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 is not valued too expensively and it also shows a decent growth rate. This makes AYI very considerable 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.
AYI had positive earnings in each of the past 5 years.
Each year in the past 5 years AYI had a positive operating cash flow.
1.2 Ratios
AYI has a better Return On Assets (8.34%) than 86.67% of its industry peers.
Looking at the Return On Equity, with a value of 14.55%, AYI belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
AYI has a better Return On Invested Capital (12.25%) than 86.67% of its industry peers.
AYI had an Average Return On Invested Capital over the past 3 years of 13.42%. This 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
Looking at the Profit Margin, with a value of 9.13%, AYI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
AYI's Profit Margin has improved in the last couple of years.
AYI has a better Operating Margin (14.10%) than 86.67% of its industry peers.
AYI's Operating Margin has improved in the last couple of years.
AYI has a Gross Margin of 47.83%. This is amongst the best in 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AYI is still creating some value.
Compared to 1 year ago, AYI has less shares outstanding
The number of shares outstanding for AYI has been reduced compared to 5 years ago.
The debt/assets ratio for AYI is higher compared to a year ago.
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 Altman-Z score of 6.12. This is amongst the best in the industry. AYI outperforms 84.44% 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's Debt to FCF ratio of 1.68 is amongst the best of 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
WACC8.42%
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 60.00% of the companies in the same 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.
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 | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.88% over the past year.
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 Year9.35%
Revenue Next 2Y7.23%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.33 indicates a rather expensive valuation of AYI.
Based on the Price/Earnings ratio, AYI is valued cheaply inside the industry as 84.44% of the companies are valued more expensively.
AYI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
AYI is valuated rather expensively with a Price/Forward Earnings ratio of 18.23.
Based on the Price/Forward Earnings ratio, AYI is valued cheaply inside the industry as 81.11% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AYI to the average of the S&P500 Index (36.56), we can say AYI is valued rather cheaply.
| 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.
AYI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AYI is cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.04 | ||
| EV/EBITDA | 15.67 |
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)1.76
PEG (5Y)1.2
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 3.32, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
The dividend of AYI has a limited annual growth rate of 4.77%.
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)4.77%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
5.19% of the earnings are spent on dividend by AYI. This is a low number and 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 Cap11.22B
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 | 0.19% |
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 | 21.04 | ||
| P/OCF | 18.65 | ||
| P/B | 4.12 | ||
| P/tB | 86.01 | ||
| EV/EBITDA | 15.67 |
EPS(TTM)18.02
EY4.92%
EPS(NY)20.1
Fwd EY5.49%
FCF(TTM)17.41
FCFY4.75%
OCF(TTM)19.65
OCFY5.36%
SpS141.97
BVpS89.02
TBVpS4.26
PEG (NY)1.76
PEG (5Y)1.2
Graham Number189.98
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
WACC8.42%
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.