ACUITY BRANDS INC (AYI)
US00508Y1029 - Common Stock
Taking everything into account, AYI scores 7 out of 10 in our fundamental rating. AYI was compared to 91 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AYI was profitable.
AYI had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 11.08%, AYI belongs to the best of the industry, outperforming 95.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.77%, AYI belongs to the top of the industry, outperforming 91.01% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.67%, AYI belongs to the best of the industry, outperforming 92.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AYI is above the industry average of 10.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 17.77% | ||
| ROIC | 13.67% |
ROA(3y)10.75%
ROA(5y)9.59%
ROE(3y)18.34%
ROE(5y)16.33%
ROIC(3y)13.95%
ROIC(5y)12.7%
1.3 Margins
The Profit Margin of AYI (11.00%) is better than 88.76% of its industry peers.
AYI's Profit Margin has improved in the last couple of years.
AYI has a better Operating Margin (14.41%) than 85.39% of its industry peers.
AYI's Operating Margin has improved in the last couple of years.
AYI has a better Gross Margin (46.39%) than 94.38% of its industry peers.
In the last couple of years the Gross Margin of AYI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.41% | ||
| PM (TTM) | 11% | ||
| GM | 46.39% |
OM growth 3Y4.98%
OM growth 5Y2.57%
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.
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 has been reduced compared to a year ago.
2.2 Solvency
AYI has a debt to FCF ratio of 0.89. This is a very positive value and a sign of high solvency as it would only need 0.89 years to pay back of all of its debts.
AYI has a Debt to FCF ratio of 0.89. This is amongst the best in the industry. AYI outperforms 92.13% of its industry peers.
AYI has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
AYI has a Debt to Equity ratio (0.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC10.48%
2.3 Liquidity
AYI has a Current Ratio of 2.72. This indicates that AYI is financially healthy and has no problem in meeting its short term obligations.
AYI has a Current ratio of 2.72. This is in the better half of the industry: AYI outperforms 71.91% of its industry peers.
AYI has a Quick Ratio of 2.16. This indicates that AYI is financially healthy and has no problem in meeting its short term obligations.
AYI's Quick ratio of 2.16 is fine compared to the rest of the industry. AYI outperforms 78.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
AYI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.52%, 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 decrease in Revenue. In the last year, the revenue decreased by -2.81%.
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)10.52%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%8.31%
Revenue 1Y (TTM)-2.81%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%2.17%
3.2 Future
The Earnings Per Share is expected to grow by 6.93% on average over the next years.
The Revenue is expected to grow by 4.03% on average over the next years.
EPS Next Y6.82%
EPS Next 2Y6.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.92%
Revenue Next 2Y4.03%
Revenue Next 3YN/A
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.
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
Based on the Price/Earnings ratio of 19.12, the valuation of AYI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AYI indicates a somewhat cheap valuation: AYI is cheaper than 79.78% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 31.46. AYI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.90, the valuation of AYI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, AYI is valued a bit cheaper than 79.78% of the companies in the same industry.
AYI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.12 | ||
| Fwd PE | 17.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AYI is valued cheaper than 80.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AYI is valued cheaper than 86.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.48 | ||
| EV/EBITDA | 13.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AYI does not grow enough to justify the current Price/Earnings ratio.
AYI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)1.88
EPS Next 2Y6.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AYI has a yearly dividend return of 0.20%, which is pretty low.
Compared to an average industry Dividend Yield of 2.19, AYI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.18, AYI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
5.2 History
The dividend of AYI has a limited annual growth rate of 2.40%.
AYI has paid a dividend for at least 10 years, which is 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)2.4%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
4.31% 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.
DP4.31%
EPS Next 2Y6.93%
EPS Next 3YN/A
ACUITY BRANDS INC
NYSE:AYI (10/22/2024, 1:27:39 PM)
297.27
-5.36 (-1.77%)
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 Cap9.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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)
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Min EPS beat(4)
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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)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.12 | ||
| Fwd PE | 17.9 | ||
| 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)2.8
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.08% | ||
| ROE | 17.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.41% | ||
| PM (TTM) | 11% | ||
| GM | 46.39% | ||
| 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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.16 | ||
| 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)10.52%
EPS 3Y15.13%
EPS 5Y
EPS Q2Q%
EPS Next Y6.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.81%
Revenue growth 3Y3.53%
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