ACUITY BRANDS INC (AYI) Stock Fundamental Analysis
NYSE:AYI - New York Stock Exchange, Inc. - US00508Y1029 - Common Stock - Currency: USD
Taking everything into account, AYI scores 8 out of 10 in our fundamental rating. AYI was compared to 93 industry peers in the Electrical Equipment industry. AYI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AYI is not valued too expensively and it also shows a decent growth rate. This makes AYI very considerable 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 better Return On Assets (11.09%) than 95.60% of its industry peers.
AYI's Return On Equity of 17.40% is amongst the best of the industry. AYI outperforms 90.11% of its industry peers.
AYI's Return On Invested Capital of 13.38% is amongst the best of the industry. AYI outperforms 93.41% of its industry peers.
AYI had an Average Return On Invested Capital over the past 3 years of 13.97%. This is above the industry average of 10.24%.
| 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
The Profit Margin of AYI (11.11%) is better than 86.81% of its industry peers.
AYI's Profit Margin has improved in the last couple of years.
AYI's Operating Margin of 14.43% is amongst the best of the industry. AYI outperforms 86.81% of its industry peers.
AYI's Operating Margin has improved in the last couple of years.
AYI has a Gross Margin of 46.72%. This is amongst the best in the industry. AYI outperforms 96.70% of its industry peers.
In the last couple of years the Gross Margin of AYI has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AYI is 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
An Altman-Z score of 7.69 indicates that AYI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.69, AYI belongs to the top of the industry, outperforming 94.51% of the companies in the same industry.
The Debt to FCF ratio of AYI is 1.01, which is an excellent value as it means it would take AYI, only 1.01 years of fcf income to pay off 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 89.01% 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 has a Debt to Equity ratio (0.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 7.69 |
ROIC/WACC1.3
WACC10.3%
2.3 Liquidity
A Current Ratio of 2.98 indicates that AYI has no problem at all paying its short term obligations.
AYI has a Current ratio of 2.98. This is in the better half of the industry: AYI outperforms 76.92% of its industry peers.
AYI has a Quick Ratio of 2.38. This indicates that AYI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of AYI (2.38) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
AYI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.97%, 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 -0.80% in the past year.
The Revenue has been growing slightly by 0.90% on average over the past years.
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 9.83% yearly.
AYI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.79% yearly.
EPS Next Y9.29%
EPS Next 2Y9.58%
EPS Next 3Y9.83%
EPS Next 5YN/A
Revenue Next Year12.49%
Revenue Next 2Y10.64%
Revenue Next 3Y9.79%
Revenue Next 5YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AYI is valuated rather expensively with a Price/Earnings ratio of 20.73.
Compared to the rest of the industry, the Price/Earnings ratio of AYI indicates a rather cheap valuation: AYI is cheaper than 82.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.42, AYI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.54, the valuation of AYI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, AYI is valued cheaper than 81.32% of the companies in the same industry.
AYI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 17.54 |
4.2 Price Multiples
80.22% of the companies in the same industry are more expensive than AYI, based on the Enterprise Value to EBITDA ratio.
82.42% 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 | 20.58 | ||
| EV/EBITDA | 15.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AYI may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)2.04
EPS Next 2Y9.58%
EPS Next 3Y9.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.18%, AYI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.40, AYI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.18, AYI pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
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
AYI pays out 4.34% 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.
DP4.34%
EPS Next 2Y9.58%
EPS Next 3Y9.83%
ACUITY BRANDS INC
NYSE:AYI (1/28/2025, 8:04:00 PM)
After market: 327.53 0 (0%)327.53
-1.27 (-0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.42%
Inst Owner Change-0.89%
Ins Owners0.16%
Ins Owner Change6.32%
Market Cap10.15B
Analysts68.57
Price Target325.64 (-0.58%)
Short Float %2.21%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend0.59
Dividend Growth(5Y)2.39%
DP4.34%
Div Incr Years1
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.5%
Min EPS beat(2)-0.5%
Max EPS beat(2)1.49%
EPS beat(4)3
Avg EPS beat(4)1.32%
Min EPS beat(4)-0.5%
Max EPS beat(4)3.36%
EPS beat(8)6
Avg EPS beat(8)4.53%
EPS beat(12)10
Avg EPS beat(12)6.56%
EPS beat(16)14
Avg EPS beat(16)9.5%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-2.22%
Revenue beat(12)4
Avg Revenue beat(12)-0.6%
Revenue beat(16)7
Avg Revenue beat(16)0.24%
PT rev (1m)0%
PT rev (3m)2.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.21%
EPS NY rev (1m)0%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)5.36%
Revenue NY rev (3m)8.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 17.54 | ||
| P/S | 2.63 | ||
| P/FCF | 20.58 | ||
| P/OCF | 18.07 | ||
| P/B | 4.12 | ||
| P/tB | 10.9 | ||
| EV/EBITDA | 15.07 |
EPS(TTM)15.8
EY4.82%
EPS(NY)18.67
Fwd EY5.7%
FCF(TTM)15.92
FCFY4.86%
OCF(TTM)18.12
OCFY5.53%
SpS124.53
BVpS79.52
TBVpS30.06
PEG (NY)2.23
PEG (5Y)2.04
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 | 7.69 |
F-Score8
WACC10.3%
ROIC/WACC1.3
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 Y9.29%
EPS Next 2Y9.58%
EPS Next 3Y9.83%
EPS Next 5YN/A
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 5YN/A
EBIT growth 1Y7.6%
EBIT growth 3Y8.89%
EBIT growth 5Y3.61%
EBIT Next Year27.45%
EBIT Next 3Y15.9%
EBIT Next 5YN/A
FCF growth 1Y39.37%
FCF growth 3Y15.02%
FCF growth 5Y4.68%
OCF growth 1Y33.92%
OCF growth 3Y14.85%
OCF growth 5Y4.59%