ACUITY INC (AYI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AYI - US00508Y1029 - Common Stock
325.55 USD
+3.29 (+1.02%)
325.55 USD
0 (0%)
Overall AYI gets a fundamental rating of 7 out of 10. We evaluated AYI against 91 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making AYI a very profitable company, without any liquidiy or solvency issues. 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
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.
In the past 5 years AYI always reported a positive cash flow from operatings.
1.2 Ratios
AYI's Return On Assets of 8.82% is amongst the best of the industry. AYI outperforms 86.81% of its industry peers.
AYI has a Return On Equity of 14.69%. This is amongst the best in the industry. AYI outperforms 86.81% of its industry peers.
AYI has a Return On Invested Capital of 12.86%. This is amongst the best in the industry. AYI outperforms 90.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AYI is above the industry average of 9.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 14.69% | ||
| ROIC | 12.86% |
ROA(3y)9.86%
ROA(5y)9.83%
ROE(3y)16.5%
ROE(5y)16.91%
ROIC(3y)13.42%
ROIC(5y)13.29%
1.3 Margins
AYI has a Profit Margin of 9.04%. This is amongst the best in the industry. AYI outperforms 82.42% of its industry peers.
AYI's Profit Margin has improved in the last couple of years.
AYI's Operating Margin of 14.10% is amongst the best of the industry. AYI outperforms 86.81% of its industry peers.
In the last couple of years the Operating Margin of AYI has grown nicely.
AYI has a better Gross Margin (48.11%) than 92.31% of its industry peers.
In the last couple of years the Gross Margin of AYI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.1% | ||
| PM (TTM) | 9.04% | ||
| GM | 48.11% |
OM growth 3Y3.79%
OM growth 5Y4.65%
PM growth 3Y-1.62%
PM growth 5Y4.1%
GM growth 3Y4.63%
GM growth 5Y2.56%
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
The number of shares outstanding for AYI has been reduced compared to 5 years ago.
AYI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.18 indicates that AYI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.18, AYI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Debt to FCF ratio of AYI is 1.49, which is an excellent value as it means it would take AYI, only 1.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AYI (1.49) is better than 92.31% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that AYI is not too dependend on debt financing.
The Debt to Equity ratio of AYI (0.29) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 6.18 |
ROIC/WACC1.51
WACC8.54%
2.3 Liquidity
A Current Ratio of 2.07 indicates that AYI has no problem at all paying its short term obligations.
AYI has a better Current ratio (2.07) than 60.44% of its industry peers.
AYI has a Quick Ratio of 1.39. This is a normal value and indicates that AYI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.39, AYI is in the better half of the industry, outperforming 60.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
AYI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.61%, which is quite good.
The Earnings Per Share has been growing by 16.88% on average over the past years. This is quite good.
Looking at the last year, AYI shows a quite strong growth in Revenue. The Revenue has grown by 17.62% in the last year.
The Revenue has been growing slightly by 5.49% on average over the past years.
EPS 1Y (TTM)18.61%
EPS 3Y11.82%
EPS 5Y16.88%
EPS Q2Q%18.14%
Revenue 1Y (TTM)17.62%
Revenue growth 3Y2.75%
Revenue growth 5Y5.49%
Sales Q2Q%20.19%
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 9.11% yearly.
The Revenue is expected to grow by 6.30% on average over the next years.
EPS Next Y11.59%
EPS Next 2Y10.65%
EPS Next 3Y10.3%
EPS Next 5Y9.11%
Revenue Next Year9.39%
Revenue Next 2Y7.26%
Revenue Next 3Y6.24%
Revenue Next 5Y6.3%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
AYI is valuated rather expensively with a Price/Earnings ratio of 17.37.
Based on the Price/Earnings ratio, AYI is valued cheaply inside the industry as 87.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.19, AYI is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.76 indicates a correct valuation of AYI.
Based on the Price/Forward Earnings ratio, AYI is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
AYI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AYI is valued cheaper than 89.01% 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 89.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | 13.15 |
4.3 Compensation for Growth
The 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)1.5
PEG (5Y)1.03
EPS Next 2Y10.65%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
AYI has a yearly dividend return of 0.21%, which is pretty low.
AYI's Dividend Yield is rather good when compared to the industry average which is at 0.27. AYI pays more dividend than 81.32% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, AYI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
5.2 History
The dividend of AYI has a limited annual growth rate of 4.77%.
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)4.77%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
5.21% of the earnings are spent on dividend by AYI. This is a low number and sustainable payout ratio.
