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 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. With these ratings, AYI could be worth investigating further 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.
Each year in the past 5 years AYI had a positive operating cash flow.
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 better Return On Equity (16.54%) than 89.36% of its industry peers.
The Return On Invested Capital of AYI (11.21%) is better than 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
Looking at the Profit Margin, with a value of 10.53%, AYI belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
AYI's Profit Margin has improved in the last couple of years.
AYI has a Operating Margin of 13.86%. This is amongst the best in the industry. AYI outperforms 86.17% of its industry peers.
In the last couple of years the Operating Margin of AYI has grown nicely.
AYI has a Gross Margin of 46.94%. This is amongst the best in the industry. AYI outperforms 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AYI is creating some value.
The number of shares outstanding for AYI has been reduced compared to 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
An Altman-Z score of 5.44 indicates that AYI is not in any danger for bankruptcy at the moment.
AYI's Altman-Z score of 5.44 is amongst the best of the industry. AYI outperforms 84.04% 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.
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.
A Debt/Equity ratio of 0.40 indicates that AYI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, AYI is in line with its industry, outperforming 51.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 5.44 |
ROIC/WACC1.12
WACC10.01%
2.3 Liquidity
A Current Ratio of 1.95 indicates that AYI should not have too much problems paying its short term obligations.
AYI has a Current ratio (1.95) which is in line with 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's Quick ratio of 1.36 is in line compared to the rest of the industry. AYI outperforms 57.45% of 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
The Earnings Per Share has grown by an nice 12.48% over the past year.
The Earnings Per Share has been growing by 10.15% on average over the past years. This is quite good.
The Revenue has decreased by -2.81% in the past year.
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)12.48%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%23.37%
Revenue 1Y (TTM)-2.81%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%21.74%
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.
AYI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.12% yearly.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.63, AYI is valued on the expensive side.
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.
The average S&P500 Price/Earnings ratio is at 26.86. AYI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.63, which indicates a correct valuation of AYI.
81.91% of the companies in the same industry are more expensive than AYI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.43. AYI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AYI is valued a bit cheaper than the industry average as 79.79% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AYI indicates a rather cheap valuation: AYI is cheaper than 82.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.51 | ||
| EV/EBITDA | 15.62 |
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)1.71
PEG (5Y)1.74
EPS Next 2Y11.42%
EPS Next 3Y10.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.24%, AYI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.47, AYI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.24, AYI pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
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
4.65% 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.
DP4.65%
EPS Next 2Y11.42%
EPS Next 3Y10.16%
NYSE:AYI (6/27/2025, 2:31:03 PM)
301.77
-2.41 (-0.79%)
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 Cap9.32B
Analysts75.38
Price Target321.88 (6.66%)
Short Float %2.32%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
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 | 17.63 | ||
| Fwd PE | 15.63 | ||
| P/S | 2.36 | ||
| P/FCF | 20.51 | ||
| P/OCF | 17.99 | ||
| P/B | 3.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.62 |
EPS(TTM)17.12
EY5.67%
EPS(NY)19.31
Fwd EY6.4%
FCF(TTM)14.71
FCFY4.88%
OCF(TTM)16.77
OCFY5.56%
SpS128.1
BVpS81.57
TBVpS-1.78
PEG (NY)1.71
PEG (5Y)1.74
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 | 5.44 |
F-Score5
WACC10.01%
ROIC/WACC1.12
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)12.48%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%23.37%
EPS Next Y10.33%
EPS Next 2Y11.42%
EPS Next 3Y10.16%
EPS Next 5Y10.54%
Revenue 1Y (TTM)-2.81%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%21.74%
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%