of the companies in the same industry.
When comparing the Price/Earnings ratio of AYI to the average of the S&P500 Index (27.54), we can say AYI is valued slightly cheaper.
AYI is valuated rather expensively with a Price/Forward Earnings ratio of 17.76.
81.82% of the companies in the same industry are more expensive than AYI, based on the Price/Forward Earnings ratio.
AYI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 17.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AYI is valued cheaply inside the industry as 80.68% of the companies are valued more expensively.
84.09% 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 | 16.84 | ||
| EV/EBITDA | 13.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AYI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AYI may justify a higher PE ratio.
PEG (NY)2.09
PEG (5Y)1.91
EPS Next 2Y9.58%
EPS Next 3Y9.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, AYI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.42, AYI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, AYI's dividend is way lower than the S&P500 average.
| 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 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 4.31% 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.
DP4.31%
EPS Next 2Y9.58%
EPS Next 3Y9.83%
ACUITY BRANDS INC
NYSE:AYI (12/26/2024, 1:13:05 PM)
301.833
-1.33 (-0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.42%
Inst Owner Change-0.68%
Ins Owners0.16%
Ins Owner Change6.22%
Market Cap9.35B
Analysts68.57
Price Target325.64 (7.89%)
Short Float %2.14%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Dividend Growth(5Y)2.39%
DP4.31%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-0.5%
Max EPS beat(2)0.92%
EPS beat(4)3
Avg EPS beat(4)4.47%
Min EPS beat(4)-0.5%
Max EPS beat(4)14.08%
EPS beat(8)6
Avg EPS beat(8)5.4%
EPS beat(12)10
Avg EPS beat(12)7.88%
EPS beat(16)14
Avg EPS beat(16)9.96%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.26%
Revenue beat(8)1
Avg Revenue beat(8)-1.97%
Revenue beat(12)5
Avg Revenue beat(12)-0.12%
Revenue beat(16)7
Avg Revenue beat(16)0.31%
PT rev (1m)2.29%
PT rev (3m)12.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.11%
EPS NY rev (1m)0.37%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 17.76 | ||
| P/S | 2.43 | ||
| P/FCF | 16.84 | ||
| P/OCF | 15.1 | ||
| P/B | 3.93 | ||
| P/tB | 11.14 | ||
| EV/EBITDA | 13.97 |
EPS(TTM)15.55
EY5.15%
EPS(NY)16.99
Fwd EY5.63%
FCF(TTM)17.92
FCFY5.94%
OCF(TTM)19.99
OCFY6.62%
SpS123.98
BVpS76.79
TBVpS27.1
PEG (NY)2.09
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 17.77% | ||
| ROCE | 17.79% | ||
| ROIC | 13.74% | ||
| ROICexc | 18.84% | ||
| ROICexgc | 57.94% | ||
| OM | 14.48% | ||
| PM (TTM) | 11% | ||
| GM | 46.39% | ||
| FCFM | 14.45% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.89 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 70.25% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 22.8 | ||
| Cash Conversion | 95.64% | ||
| Profit Quality | 131.38% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 7.22 |
F-Score8
WACC10.17%
ROIC/WACC1.35
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)10.52%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%8.31%
EPS Next Y9.29%
EPS Next 2Y9.58%
EPS Next 3Y9.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.81%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%2.17%
Revenue Next Year6.76%
Revenue Next 2Y6.36%
Revenue Next 3Y6.89%
Revenue Next 5YN/A
EBIT growth 1Y11.19%
EBIT growth 3Y8.89%
EBIT growth 5Y3.61%
EBIT Next Year18.63%
EBIT Next 3Y7.54%
EBIT Next 5YN/A
FCF growth 1Y8.56%
FCF growth 3Y15.02%
FCF growth 5Y4.68%
OCF growth 1Y7.11%
OCF growth 3Y14.85%
OCF growth 5Y4.59%