ACUITY INC (AYI) Stock Fundamental Analysis
NYSE:AYI - New York Stock Exchange, Inc. - US00508Y1029 - Common Stock - Currency: USD
AYI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 94 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 is not valued too expensively and it also shows a decent 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.
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
Looking at the Return On Assets, with a value of 9.10%, AYI belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
AYI has a Return On Equity of 16.54%. This is amongst the best in the industry. AYI outperforms 89.36% of its industry peers.
AYI has a Return On Invested Capital of 11.21%. This is amongst the best in the industry. AYI outperforms 85.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AYI is above the industry average of 9.87%.
| 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 87.23% of its industry peers.
In the last couple of years the Profit Margin of AYI has grown nicely.
Looking at the Operating Margin, with a value of 13.86%, AYI belongs to the top of the industry, outperforming 86.17% of the companies in the same industry.
In the last couple of years the Operating Margin of AYI has grown nicely.
The Gross Margin of AYI (46.94%) is better than 94.68% of its industry peers.
AYI's Gross Margin has improved in the last couple of years.
| 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
AYI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AYI has less shares outstanding than it did 1 year ago.
AYI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AYI has an improved debt to assets ratio.
2.2 Solvency
AYI has an Altman-Z score of 5.16. This indicates that AYI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.16, AYI belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
AYI has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as AYI would need 2.41 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.41, AYI belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
AYI has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
AYI's Debt to Equity ratio of 0.40 is in line compared to the rest of the industry. AYI outperforms 51.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.16 |
ROIC/WACC1.13
WACC9.96%
2.3 Liquidity
A Current Ratio of 1.95 indicates that AYI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.95, AYI is in line with its industry, outperforming 51.06% of the companies in the same industry.
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.
The Quick ratio of AYI (1.36) 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 | 1.36 |
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.
Looking at the last year, AYI shows a small growth in Revenue. The Revenue has grown by 2.78% in the last year.
AYI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.90% yearly.
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
Based on estimates for the next years, AYI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.54% on average per year.
The Revenue is expected to grow by 8.12% on average over the next years. This is quite good.
EPS Next Y10.33%
EPS Next 2Y11.42%
EPS Next 3Y10.16%
EPS Next 5Y10.54%
Revenue Next Year13%
Revenue Next 2Y11.6%
Revenue Next 3Y9.36%
Revenue Next 5Y8.12%
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
A Price/Earnings ratio of 16.91 indicates a correct valuation of AYI.
AYI's Price/Earnings ratio is rather cheap when compared to the industry. AYI is cheaper than 84.04% of the companies in the same industry.
AYI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
AYI is valuated correctly with a Price/Forward Earnings ratio of 14.15.
85.11% of the companies in the same industry are more expensive than AYI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AYI to the average of the S&P500 Index (22.19), we can say AYI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 14.15 |
4.2 Price Multiples
79.79% of the companies in the same industry are more expensive than AYI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AYI is valued cheaper than 82.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.56 | ||
| EV/EBITDA | 14.13 |
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)1.64
PEG (5Y)1.67
EPS Next 2Y11.42%
EPS Next 3Y10.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.25%, AYI is not a good candidate for dividend investing.
AYI's Dividend Yield is a higher than the industry average which is at 4.43.
With a Dividend Yield of 0.25, AYI pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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
4.65% of the earnings are spent on dividend by AYI. This is a low number and sustainable payout ratio.
AYI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.65%
EPS Next 2Y11.42%
EPS Next 3Y10.16%
273.08
-4.35 (-1.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.4%
Inst Owner Change-0.58%
Ins Owners0.23%
Ins Owner Change0.11%
Market Cap8.44B
Analysts75.38
Price Target321.88 (17.87%)
Short Float %2.32%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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)1.38%
PT rev (3m)-5.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.49%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 14.15 | ||
| P/S | 2.13 | ||
| P/FCF | 18.56 | ||
| P/OCF | 16.28 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.13 |
EPS(TTM)16.15
EY5.91%
EPS(NY)19.31
Fwd EY7.07%
FCF(TTM)14.71
FCFY5.39%
OCF(TTM)16.77
OCFY6.14%
SpS128.1
BVpS81.57
TBVpS-1.78
PEG (NY)1.64
PEG (5Y)1.67
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 | 5.16 |
F-Score5
WACC9.96%
ROIC/WACC1.13
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 Y10.33%
EPS Next 2Y11.42%
EPS Next 3Y10.16%
EPS Next 5Y10.54%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%11.08%
Revenue Next Year13%
Revenue Next 2Y11.6%
Revenue Next 3Y9.36%
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%