ACUITY BRANDS INC (AYI)

US00508Y1029 - Common Stock

260.99  -9.35 (-3.46%)

Fundamental Rating

7

AYI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 86 industry peers in the Electrical Equipment industry. AYI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AYI has a correct valuation and a medium growth rate.



8

1. Profitability

1.1 Basic Checks

AYI had positive earnings in the past year.
In the past year AYI had a positive cash flow from operations.
Each year in the past 5 years AYI has 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 (10.61%) than 94.12% of its industry peers.
AYI has a better Return On Equity (17.15%) than 88.24% of its industry peers.
With an excellent Return On Invested Capital value of 13.44%, AYI belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
AYI had an Average Return On Invested Capital over the past 3 years of 13.30%. This is above the industry average of 11.05%.
The 3 year average ROIC (13.30%) for AYI is below the current ROIC(13.44%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.61%
ROE 17.15%
ROIC 13.44%
ROA(3y)9.92%
ROA(5y)9.46%
ROE(3y)17.41%
ROE(5y)16.22%
ROIC(3y)13.3%
ROIC(5y)12.82%

1.3 Margins

AYI has a Profit Margin of 10.12%. This is amongst the best in the industry. AYI outperforms 85.88% of its industry peers.
AYI's Profit Margin has declined in the last couple of years.
The Operating Margin of AYI (13.77%) is better than 85.88% of its industry peers.
In the last couple of years the Operating Margin of AYI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 45.45%, AYI belongs to the top of the industry, outperforming 95.29% of the companies in the same industry.
In the last couple of years the Gross Margin of AYI has remained more or less at the same level.
Industry RankSector Rank
OM 13.77%
PM (TTM) 10.12%
GM 45.45%
OM growth 3Y4.09%
OM growth 5Y0.15%
PM growth 3Y5.46%
PM growth 5Y-1.62%
GM growth 3Y0.93%
GM growth 5Y1.44%

9

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.
The number of shares outstanding for AYI has been reduced compared to 1 year ago.
Compared to 5 years ago, AYI has less shares outstanding
AYI has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 6.93 indicates that AYI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.93, AYI belongs to the top of the industry, outperforming 92.94% of the companies in the same industry.
The Debt to FCF ratio of AYI is 1.01, which is an excellent value as it means it would take AYI, only 1.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.01, AYI belongs to the best of the industry, outperforming 89.41% of the companies in the same industry.
AYI has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
AYI's Debt to Equity ratio of 0.22 is in line compared to the rest of the industry. AYI outperforms 52.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 1.01
Altman-Z 6.93
ROIC/WACC1.29
WACC10.4%

2.3 Liquidity

A Current Ratio of 2.77 indicates that AYI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.77, AYI is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
AYI has a Quick Ratio of 2.15. This indicates that AYI is financially healthy and has no problem in meeting its short term obligations.
AYI's Quick ratio of 2.15 is fine compared to the rest of the industry. AYI outperforms 77.65% of its industry peers.
Industry RankSector Rank
Current Ratio 2.77
Quick Ratio 2.15

4

3. Growth

3.1 Past

AYI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, which is quite good.
Measured over the past years, AYI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.64% on average per year.
AYI shows a decrease in Revenue. In the last year, the revenue decreased by -5.75%.
Measured over the past years, AYI shows a small growth in Revenue. The Revenue has been growing by 1.44% on average per year.
EPS 1Y (TTM)8.33%
EPS 3Y19.43%
EPS 5Y9.64%
EPS Q2Q%10.67%
Revenue 1Y (TTM)-5.75%
Revenue growth 3Y5.92%
Revenue growth 5Y1.44%
Sales Q2Q%-3.22%

3.2 Future

AYI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.04% yearly.
The Revenue is expected to grow by 1.72% on average over the next years.
EPS Next Y11.19%
EPS Next 2Y9.17%
EPS Next 3Y7.04%
EPS Next 5YN/A
Revenue Next Year-1.82%
Revenue Next 2Y1.23%
Revenue Next 3Y1.72%
Revenue Next 5YN/A

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.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.15, AYI is valued on the expensive side.
AYI's Price/Earnings ratio is a bit cheaper when compared to the industry. AYI is cheaper than 78.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.53. AYI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.56, the valuation of AYI can be described as correct.
Based on the Price/Forward Earnings ratio, AYI is valued cheaper than 82.35% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.94, AYI is valued a bit cheaper.
Industry RankSector Rank
PE 17.15
Fwd PE 15.56

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AYI is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
84.71% of the companies in the same industry are more expensive than AYI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.34
EV/EBITDA 13.16

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)1.53
PEG (5Y)1.78
EPS Next 2Y9.17%
EPS Next 3Y7.04%

6

5. Dividend

5.1 Amount

With a yearly dividend of 0.25%, AYI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.36, AYI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, AYI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.25%

5.2 History

The dividend of AYI has a limited annual growth rate of 0.25%.
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)0.25%
Div Incr Years0
Div Non Decr Years15

5.3 Sustainability

4.53% 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.
DP4.53%
EPS Next 2Y9.17%
EPS Next 3Y7.04%

ACUITY BRANDS INC

NYSE:AYI (7/17/2024, 2:00:31 PM)

260.99

-9.35 (-3.46%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.04B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.25%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 17.15
Fwd PE 15.56
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.53
PEG (5Y)1.78
Profitability
Industry RankSector Rank
ROA 10.61%
ROE 17.15%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.77%
PM (TTM) 10.12%
GM 45.45%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.77
Quick Ratio 2.15
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.33%
EPS 3Y19.43%
EPS 5Y
EPS Q2Q%
EPS Next Y11.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.75%
Revenue growth 3Y5.92%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y