Acuity Brands
Market Cap
US$6.7b
Last Updated
2021/05/05 23:28 UTC
Data Sources
Company Financials +
Executive Summary
Acuity Brands, Inc. provides lighting and building management solutions and services for commercial, institutional, industrial, infrastructure, and residential applications in North America and internationally. More Details
Rewards
PE ratio (28.2x) is below the Electrical industry average (30x)
Risk Analysis
No risks detected for AYI from our risk checks.
Snowflake Analysis
Excellent balance sheet and slightly overvalued.
Similar Companies
Share Price & News
How has Acuity Brands's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AYI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: AYI's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
1.0%
AYI
-2.6%
US Electrical
-1.6%
US Market
1 Year Return
129.1%
AYI
89.4%
US Electrical
52.8%
US Market
Return vs Industry: AYI exceeded the US Electrical industry which returned 88.8% over the past year.
Return vs Market: AYI exceeded the US Market which returned 52.4% over the past year.
Shareholder returns
| AYI | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | -2.6% | -1.6% |
| 30 Day | 10.5% | -3.1% | 1.3% |
| 90 Day | 59.3% | -3.6% | 3.5% |
| 1 Year | 130.2%129.1% | 92.8%89.4% | 55.4%52.8% |
| 3 Year | 68.7%66.5% | 75.4%66.0% | 63.5%53.2% |
| 5 Year | -23.3%-24.7% | 100.2%85.2% | 125.8%100.7% |
Long-Term Price Volatility Vs. Market
How volatile is Acuity Brands's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Returns On Capital At Acuity Brands (NYSE:AYI) Paint A Concerning Picture3 weeks ago | Simply Wall St
Is Acuity Brands, Inc.'s (NYSE:AYI) Recent Stock Performance Influenced By Its Fundamentals In Any Way?1 month ago | Simply Wall St
Estimating The Intrinsic Value Of Acuity Brands, Inc. (NYSE:AYI)Valuation
Is Acuity Brands undervalued compared to its fair value and its price relative to the market?
28.23x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AYI ($189.65) is trading above our estimate of fair value ($167.14)
Significantly Below Fair Value: AYI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AYI is good value based on its PE Ratio (28.2x) compared to the US Electrical industry average (30x).
PE vs Market: AYI is poor value based on its PE Ratio (28.2x) compared to the US market (20.6x).
Price to Earnings Growth Ratio
PEG Ratio: AYI is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: AYI is good value based on its PB Ratio (3.5x) compared to the US Electrical industry average (3.6x).
Future Growth
How is Acuity Brands forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
6.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AYI's forecast earnings growth (6.4% per year) is above the savings rate (2%).
Earnings vs Market: AYI's earnings (6.4% per year) are forecast to grow slower than the US market (16% per year).
High Growth Earnings: AYI's earnings are forecast to grow, but not significantly.
Revenue vs Market: AYI's revenue (4% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: AYI's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AYI's Return on Equity is forecast to be low in 3 years time (16.2%).
Past Performance
How has Acuity Brands performed over the past 5 years?
-1.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AYI has high quality earnings.
Growing Profit Margin: AYI's current net profit margins (7.9%) are lower than last year (8.4%).
Past Earnings Growth Analysis
Earnings Trend: AYI's earnings have declined by 1.2% per year over the past 5 years.
Accelerating Growth: AYI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AYI had negative earnings growth (-14.1%) over the past year, making it difficult to compare to the Electrical industry average (-8.8%).
Return on Equity
High ROE: AYI's Return on Equity (13.3%) is considered low.
Financial Health
How is Acuity Brands's financial position?
Financial Position Analysis
Short Term Liabilities: AYI's short term assets ($1.3B) exceed its short term liabilities ($576.3M).
Long Term Liabilities: AYI's short term assets ($1.3B) exceed its long term liabilities ($851.4M).
Debt to Equity History and Analysis
Debt Level: AYI's debt to equity ratio (25.8%) is considered satisfactory.
Reducing Debt: AYI's debt to equity ratio has increased from 23.7% to 25.8% over the past 5 years.
Debt Coverage: AYI's debt is well covered by operating cash flow (100.9%).
Interest Coverage: AYI's interest payments on its debt are well covered by EBIT (18.1x coverage).
Balance Sheet
Dividend
What is Acuity Brands's current dividend yield, its reliability and sustainability?
0.27%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AYI's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: AYI's dividend (0.27%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: AYI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: AYI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: AYI is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AYI's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Neil Ashe (52 yo)
1.33yrs
Tenure
US$20,563,437
Compensation
Mr. Neil M. Ashe has been President, Chief Executive Officer and Director of Acuity Brands, Inc. since January 31, 2020 and serves as its Chairman. He joined Acuity Brands, Inc in January 8, 2020. He is a ...
CEO Compensation Analysis
Compensation vs Market: Neil's total compensation ($USD20.56M) is above average for companies of similar size in the US market ($USD6.49M).
Compensation vs Earnings: Insufficient data to compare Neil's compensation with company performance.
Leadership Team
Experienced Management: AYI's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
Experienced Board: AYI's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Acuity Brands, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Acuity Brands, Inc.
- Ticker: AYI
- Exchange: NYSE
- Founded: 2001
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Market Cap: US$6.696b
- Shares outstanding: 35.31m
- Website: https://www.acuitybrands.com
Number of Employees
Location
- Acuity Brands, Inc.
- 1170 Peachtree Street, N.E.
- Suite 2300
- Atlanta
- Georgia
- 30309-7676
- United States
Listings
Biography
Acuity Brands, Inc. provides lighting and building management solutions and services for commercial, institutional, industrial, infrastructure, and residential applications in North America and internation...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/05 23:28 |
| End of Day Share Price | 2021/05/05 00:00 |
| Earnings | 2021/02/28 |
| Annual Earnings | 2020/08/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.