The dividend of AYI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP5.21%
EPS Next 2Y10.65%
EPS Next 3Y10.3%
325.55
+3.29 (+1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97.85%
Inst Owner Change-0.01%
Ins Owners0.32%
Ins Owner Change7.04%
Market Cap9.97B
Revenue(TTM)4.54B
Net Income(TTM)410.40M
Analysts78.46
Price Target407.56 (25.19%)
Short Float %2.17%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
Yearly Dividend0.67
Dividend Growth(5Y)4.77%
DP5.21%
Div Incr Years1
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.19%
Min EPS beat(2)1.98%
Max EPS beat(2)6.41%
EPS beat(4)3
Avg EPS beat(4)5.68%
Min EPS beat(4)-0.15%
Max EPS beat(4)14.48%
EPS beat(8)6
Avg EPS beat(8)3.44%
EPS beat(12)9
Avg EPS beat(12)4.88%
EPS beat(16)13
Avg EPS beat(16)6.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)-1.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)1.6%
Revenue beat(8)1
Avg Revenue beat(8)-1.51%
Revenue beat(12)1
Avg Revenue beat(12)-1.92%
Revenue beat(16)5
Avg Revenue beat(16)-0.78%
PT rev (1m)0%
PT rev (3m)14.36%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)1.46%
EPS NY rev (1m)0.04%
EPS NY rev (3m)3.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 14.76 | ||
| P/S | 2.2 | ||
| P/FCF | 18.64 | ||
| P/OCF | 16.34 | ||
| P/B | 3.57 | ||
| P/tB | 43.98 | ||
| EV/EBITDA | 13.15 |
EPS(TTM)18.74
EY5.76%
EPS(NY)22.06
Fwd EY6.78%
FCF(TTM)17.46
FCFY5.36%
OCF(TTM)19.93
OCFY6.12%
SpS148.24
BVpS91.28
TBVpS7.4
PEG (NY)1.5
PEG (5Y)1.03
Graham Number196.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 14.69% | ||
| ROCE | 16.45% | ||
| ROIC | 12.86% | ||
| ROICexc | 14.23% | ||
| ROICexgc | 52.86% | ||
| OM | 14.1% | ||
| PM (TTM) | 9.04% | ||
| GM | 48.11% | ||
| FCFM | 11.78% |
ROA(3y)9.86%
ROA(5y)9.83%
ROE(3y)16.5%
ROE(5y)16.91%
ROIC(3y)13.42%
ROIC(5y)13.29%
ROICexc(3y)16.41%
ROICexc(5y)15.82%
ROICexgc(3y)53.29%
ROICexgc(5y)50.03%
ROCE(3y)17.17%
ROCE(5y)17%
ROICexgc growth 3Y7.33%
ROICexgc growth 5Y2.88%
ROICexc growth 3Y-4.26%
ROICexc growth 5Y1.69%
OM growth 3Y3.79%
OM growth 5Y4.65%
PM growth 3Y-1.62%
PM growth 5Y4.1%
GM growth 3Y4.63%
GM growth 5Y2.56%
F-Score5
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.49 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 50.4% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 14.09 | ||
| Cash Conversion | 77.24% | ||
| Profit Quality | 130.24% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 6.18 |
F-Score5
WACC8.54%
ROIC/WACC1.51
Cap/Depr(3y)64.4%
Cap/Depr(5y)59.31%
Cap/Sales(3y)1.64%
Cap/Sales(5y)1.52%
Profit Quality(3y)137.86%
Profit Quality(5y)120.07%
High Growth Momentum
Growth
EPS 1Y (TTM)18.61%
EPS 3Y11.82%
EPS 5Y16.88%
EPS Q2Q%18.14%
EPS Next Y11.59%
EPS Next 2Y10.65%
EPS Next 3Y10.3%
EPS Next 5Y9.11%
Revenue 1Y (TTM)17.62%
Revenue growth 3Y2.75%
Revenue growth 5Y5.49%
Sales Q2Q%20.19%
Revenue Next Year9.39%
Revenue Next 2Y7.26%
Revenue Next 3Y6.24%
Revenue Next 5Y6.3%
EBIT growth 1Y14.95%
EBIT growth 3Y6.64%
EBIT growth 5Y10.39%
EBIT Next Year29.93%
EBIT Next 3Y13.28%
EBIT Next 5Y10.85%
FCF growth 1Y3.11%
FCF growth 3Y27.07%
FCF growth 5Y3.45%
OCF growth 1Y4.9%
OCF growth 3Y23.89%
OCF growth 5Y3.56%
ACUITY INC / AYI FAQ
What is the fundamental rating for AYI stock?
ChartMill assigns a fundamental rating of 7 / 10 to AYI.
Can you provide the valuation status for ACUITY INC?
ChartMill assigns a valuation rating of 6 / 10 to ACUITY INC (AYI). This can be considered as Fairly Valued.
Can you provide the profitability details for ACUITY INC?
ACUITY INC (AYI) has a profitability rating of 9 / 10.
Can you provide the financial health for AYI stock?
The financial health rating of ACUITY INC (AYI) is 8 / 10.
What is the expected EPS growth for ACUITY INC (AYI) stock?
The Earnings per Share (EPS) of ACUITY INC (AYI) is expected to grow by 11.59% in the next year.