ACUITY INC (AYI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AYI - US00508Y1029 - Common Stock
366.42 USD
+0.45 (+0.12%)
366.42 USD
0 (0%)
AYI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 90 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 could make AYI a good candidate 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.
In the past 5 years AYI has always been profitable.
AYI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AYI's Return On Assets of 8.34% is amongst the best of the industry. AYI outperforms 86.67% of its industry peers.
AYI has a Return On Equity of 14.55%. This is amongst the best in the industry. AYI outperforms 86.67% of its industry peers.
AYI's Return On Invested Capital of 12.25% is amongst the best of the industry. AYI outperforms 86.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AYI is above the industry average of 10.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 14.55% | ||
| ROIC | 12.25% |
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 9.13%. This is amongst the best in the industry. AYI outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of AYI has grown nicely.
The Operating Margin of AYI (14.10%) is better than 86.67% of its industry peers.
AYI's Operating Margin has improved in the last couple of years.
AYI's Gross Margin of 47.83% is amongst the best of the industry. AYI outperforms 93.33% 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) | 9.13% | ||
| GM | 47.83% |
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.
AYI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AYI has been reduced compared to 5 years ago.
Compared to 1 year ago, AYI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.12 indicates that AYI is not in any danger for bankruptcy at the moment.
AYI has a better Altman-Z score (6.12) than 85.56% of its industry peers.
AYI has a debt to FCF ratio of 1.68. This is a very positive value and a sign of high solvency as it would only need 1.68 years to pay back of all of its debts.
AYI has a Debt to FCF ratio of 1.68. This is amongst the best in the industry. AYI outperforms 90.00% of its industry peers.
AYI has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.33, AYI is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 6.12 |
ROIC/WACC1.46
WACC8.4%
2.3 Liquidity
A Current Ratio of 1.95 indicates that AYI should not have too much problems paying its short term obligations.
AYI has a Current ratio (1.95) which is comparable to the rest of the industry.
A Quick Ratio of 1.33 indicates that AYI should not have too much problems paying its short term obligations.
The Quick ratio of AYI (1.33) is comparable to the rest of the industry.
AYI does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.95 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.88% over the past year.
Measured over the past years, AYI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.88% on average per year.
AYI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.14%.
The Revenue has been growing slightly by 5.49% on average over the past years.
EPS 1Y (TTM)15.88%
EPS 3Y11.82%
EPS 5Y16.88%
EPS Q2Q%20.93%
Revenue 1Y (TTM)13.14%
Revenue growth 3Y2.75%
Revenue growth 5Y5.49%
Sales Q2Q%17.13%
3.2 Future
The Earnings Per Share is expected to grow by 9.11% 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 6.30% on average per year.
EPS Next Y11.54%
EPS Next 2Y10.61%
EPS Next 3Y10.3%
EPS Next 5Y9.11%
Revenue Next Year9.35%
Revenue Next 2Y7.23%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AYI is valuated rather expensively with a Price/Earnings ratio of 20.33.
Compared to the rest of the industry, the Price/Earnings ratio of AYI indicates a rather cheap valuation: AYI is cheaper than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, AYI is valued a bit cheaper.
AYI is valuated rather expensively with a Price/Forward Earnings ratio of 18.23.
Based on the Price/Forward Earnings ratio, AYI is valued cheaper than 81.11% of the companies in the same industry.
AYI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 18.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AYI is valued a bit cheaper than 80.00% of the companies in the same industry.
86.67% 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 | 21.06 | ||
| EV/EBITDA | 15.67 |
4.3 Compensation for Growth
AYI's 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)1.76
PEG (5Y)1.2
EPS Next 2Y10.61%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, AYI is not a good candidate for dividend investing.
AYI's Dividend Yield is a higher than the industry average which is at 3.48.
Compared to an average S&P500 Dividend Yield of 2.40, 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 4.77%.
AYI has paid a dividend for at least 10 years, which is a reliable track record.
AYI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.77%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
AYI pays out 5.19% 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.
