ACUITY INC (AYI) Stock Fundamental Analysis
USA - NYSE:AYI - US00508Y1029 - Common Stock
357.83 USD
-7.79 (-2.13%)
AYI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 92 industry peers in the Electrical Equipment industry. AYI scores excellent on profitability, but there are some minor concerns on its financial health. AYI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AYI was profitable.
AYI had a positive operating cash flow in the past year.
AYI had positive earnings in each of the past 5 years.
AYI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AYI (8.34%) is better than 84.78% of its industry peers.
AYI's Return On Equity of 14.55% is amongst the best of the industry. AYI outperforms 86.96% of its industry peers.
AYI's Return On Invested Capital of 12.20% is amongst the best of the industry. AYI outperforms 86.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AYI is above the industry average of 10.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 14.55% | ||
| ROIC | 12.2% |
ROA(3y)9.86%
ROA(5y)9.83%
ROE(3y)16.5%
ROE(5y)16.91%
ROIC(3y)13.26%
ROIC(5y)13.19%
1.3 Margins
AYI has a Profit Margin of 9.13%. This is amongst the best in the industry. AYI outperforms 82.61% of its industry peers.
AYI's Profit Margin has improved in the last couple of years.
The Operating Margin of AYI (14.04%) is better than 86.96% of its industry peers.
In the last couple of years the Operating Margin of AYI has grown nicely.
AYI has a Gross Margin of 47.83%. This is amongst the best in the industry. AYI outperforms 93.48% of its industry peers.
In the last couple of years the Gross Margin of AYI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.04% | ||
| PM (TTM) | 9.13% | ||
| GM | 47.83% |
OM growth 3Y2.44%
OM growth 5Y3.83%
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
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.
Looking at the Debt to FCF ratio, with a value of 1.68, AYI belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
AYI has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
AYI has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | N/A |
ROIC/WACC1.44
WACC8.47%
2.3 Liquidity
AYI has a Current Ratio of 1.95. 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 Current ratio of 1.95. This is comparable to the rest of the industry: AYI outperforms 55.43% of its industry peers.
A Quick Ratio of 1.33 indicates that AYI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.33, AYI perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
AYI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.88%, which is quite good.
The Earnings Per Share has been growing by 16.88% on average over the past years. This is quite good.
The Revenue has grown by 13.14% in the past year. This is quite good.
Measured over the past years, AYI shows a small growth in Revenue. The Revenue has been growing by 5.49% on average per year.
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
Based on estimates for the next years, AYI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.11% on average per year.
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 Year9.32%
Revenue Next 2Y7.21%
Revenue Next 3Y6.24%
Revenue Next 5Y6.3%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 19.86, AYI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of AYI indicates a rather cheap valuation: AYI is cheaper than 86.96% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AYI to the average of the S&P500 Index (26.51), we can say AYI is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.80 indicates a rather expensive valuation of AYI.
Based on the Price/Forward Earnings ratio, AYI is valued cheaper than 85.87% of the companies in the same industry.
AYI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 17.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AYI is valued cheaper than 84.78% of the companies in the same industry.
86.96% 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 | 20.57 | ||
| EV/EBITDA | 15.71 |
4.3 Compensation for Growth
The 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)1.72
PEG (5Y)1.18
EPS Next 2Y10.61%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
AYI has a yearly dividend return of 0.19%, which is pretty low.
Compared to an average industry Dividend Yield of 3.00, AYI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.19, AYI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
The dividend of AYI has a limited annual growth rate of 4.79%.
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)4.79%
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%
NYSE:AYI (11/4/2025, 1:29:53 PM)
357.83
-7.79 (-2.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97%
Inst Owner Change-0.29%
Ins Owners0.22%
Ins Owner Change5.58%
Market Cap10.96B
Revenue(TTM)4.35B
Net Income(TTM)396.60M
Analysts77.14
Price Target407.56 (13.9%)
Short Float %2.03%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.67
Dividend Growth(5Y)4.79%
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)2.68%
EPS NQ rev (3m)2.98%
EPS NY rev (1m)2.98%
EPS NY rev (3m)3.59%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 17.8 | ||
| P/S | 2.52 | ||
| P/FCF | 20.57 | ||
| P/OCF | 18.23 | ||
| P/B | 4.02 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 15.71 |
EPS(TTM)18.02
EY5.04%
EPS(NY)20.1
Fwd EY5.62%
FCF(TTM)17.4
FCFY4.86%
OCF(TTM)19.63
OCFY5.49%
SpS141.83
BVpS88.93
TBVpS88.93
PEG (NY)1.72
PEG (5Y)1.18
Graham Number189.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 14.55% | ||
| ROCE | 15.61% | ||
| ROIC | 12.2% | ||
| ROICexc | 13.68% | ||
| ROICexgc | 13.68% | ||
| OM | 14.04% | ||
| 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)13.26%
ROIC(5y)13.19%
ROICexc(3y)16.23%
ROICexc(5y)15.71%
ROICexgc(3y)39.7%
ROICexgc(5y)41.87%
ROCE(3y)16.97%
ROCE(5y)16.88%
ROICexgc growth 3Y-32.74%
ROICexgc growth 5Y-22.28%
ROICexc growth 3Y-5.5%
ROICexc growth 5Y0.9%
OM growth 3Y2.44%
OM growth 5Y3.83%
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 | 1.21 | ||
| Cap/Depr | 51.39% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.91% | ||
| Profit Quality | 134.39% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | N/A |
F-Score5
WACC8.47%
ROIC/WACC1.44
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 Year9.32%
Revenue Next 2Y7.21%
Revenue Next 3Y6.24%
Revenue Next 5Y6.3%
EBIT growth 1Y9.69%
EBIT growth 3Y5.25%
EBIT growth 5Y9.53%
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 6 / 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 19.86 and the Price/Book (PB) ratio is 4.02.
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.