ACUITY INC (AYI) Stock Fundamental Analysis
NYSE:AYI - New York Stock Exchange, Inc. - US00508Y1029 - Common Stock - Currency: USD
Taking everything into account, AYI scores 7 out of 10 in our fundamental rating. AYI was compared to 97 industry peers in the Electrical Equipment industry. AYI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AYI has a correct valuation and a medium growth rate. This makes AYI very considerable for quality investing!
1. Profitability
1.1 Basic Checks
AYI had positive earnings in the past year.
AYI had a positive operating cash flow in the past year.
Each year in the past 5 years AYI has been profitable.
Each year in the past 5 years AYI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AYI (9.10%) is better than 91.75% of its industry peers.
AYI has a Return On Equity of 16.54%. This is amongst the best in the industry. AYI outperforms 89.69% of its industry peers.
AYI's Return On Invested Capital of 11.21% is amongst the best of the industry. AYI outperforms 88.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AYI is above the industry average of 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.1% | ||
| ROE | 16.54% | ||
| ROIC | 11.21% |
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
With an excellent Profit Margin value of 10.53%, AYI belongs to the best of the industry, outperforming 89.69% of the companies in the same industry.
In the last couple of years the Profit Margin of AYI has grown nicely.
AYI has a Operating Margin of 13.86%. This is amongst the best in the industry. AYI outperforms 86.60% of its industry peers.
AYI's Operating Margin has improved in the last couple of years.
The Gross Margin of AYI (46.94%) is better than 93.81% of its industry peers.
In the last couple of years the Gross Margin of AYI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.86% | ||
| PM (TTM) | 10.53% | ||
| GM | 46.94% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AYI is still creating some value.
Compared to 1 year ago, AYI has less shares outstanding
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
An Altman-Z score of 4.88 indicates that AYI is not in any danger for bankruptcy at the moment.
AYI has a Altman-Z score of 4.88. This is amongst the best in the industry. AYI outperforms 86.60% of its industry peers.
The Debt to FCF ratio of AYI is 2.41, which is a good value as it means it would take AYI, 2.41 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.41, AYI is doing good in the industry, outperforming 78.35% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that AYI is not too dependend on debt financing.
AYI has a Debt to Equity ratio (0.40) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 4.88 |
ROIC/WACC1.29
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.95 indicates that AYI should not have too much problems paying its short term obligations.
AYI has a Current ratio (1.95) which is in line with its industry peers.
AYI has a Quick Ratio of 1.36. This is a normal value and indicates that AYI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.36, AYI is in the better half of the industry, outperforming 60.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.97% over the past year.
Measured over the past years, AYI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.15% on average per year.
Looking at the last year, AYI shows a small growth in Revenue. The Revenue has grown by 2.78% in the last year.
The Revenue has been growing slightly by 0.90% on average over the past years.
EPS 1Y (TTM)8.97%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%10.36%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%11.08%
3.2 Future
AYI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.83% yearly.
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 Y10.09%
EPS Next 2Y11.41%
EPS Next 3Y10.15%
EPS Next 5Y10.83%
Revenue Next Year13.26%
Revenue Next 2Y11.76%
Revenue Next 3Y9.54%
Revenue Next 5Y8.12%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
AYI is valuated correctly with a Price/Earnings ratio of 15.65.
AYI's Price/Earnings ratio is rather cheap when compared to the industry. AYI is cheaper than 81.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. AYI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.09, the valuation of AYI can be described as correct.
Based on the Price/Forward Earnings ratio, AYI is valued cheaply inside the industry as 84.54% of the companies are valued more expensively.
AYI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
79.38% of the companies in the same industry are more expensive than AYI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AYI is valued cheaply inside the industry as 80.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.18 | ||
| EV/EBITDA | 12.64 |
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)1.55
PEG (5Y)1.54
EPS Next 2Y11.41%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
AYI has a yearly dividend return of 0.28%, which is pretty low.
In the last 3 months the price of AYI has falen by -23.97%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.55, AYI pays a better dividend. On top of this AYI pays more dividend than 80.41% of the companies listed in the same industry.
With a Dividend Yield of 0.28, AYI pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.39%
Div Incr Years1
Div Non Decr Years16
5.3 Sustainability
AYI pays out 4.65% 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.
DP4.65%
EPS Next 2Y11.41%
EPS Next 3Y10.15%
252.73
+10.87 (+4.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.41%
Inst Owner Change0.57%
Ins Owners0.23%
Ins Owner Change0.11%
Market Cap7.81B
Analysts75.38
Price Target317.51 (25.63%)
Short Float %2.55%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Yearly Dividend0.59
Dividend Growth(5Y)2.39%
DP4.65%
Div Incr Years1
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.43%
Min EPS beat(2)-0.15%
Max EPS beat(2)1.01%
EPS beat(4)2
Avg EPS beat(4)0.32%
Min EPS beat(4)-0.5%
Max EPS beat(4)1.01%
EPS beat(8)5
Avg EPS beat(8)3.03%
EPS beat(12)9
Avg EPS beat(12)5.91%
EPS beat(16)13
Avg EPS beat(16)8.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)-1.46%
Revenue beat(4)0
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-2.28%
Revenue beat(12)3
Avg Revenue beat(12)-1%
Revenue beat(16)7
Avg Revenue beat(16)0.12%
PT rev (1m)-7%
PT rev (3m)-2.5%
EPS NQ rev (1m)-7.91%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)-2.95%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)10.55%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 13.09 | ||
| P/S | 1.97 | ||
| P/FCF | 17.18 | ||
| P/OCF | 15.07 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.64 |
EPS(TTM)16.15
EY6.39%
EPS(NY)19.3
Fwd EY7.64%
FCF(TTM)14.71
FCFY5.82%
OCF(TTM)16.77
OCFY6.64%
SpS128.1
BVpS81.57
TBVpS-1.78
PEG (NY)1.55
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.1% | ||
| ROE | 16.54% | ||
| ROCE | 14.52% | ||
| ROIC | 11.21% | ||
| ROICexc | 12.53% | ||
| ROICexgc | 52.51% | ||
| OM | 13.86% | ||
| PM (TTM) | 10.53% | ||
| GM | 46.94% | ||
| FCFM | 11.48% |
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 Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 65.16% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 20.79 | ||
| Cash Conversion | 80.17% | ||
| Profit Quality | 109.02% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 4.88 |
F-Score5
WACC8.66%
ROIC/WACC1.29
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)8.97%
EPS 3Y15.13%
EPS 5Y10.15%
EPS Q2Q%10.36%
EPS Next Y10.09%
EPS Next 2Y11.41%
EPS Next 3Y10.15%
EPS Next 5Y10.83%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y3.53%
Revenue growth 5Y0.9%
Sales Q2Q%11.08%
Revenue Next Year13.26%
Revenue Next 2Y11.76%
Revenue Next 3Y9.54%
Revenue Next 5Y8.12%
EBIT growth 1Y4.73%
EBIT growth 3Y8.89%
EBIT growth 5Y3.61%
EBIT Next Year24.66%
EBIT Next 3Y13.78%
EBIT Next 5Y11.5%
FCF growth 1Y6.36%
FCF growth 3Y15.02%
FCF growth 5Y4.68%
OCF growth 1Y4.6%
OCF growth 3Y14.85%
OCF growth 5Y4.59%