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 86 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
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
The Return On Assets of AYI (10.71%) is better than 92.94% of its industry peers.
AYI has a better Return On Equity (17.57%) than 88.24% of its industry peers.
With an excellent Return On Invested Capital value of 13.89%, AYI belongs to the best of the industry, outperforming 90.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AYI is in line with the industry average of 11.35%.
The 3 year average ROIC (13.30%) for AYI is below the current ROIC(13.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 17.57% | ||
| ROIC | 13.89% |
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
The Profit Margin of AYI (9.81%) is better than 83.53% of its industry peers.
In the last couple of years the Profit Margin of AYI has declined.
Looking at the Operating Margin, with a value of 13.61%, AYI belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
In the last couple of years the Operating Margin of AYI has remained more or less at the same level.
With an excellent Gross Margin value of 44.94%, AYI belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
AYI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.61% | ||
| PM (TTM) | 9.81% | ||
| GM | 44.94% |
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%
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.
Compared to 1 year ago, AYI has an improved debt to assets ratio.
2.2 Solvency
AYI has an Altman-Z score of 6.71. This indicates that AYI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.71, AYI belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
The Debt to FCF ratio of AYI is 0.98, which is an excellent value as it means it would take AYI, only 0.98 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AYI (0.98) is better than 91.76% of its industry peers.
AYI has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
AYI's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. AYI outperforms 54.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 6.71 |
ROIC/WACC1.35
WACC10.29%
2.3 Liquidity
A Current Ratio of 2.59 indicates that AYI has no problem at all paying its short term obligations.
AYI's Current ratio of 2.59 is fine compared to the rest of the industry. AYI outperforms 70.59% of its industry peers.
AYI has a Quick Ratio of 1.96. 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 better Quick ratio (1.96) than 74.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.24% over the past year.
AYI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.64% yearly.
The Revenue has decreased by -6.35% in the past year.
The Revenue has been growing slightly by 1.44% on average over the past years.
EPS 1Y (TTM)7.24%
EPS 3Y19.43%
EPS 5Y9.64%
EPS growth Q2Q10.46%
Revenue 1Y (TTM)-6.35%
Revenue growth 3Y5.92%
Revenue growth 5Y1.44%
Revenue growth Q2Q-4%
3.2 Future
AYI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.24% yearly.
AYI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.39% yearly.
EPS Next Y10.47%
EPS Next 2Y8.39%
EPS Next 3Y6.24%
EPS Next 5YN/A
Revenue Next Year-2.27%
Revenue Next 2Y0.87%
Revenue Next 3Y1.39%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
AYI is valuated correctly with a Price/Earnings ratio of 16.90.
Based on the Price/Earnings ratio, AYI is valued cheaper than 81.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.83, AYI is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.15 indicates a correct valuation of AYI.
Based on the Price/Forward Earnings ratio, AYI is valued cheaply inside the industry as 85.88% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.32. AYI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.9 | ||
| Fwd PE | 15.15 |
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.
Based on the Price/Free Cash Flow ratio, AYI is valued cheaply inside the industry as 89.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.31 | ||
| EV/EBITDA | 12.34 |
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)1.61
PEG (5Y)1.75
EPS Next 2Y8.39%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
AYI has a yearly dividend return of 0.23%, which is pretty low.
Compared to an average industry Dividend Yield of 2.46, AYI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.23, AYI pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of AYI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.53%
EPS Next 2Y8.39%
EPS Next 3Y6.24%
ACUITY BRANDS INC
NYSE:AYI (4/18/2024, 2:53:05 PM)
250.45
+1.73 (+0.7%)
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 Cap7.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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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 | 16.9 | ||
| Fwd PE | 15.15 | ||
| 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)1.61
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 17.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.61% | ||
| PM (TTM) | 9.81% | ||
| GM | 44.94% | ||
| 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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.96 | ||
| 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)
Growth
EPS 1Y (TTM)7.24%
EPS 3Y19.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.35%
Revenue growth 3Y5.92%
Revenue growth 5Y
Revenue growth 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