DP5.19%
EPS Next 2Y10.61%
EPS Next 3Y10.3%
366.42
+0.45 (+0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97%
Inst Owner Change-7.11%
Ins Owners0.22%
Ins Owner Change5.58%
Market Cap11.23B
Revenue(TTM)4.35B
Net Income(TTM)396.60M
Analysts77.14
Price Target407.56 (11.23%)
Short Float %1.91%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Yearly Dividend0.67
Dividend Growth(5Y)4.77%
DP5.19%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.44%
Min EPS beat(2)6.41%
Max EPS beat(2)14.48%
EPS beat(4)3
Avg EPS beat(4)5.44%
Min EPS beat(4)-0.15%
Max EPS beat(4)14.48%
EPS beat(8)6
Avg EPS beat(8)4.95%
EPS beat(12)9
Avg EPS beat(12)5.41%
EPS beat(16)13
Avg EPS beat(16)7.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)1.6%
Revenue beat(4)1
Avg Revenue beat(4)-1.45%
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)2
Avg Revenue beat(12)-1.8%
Revenue beat(16)6
Avg Revenue beat(16)-0.46%
PT rev (1m)14.36%
PT rev (3m)17.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.98%
EPS NY rev (1m)0%
EPS NY rev (3m)3.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 18.23 | ||
| P/S | 2.58 | ||
| P/FCF | 21.06 | ||
| P/OCF | 18.67 | ||
| P/B | 4.12 | ||
| P/tB | 86.1 | ||
| EV/EBITDA | 15.67 |
EPS(TTM)18.02
EY4.92%
EPS(NY)20.1
Fwd EY5.49%
FCF(TTM)17.4
FCFY4.75%
OCF(TTM)19.63
OCFY5.36%
SpS141.83
BVpS88.93
TBVpS4.26
PEG (NY)1.76
PEG (5Y)1.2
Graham Number189.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 14.55% | ||
| ROCE | 15.68% | ||
| ROIC | 12.25% | ||
| ROICexc | 13.74% | ||
| ROICexgc | 53.67% | ||
| OM | 14.1% | ||
| PM (TTM) | 9.13% | ||
| GM | 47.83% | ||
| FCFM | 12.27% |
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 Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 51.39% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 15.13 | ||
| Cash Conversion | 80.63% | ||
| Profit Quality | 134.39% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 6.12 |
F-Score5
WACC8.4%
ROIC/WACC1.46
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)15.88%
EPS 3Y11.82%
EPS 5Y16.88%
EPS Q2Q%20.93%
EPS Next Y11.54%
EPS Next 2Y10.61%
EPS Next 3Y10.3%
EPS Next 5Y9.11%
Revenue 1Y (TTM)13.14%
Revenue growth 3Y2.75%
Revenue growth 5Y5.49%
Sales Q2Q%17.13%
Revenue Next Year9.35%
Revenue Next 2Y7.23%
Revenue Next 3Y6.24%
Revenue Next 5Y6.3%
EBIT growth 1Y10.16%
EBIT growth 3Y6.64%
EBIT growth 5Y10.39%
EBIT Next Year24.83%
EBIT Next 3Y13.03%
EBIT Next 5Y10.9%
FCF growth 1Y-4%
FCF growth 3Y27.07%
FCF growth 5Y3.45%
OCF growth 1Y-2.87%
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.
What is the valuation status for AYI stock?
ChartMill assigns a valuation rating of 6 / 10 to ACUITY INC (AYI). This can be considered as Fairly Valued.
What is the profitability of AYI stock?
ACUITY INC (AYI) has a profitability rating of 9 / 10.
What are the PE and PB ratios of ACUITY INC (AYI) stock?
The Price/Earnings (PE) ratio for ACUITY INC (AYI) is 20.33 and the Price/Book (PB) ratio is 4.12.
What is the earnings growth outlook for ACUITY INC?
The Earnings per Share (EPS) of ACUITY INC (AYI) is expected to grow by 11.54% in the next year.