ACUITY INC (AYI) Stock Fundamental Analysis
NYSE:AYI - New York Stock Exchange, Inc. - US00508Y1029 - Common Stock - Currency: USD
Taking everything into account, AYI scores 7 out of 10 in our fundamental rating. AYI was compared to 95 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. 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.
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 has a better Return On Assets (9.10%) than 89.47% of its industry peers.
AYI has a better Return On Equity (16.54%) than 88.42% of its industry peers.
AYI has a Return On Invested Capital of 11.21%. This is amongst the best in the industry. AYI outperforms 85.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AYI is above the industry average of 10.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.1% | ||
| ROE | 16.54% | ||
| ROIC | 11.21% |
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
AYI has a better Profit Margin (10.53%) than 87.37% of its industry peers.
In the last couple of years the Profit Margin of AYI has grown nicely.
AYI has a better Operating Margin (13.86%) than 86.32% of its industry peers.
AYI's Operating Margin has improved in the last couple of years.
AYI has a better Gross Margin (46.94%) than 94.74% of its industry peers.
In the last couple of years the Gross Margin of AYI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.86% | ||
| PM (TTM) | 10.53% | ||
| GM | 46.94% |
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.
AYI has less shares outstanding than it did 1 year ago.
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 5.06 indicates that AYI is not in any danger for bankruptcy at the moment.
AYI's Altman-Z score of 5.06 is amongst the best of the industry. AYI outperforms 84.21% of its industry peers.
The Debt to FCF ratio of AYI is 2.41, which is a good value as it means it would take AYI, 2.41 years of fcf income to pay off all of its debts.
AYI has a Debt to FCF ratio of 2.41. This is amongst the best in the industry. AYI outperforms 81.05% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that AYI is not too dependend on debt financing.
AYI has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.06 |
ROIC/WACC1.28
WACC8.74%
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 53.68% of its industry peers.
AYI has a Quick Ratio of 1.36. 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 Quick ratio (1.36) which is in line with its industry peers.
The current and quick ratio evaluation for AYI is rather negative, while it does have 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 | 1.36 |
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.
AYI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.15% yearly.
AYI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
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)8.97%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%10.36%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%11.08%
3.2 Future
The Earnings Per Share is expected to grow by 10.83% on average over the next years. This is quite good.
Based on estimates for the next years, AYI will show a quite strong growth in Revenue. The Revenue will grow by 8.12% on average per year.
EPS Next Y10.09%
EPS Next 2Y11.41%
EPS Next 3Y10.15%
EPS Next 5Y10.83%
Revenue Next Year13.26%
Revenue Next 2Y11.76%
Revenue Next 3Y9.54%
Revenue Next 5Y8.12%
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.
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
With a Price/Earnings ratio of 16.09, AYI is valued correctly.
Based on the Price/Earnings ratio, AYI is valued cheaper than 83.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. AYI is valued slightly cheaper when compared to this.
AYI is valuated correctly with a Price/Forward Earnings ratio of 13.46.
Based on the Price/Forward Earnings ratio, AYI is valued cheaper than 84.21% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AYI to the average of the S&P500 Index (22.15), we can say AYI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 13.46 |
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.
AYI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AYI is cheaper than 81.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.67 | ||
| EV/EBITDA | 13.59 |
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)1.6
PEG (5Y)1.59
EPS Next 2Y11.41%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.26%, AYI is not a good candidate for dividend investing.
AYI's Dividend Yield is a higher than the industry average which is at 4.88.
Compared to an average S&P500 Dividend Yield of 2.38, AYI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
5.2 History
The dividend of AYI has a limited annual growth rate of 2.39%.
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)2.39%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
AYI pays out 4.65% 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.
DP4.65%
EPS Next 2Y11.41%
EPS Next 3Y10.15%
259.89
-1.85 (-0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.41%
Inst Owner Change-0.58%
Ins Owners0.23%
Ins Owner Change0.11%
Market Cap8.03B
Analysts75.38
Price Target317.51 (22.17%)
Short Float %2.19%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Yearly Dividend0.59
Dividend Growth(5Y)2.39%
DP4.65%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.43%
Min EPS beat(2)-0.15%
Max EPS beat(2)1.01%
EPS beat(4)2
Avg EPS beat(4)0.32%
Min EPS beat(4)-0.5%
Max EPS beat(4)1.01%
EPS beat(8)5
Avg EPS beat(8)3.03%
EPS beat(12)9
Avg EPS beat(12)5.91%
EPS beat(16)13
Avg EPS beat(16)8.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)-1.46%
Revenue beat(4)0
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-2.28%
Revenue beat(12)3
Avg Revenue beat(12)-1%
Revenue beat(16)7
Avg Revenue beat(16)0.12%
PT rev (1m)-4.28%
PT rev (3m)-7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 13.46 | ||
| P/S | 2.03 | ||
| P/FCF | 17.67 | ||
| P/OCF | 15.5 | ||
| P/B | 3.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.59 |
EPS(TTM)16.15
EY6.21%
EPS(NY)19.3
Fwd EY7.43%
FCF(TTM)14.71
FCFY5.66%
OCF(TTM)16.77
OCFY6.45%
SpS128.1
BVpS81.57
TBVpS-1.78
PEG (NY)1.6
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.1% | ||
| ROE | 16.54% | ||
| ROCE | 14.52% | ||
| ROIC | 11.21% | ||
| ROICexc | 12.53% | ||
| ROICexgc | 52.51% | ||
| OM | 13.86% | ||
| PM (TTM) | 10.53% | ||
| GM | 46.94% | ||
| FCFM | 11.48% |
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-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 65.16% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 20.79 | ||
| Cash Conversion | 80.17% | ||
| Profit Quality | 109.02% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 5.06 |
F-Score5
WACC8.74%
ROIC/WACC1.28
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%10.36%
EPS Next Y10.09%
EPS Next 2Y11.41%
EPS Next 3Y10.15%
EPS Next 5Y10.83%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%11.08%
Revenue Next Year13.26%
Revenue Next 2Y11.76%
Revenue Next 3Y9.54%
Revenue Next 5Y8.12%
EBIT growth 1Y4.73%
EBIT growth 3Y8.89%
EBIT growth 5Y3.61%
EBIT Next Year24.61%
EBIT Next 3Y13.78%
EBIT Next 5Y11.5%
FCF growth 1Y6.36%
FCF growth 3Y15.02%
FCF growth 5Y4.68%
OCF growth 1Y4.6%
OCF growth 3Y14.85%
OCF growth 5Y4.59%