ACUITY BRANDS INC (AYI)
US00508Y1029 - Common Stock
Overall AYI gets a fundamental rating of 7 out of 10. We evaluated AYI against 87 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.
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.
In the past 5 years AYI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.15%, AYI belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.17%, AYI belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.80%, AYI belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AYI is above the industry average of 11.28%.
The last Return On Invested Capital (13.80%) for AYI is above the 3 year average (13.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.15% | ||
| ROE | 17.17% | ||
| ROIC | 13.8% |
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
AYI has a Profit Margin of 8.75%. This is amongst the best in the industry. AYI outperforms 82.56% of its industry peers.
In the last couple of years the Profit Margin of AYI has declined.
AYI has a better Operating Margin (12.66%) than 82.56% of its industry peers.
In the last couple of years the Operating Margin of AYI has remained more or less at the same level.
AYI's Gross Margin of 43.35% is amongst the best of the industry. AYI outperforms 94.19% of its industry peers.
AYI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.66% | ||
| PM (TTM) | 8.75% | ||
| GM | 43.35% |
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
AYI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AYI has less shares outstanding than it did 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
AYI has an Altman-Z score of 5.73. This indicates that AYI is financially healthy and has little risk of bankruptcy at the moment.
AYI has a better Altman-Z score (5.73) than 91.86% of its industry peers.
AYI has a debt to FCF ratio of 0.97. This is a very positive value and a sign of high solvency as it would only need 0.97 years to pay back of all of its debts.
AYI has a better Debt to FCF ratio (0.97) than 93.02% of its industry peers.
AYI has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AYI (0.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 5.73 |
ROIC/WACC1.24
WACC11.16%
2.3 Liquidity
A Current Ratio of 2.34 indicates that AYI has no problem at all paying its short term obligations.
AYI has a Current ratio of 2.34. This is comparable to the rest of the industry: AYI outperforms 56.98% of its industry peers.
AYI has a Quick Ratio of 1.72. 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 1.72 is fine compared to the rest of the industry. AYI outperforms 63.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
AYI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.15%, which is quite good.
The Earnings Per Share has been growing by 9.64% on average over the past years. This is quite good.
AYI shows a decrease in Revenue. In the last year, the revenue decreased by -1.35%.
AYI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.44% yearly.
EPS 1Y (TTM)9.15%
EPS 3Y19.43%
EPS 5Y9.64%
EPS growth Q2Q0.51%
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y5.92%
Revenue growth 5Y1.44%
Revenue growth Q2Q-9%
3.2 Future
Based on estimates for the next years, AYI will show a small growth in Earnings Per Share. The EPS will grow by 2.18% on average per year.
AYI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.42% yearly.
EPS Next Y-1.79%
EPS Next 2Y1.61%
EPS Next 3Y2.18%
EPS Next 5YN/A
Revenue Next Year-3.11%
Revenue Next 2Y0.48%
Revenue Next 3Y1.42%
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
With a Price/Earnings ratio of 12.60, AYI is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of AYI indicates a rather cheap valuation: AYI is cheaper than 87.21% of the companies listed in the same industry.
AYI is valuated rather cheaply when we compare the Price/Earnings ratio to 24.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.83 indicates a correct valuation of AYI.
AYI's Price/Forward Earnings ratio is rather cheap when compared to the industry. AYI is cheaper than 81.40% of the companies in the same industry.
AYI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 19.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AYI is valued cheaper than 87.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AYI is valued cheaply inside the industry as 90.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.73 | ||
| EV/EBITDA | 9.41 |
4.3 Compensation for Growth
AYI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y1.61%
EPS Next 3Y2.18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.29%, AYI is not a good candidate for dividend investing.
AYI's Dividend Yield is a higher than the industry average which is at 2.30.
Compared to an average S&P500 Dividend Yield of 2.63, AYI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.25%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
4.86% 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.
