ACUITY INC (AYI) Stock Fundamental Analysis
NYSE:AYI - New York Stock Exchange, Inc. - US00508Y1029 - Common Stock - Currency: USD
AYI gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 93 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 valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, AYI could be worth investigating further for value and quality investing!.
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.
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
AYI's Return On Assets of 8.64% is amongst the best of the industry. AYI outperforms 89.25% of its industry peers.
AYI has a Return On Equity of 15.54%. This is amongst the best in the industry. AYI outperforms 88.17% of its industry peers.
AYI has a better Return On Invested Capital (11.84%) than 90.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AYI is above the industry average of 9.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.64% | ||
| ROE | 15.54% | ||
| ROIC | 11.84% |
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
AYI has a better Profit Margin (9.63%) than 86.02% of its industry peers.
In the last couple of years the Profit Margin of AYI has grown nicely.
AYI has a better Operating Margin (14.14%) than 87.10% of its industry peers.
AYI's Operating Margin has improved in the last couple of years.
AYI's Gross Margin of 47.40% is amongst the best of the industry. AYI outperforms 93.55% of its industry peers.
AYI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.14% | ||
| PM (TTM) | 9.63% | ||
| GM | 47.4% |
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
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.
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 5.39. This indicates that AYI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.39, AYI belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
AYI has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
The Debt to FCF ratio of AYI (1.97) is better than 88.17% of its industry peers.
AYI has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
AYI has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: AYI outperforms 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 5.39 |
ROIC/WACC1.35
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.99 indicates that AYI should not have too much problems paying its short term obligations.
AYI has a Current ratio of 1.99. This is comparable to the rest of the industry: AYI outperforms 52.69% of its industry peers.
A Quick Ratio of 1.38 indicates that AYI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.38, AYI is in line with its industry, outperforming 58.06% of the companies in the same 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 | 1.99 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.48% 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 10.15% yearly.
The Revenue has grown by 9.16% in the past year. This is quite good.
The Revenue has been growing slightly by 0.90% on average over the past years.
EPS 1Y (TTM)12.48%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%23.37%
Revenue 1Y (TTM)9.16%
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 Y13.28%
EPS Next 2Y11.7%
EPS Next 3Y10.77%
EPS Next 5Y10.54%
Revenue Next Year13.54%
Revenue Next 2Y11.19%
Revenue Next 3Y9%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AYI is valuated rather expensively with a Price/Earnings ratio of 17.14.
87.10% 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 (27.54), we can say AYI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.12, the valuation of AYI can be described as correct.
84.95% of the companies in the same industry are more expensive than AYI, based on the Price/Forward Earnings ratio.
AYI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 15.12 |
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 82.80% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AYI indicates a rather cheap valuation: AYI is cheaper than 84.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.75 | ||
| EV/EBITDA | 13.72 |
4.3 Compensation for Growth
The 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)1.29
PEG (5Y)1.69
EPS Next 2Y11.7%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
AYI has a yearly dividend return of 0.23%, which is pretty low.
AYI's Dividend Yield is a higher than the industry average which is at 3.97.
With a Dividend Yield of 0.23, AYI pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.39%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
AYI pays out 5.01% of its income as dividend. This is a sustainable payout ratio.
The dividend of AYI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP5.01%
EPS Next 2Y11.7%
EPS Next 3Y10.77%
NYSE:AYI (7/21/2025, 2:44:02 PM)
293.44
+0.78 (+0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.4%
Inst Owner Change-1%
Ins Owners0.23%
Ins Owner Change-1.46%
Market Cap8.99B
Analysts75.71
Price Target345.54 (17.75%)
Short Float %2.08%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.59
Dividend Growth(5Y)2.39%
DP5.01%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.17%
Min EPS beat(2)-0.15%
Max EPS beat(2)14.48%
EPS beat(4)2
Avg EPS beat(4)3.71%
Min EPS beat(4)-0.5%
Max EPS beat(4)14.48%
EPS beat(8)6
Avg EPS beat(8)4.85%
EPS beat(12)9
Avg EPS beat(12)5.63%
EPS beat(16)13
Avg EPS beat(16)7.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)1.6%
Revenue beat(4)1
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)1.6%
Revenue beat(8)1
Avg Revenue beat(8)-1.38%
Revenue beat(12)3
Avg Revenue beat(12)-1.41%
Revenue beat(16)7
Avg Revenue beat(16)-0.16%
PT rev (1m)8.83%
PT rev (3m)4.16%
EPS NQ rev (1m)-4.4%
EPS NQ rev (3m)-4.4%
EPS NY rev (1m)2.67%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 15.12 | ||
| P/S | 2.16 | ||
| P/FCF | 17.75 | ||
| P/OCF | 15.69 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.72 |
EPS(TTM)17.12
EY5.83%
EPS(NY)19.4
Fwd EY6.61%
FCF(TTM)16.53
FCFY5.63%
OCF(TTM)18.7
OCFY6.37%
SpS136.06
BVpS84.33
TBVpS-0.55
PEG (NY)1.29
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.64% | ||
| ROE | 15.54% | ||
| ROCE | 15.33% | ||
| ROIC | 11.84% | ||
| ROICexc | 13.11% | ||
| ROICexgc | 52.1% | ||
| OM | 14.14% | ||
| PM (TTM) | 9.63% | ||
| GM | 47.4% | ||
| FCFM | 12.15% |
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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 60.93% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 17.76 | ||
| Cash Conversion | 81.99% | ||
| Profit Quality | 126.13% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 5.39 |
F-Score5
WACC8.8%
ROIC/WACC1.35
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 Y13.28%
EPS Next 2Y11.7%
EPS Next 3Y10.77%
EPS Next 5Y10.54%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%21.74%
Revenue Next Year13.54%
Revenue Next 2Y11.19%
Revenue Next 3Y9%
Revenue Next 5Y8.12%
EBIT growth 1Y12.09%
EBIT growth 3Y8.89%
EBIT growth 5Y3.61%
EBIT Next Year24.61%
EBIT Next 3Y13.78%
EBIT Next 5Y11.5%
FCF growth 1Y-8.86%
FCF growth 3Y15.02%
FCF growth 5Y4.68%
OCF growth 1Y-7.89%
OCF growth 3Y14.85%
OCF growth 5Y4.59%