ACUITY INC (AYI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AYI - US00508Y1029 - Common Stock
373.32 USD
+0.98 (+0.26%)
373.32 USD
0 (0%)
Overall AYI gets a fundamental rating of 7 out of 10. We evaluated AYI against 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. These ratings could make AYI a good candidate 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.
In the past 5 years AYI has always been profitable.
AYI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AYI has a Return On Assets of 8.34%. This is amongst the best in the industry. AYI outperforms 86.81% of its industry peers.
AYI has a Return On Equity of 14.55%. This is amongst the best in the industry. AYI outperforms 86.81% of its industry peers.
AYI's Return On Invested Capital of 12.25% is amongst the best of the industry. AYI outperforms 90.11% 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 9.90%.
| 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
AYI has a better Profit Margin (9.13%) than 83.52% of its industry peers.
AYI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.10%, AYI belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
In the last couple of years the Operating Margin of AYI has grown nicely.
Looking at the Gross Margin, with a value of 47.83%, AYI belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
AYI's Gross Margin has improved in the last couple of years.
| 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.
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
Compared to 1 year ago, AYI has a worse debt to assets ratio.
2.2 Solvency
AYI has an Altman-Z score of 6.18. This indicates that AYI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.18, AYI belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
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.
The Debt to FCF ratio of AYI (1.68) is better than 91.21% 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.
With a Debt to Equity ratio value of 0.33, AYI perfoms like the industry average, outperforming 56.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 6.18 |
ROIC/WACC1.43
WACC8.54%
2.3 Liquidity
AYI has a Current Ratio of 1.95. This is a normal value and indicates that AYI is financially healthy and should not expect problems in meeting its short term obligations.
AYI has a Current ratio of 1.95. This is comparable to the rest of the industry: AYI outperforms 56.04% of its industry peers.
A Quick Ratio of 1.33 indicates that AYI should not have too much problems paying its short term obligations.
AYI has a Quick ratio (1.33) which 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.
The Revenue has been growing slightly by 5.49% on average over the past years.
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.
The Revenue is expected to grow by 6.30% on average over the next years.
EPS Next Y11.59%
EPS Next 2Y10.65%
EPS Next 3Y10.3%
EPS Next 5Y9.11%
Revenue Next Year9.39%
Revenue Next 2Y7.26%
Revenue Next 3Y6.24%
Revenue Next 5Y6.3%
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 decreasing.
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
Based on the Price/Earnings ratio of 20.72, the valuation of AYI can be described as rather expensive.
83.52% of the companies in the same industry are more expensive than AYI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AYI to the average of the S&P500 Index (26.92), we can say AYI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.57, the valuation of AYI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, AYI is valued cheaply inside the industry as 82.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, AYI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.72 | ||
| Fwd PE | 18.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AYI indicates a rather cheap valuation: AYI is cheaper than 82.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AYI is valued cheaper than 86.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.44 | ||
| EV/EBITDA | 15.96 |
4.3 Compensation for Growth
AYI's 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)1.79
PEG (5Y)1.23
EPS Next 2Y10.65%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
AYI has a yearly dividend return of 0.18%, which is pretty low.
AYI's Dividend Yield is rather good when compared to the industry average which is at 0.27. AYI pays more dividend than 80.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, AYI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
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
AYI pays out 5.19% of its income as dividend. This is a sustainable payout ratio.
AYI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP5.19%
EPS Next 2Y10.65%
EPS Next 3Y10.3%
373.32
+0.98 (+0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97.83%
Inst Owner Change-7.03%
Ins Owners0.31%
Ins Owner Change6.7%
Market Cap11.43B
Revenue(TTM)4.35B
Net Income(TTM)396.60M
Analysts78.46
Price Target407.56 (9.17%)
Short Float %2.37%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
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)0%
PT rev (3m)15.39%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)2.36%
EPS NY rev (1m)0.04%
EPS NY rev (3m)3.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.72 | ||
| Fwd PE | 18.57 | ||
| P/S | 2.63 | ||
| P/FCF | 21.44 | ||
| P/OCF | 19 | ||
| P/B | 4.19 | ||
| P/tB | 87.63 | ||
| EV/EBITDA | 15.96 |
EPS(TTM)18.02
EY4.83%
EPS(NY)20.11
Fwd EY5.39%
FCF(TTM)17.41
FCFY4.66%
OCF(TTM)19.65
OCFY5.26%
SpS141.97
BVpS89.02
TBVpS4.26
PEG (NY)1.79
PEG (5Y)1.23
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 | 6.18 |
F-Score5
WACC8.54%
ROIC/WACC1.43
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 Y11.59%
EPS Next 2Y10.65%
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 Year9.39%
Revenue Next 2Y7.26%
Revenue Next 3Y6.24%
Revenue Next 5Y6.3%
EBIT growth 1Y10.16%
EBIT growth 3Y6.64%
EBIT growth 5Y10.39%
EBIT Next Year29.93%
EBIT Next 3Y13.28%
EBIT Next 5Y10.85%
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 20.72 and the Price/Book (PB) ratio is 4.19.
What is the earnings growth outlook for ACUITY INC?
The Earnings per Share (EPS) of ACUITY INC (AYI) is expected to grow by 11.59% in the next year.