DP4.86%
EPS Next 2Y1.61%
EPS Next 3Y2.18%
ACUITY BRANDS INC
NYSE:AYI (11/28/2023, 7:04:00 PM)
After market: 177.35 0 (0%)177.35
-5.12 (-2.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)10-04 2023-10-04/bmo
Earnings (Next)01-08 2024-01-08/bmo
Inst Owners96.43%
Inst Owner Change-6.71%
Ins Owners1.56%
Ins Owner Change5.41%
Market Cap5.49B
Analysts70
Price Target192.34 (8.45%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Dividend Growth(5Y)0.25%
DP4.86%
Div Incr Years0
Div Non Decr Years14
Ex-Date10-17 2023-10-17 (0.13)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.76%
Min EPS beat(2)-0.06%
Max EPS beat(2)5.57%
EPS beat(4)3
Avg EPS beat(4)6.33%
Min EPS beat(4)-0.06%
Max EPS beat(4)11.4%
Revenue beat(2)0
Avg Revenue beat(2)-3.68%
Min Revenue beat(2)-5.54%
Max Revenue beat(2)-1.81%
Revenue beat(4)1
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-5.54%
Max Revenue beat(4)0.36%
PT rev (1m)3.69%
PT rev (3m)3.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 12.83 | ||
| P/S | 1.39 | ||
| P/FCF | 10.73 | ||
| P/OCF | 9.49 | ||
| P/B | 2.72 | ||
| P/tB | 12.58 | ||
| EV/EBITDA | 9.41 |
EPS(TTM)14.07
EY7.93%
EPS(NY)13.82
Fwd EY7.79%
FCF(TTM)16.52
FCFY9.32%
OCF(TTM)18.68
OCFY10.53%
SpS127.7
BVpS65.12
TBVpS14.1
PEG (NY)N/A
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.15% | ||
| ROE | 17.17% | ||
| ROCE | 17.78% | ||
| ROIC | 13.8% | ||
| ROICexc | 16.08% | ||
| ROICexgc | 46.44% | ||
| OM | 12.66% | ||
| PM (TTM) | 8.75% | ||
| GM | 43.35% | ||
| FCFM | 12.94% |
ROA(3y)9.92%
ROA(5y)9.46%
ROE(3y)17.41%
ROE(5y)16.22%
ROIC(3y)13.3%
ROIC(5y)12.82%
ROICexc(3y)15.28%
ROICexc(5y)15.12%
ROICexgc(3y)45.49%
ROICexgc(5y)47.21%
ROCE(3y)17.14%
ROCE(5y)16.52%
ROICexcg growth 3Y0.19%
ROICexcg growth 5Y-1.74%
ROICexc growth 3Y8.67%
ROICexc growth 5Y-0.5%
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%
F-Score7
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.97 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 71.57% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 17.93 | ||
| Cash Conversion | 97.41% | ||
| Profit Quality | 147.8% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 5.73 |
F-Score7
WACC11.16%
ROIC/WACC1.24
Cap/Depr(3y)58.31%
Cap/Depr(5y)57.85%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.49%
Profit Quality(3y)111.53%
Profit Quality(5y)129.89%
Growth
EPS 1Y (TTM)9.15%
EPS 3Y19.43%
EPS 5Y9.64%
EPS growth Q2Q0.51%
EPS Next Y-1.79%
EPS Next 2Y1.61%
EPS Next 3Y2.18%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.35%
Revenue growth 3Y5.92%
Revenue growth 5Y1.44%
Revenue growth Q2Q-9%
Revenue Next Year-3.11%
Revenue Next 2Y0.48%
Revenue Next 3Y1.42%
Revenue Next 5YN/A
EBIT growth 1Y-1.4%
EBIT growth 3Y10.24%
EBIT growth 5Y1.59%
EBIT Next Year5.33%
EBIT Next 3Y3.1%
EBIT Next 5YN/A
FCF growth 1Y96.84%
FCF growth 3Y4.36%
FCF growth 5Y10.56%
OCF growth 1Y82.77%
OCF growth 3Y4.62%
OCF growth 5Y10.36%