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AYI

Acuity BrandsNYSE:AYI Stock Report

Last Price

US$195.69

Market Cap

US$6.8b

7D

-5.3%

1Y

59.2%

Updated

21 Jan, 2022

Data

Company Financials +
AYI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends0/6

AYI Stock Overview

Acuity Brands, Inc. provides lighting and building management solutions in North America and internationally.

Rewards

Trading at 18.7% below our estimate of its fair value

Earnings are forecast to grow 6.55% per year

Risk Analysis

No risks detected for AYI from our risk checks.

Acuity Brands Competitors

Eaton

NYSE:ETN

US$64.0b

Emerson Electric

NYSE:EMR

US$55.4b

Rockwell Automation

NYSE:ROK

US$36.5b

AMETEK

NYSE:AME

US$31.6b

Price History & Performance

Summary of all time highs, changes and price drops for Acuity Brands
Historical stock prices
Current Share PriceUS$195.69
52 Week HighUS$224.59
52 Week LowUS$117.19
Beta1.61
1 Month Change-5.07%
3 Month Change-4.38%
1 Year Change59.24%
3 Year Change64.74%
5 Year Change-4.71%
Change since IPO1,405.31%

Recent News & Updates

Jan 02
A Look At The Fair Value Of Acuity Brands, Inc. (NYSE:AYI)

A Look At The Fair Value Of Acuity Brands, Inc. (NYSE:AYI)

Today we will run through one way of estimating the intrinsic value of Acuity Brands, Inc. ( NYSE:AYI ) by taking the...

Dec 20
Does Acuity Brands (NYSE:AYI) Have A Healthy Balance Sheet?

Does Acuity Brands (NYSE:AYI) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

AYIUS ElectricalUS Market
7D-5.3%-6.7%-6.1%
1Y59.2%-9.8%4.2%

Return vs Industry: AYI exceeded the US Electrical industry which returned -8.2% over the past year.

Return vs Market: AYI exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is AYI's price volatile compared to industry and market?
AYI volatility
AYI Average Weekly Movement3.9%
Electrical Industry Average Movement9.3%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: AYI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AYI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200113,000Neil Ashehttps://www.acuitybrands.com

Acuity Brands, Inc. provides lighting and building management solutions in North America and internationally. The company operates through two segments, Acuity Brands Lighting and Lighting Controls (ABL); and the Intelligent Spaces Group (ISG). The ABL segment provides commercial, architectural, and specialty lighting solutions, as well as lighting controls and components for various indoor and outdoor applications under the Lithonia Lighting, Holophane, Peerless, Gotham, Mark Architectural Lighting, Winona Lighting, Juno, Indy, Aculux, Healthcare Lighting, Hydrel, American Electric Lighting, Sunoptics, eldoLED, nLight, Sensor Switch, IOTA, A-Light, Cyclone, Eureka, Lumniaire LED, Luminis, Dark to Light, and RELOC Wiring Solutions brands.

Acuity Brands Fundamentals Summary

How do Acuity Brands's earnings and revenue compare to its market cap?
AYI fundamental statistics
Market CapUS$6.77b
Earnings (TTM)US$334.30m
Revenue (TTM)US$3.60b

20.3x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AYI income statement (TTM)
RevenueUS$3.60b
Cost of RevenueUS$2.07b
Gross ProfitUS$1.53b
ExpensesUS$1.19b
EarningsUS$334.30m

Last Reported Earnings

Nov 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)9.66
Gross Margin42.51%
Net Profit Margin9.30%
Debt/Equity Ratio23.9%

How did AYI perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

6%

Payout Ratio

Valuation

Is Acuity Brands undervalued compared to its fair value and its price relative to the market?

18.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AYI ($195.69) is trading below our estimate of fair value ($240.82)

Significantly Below Fair Value: AYI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AYI is good value based on its PE Ratio (20.3x) compared to the US Electrical industry average (23.2x).

PE vs Market: AYI is poor value based on its PE Ratio (20.3x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: AYI is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: AYI is overvalued based on its PB Ratio (3.3x) compared to the US Electrical industry average (2.3x).


Future Growth

How is Acuity Brands forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AYI's forecast earnings growth (6.5% per year) is above the savings rate (2%).

Earnings vs Market: AYI's earnings (6.5% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: AYI's earnings are forecast to grow, but not significantly.

Revenue vs Market: AYI's revenue (4.7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: AYI's revenue (4.7% 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 (18.3%).


Past Performance

How has Acuity Brands performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AYI has high quality earnings.

Growing Profit Margin: AYI's current net profit margins (9.3%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: AYI's earnings have declined by 2.9% per year over the past 5 years.

Accelerating Growth: AYI's earnings growth over the past year (33.2%) exceeds its 5-year average (-2.9% per year).

Earnings vs Industry: AYI earnings growth over the past year (33.2%) underperformed the Electrical industry 56.7%.


Return on Equity

High ROE: AYI's Return on Equity (16.1%) is considered low.


Financial Health

How is Acuity Brands's financial position?


Financial Position Analysis

Short Term Liabilities: AYI's short term assets ($1.6B) exceed its short term liabilities ($695.2M).

Long Term Liabilities: AYI's short term assets ($1.6B) exceed its long term liabilities ($837.5M).


Debt to Equity History and Analysis

Debt Level: AYI has more cash than its total debt.

Reducing Debt: AYI's debt to equity ratio has increased from 20.6% to 23.9% over the past 5 years.

Debt Coverage: AYI's debt is well covered by operating cash flow (74.5%).

Interest Coverage: AYI's interest payments on its debt are well covered by EBIT (18.9x 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 (1.36%).

High Dividend: AYI's dividend (0.27%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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?

2.0yrs

Average management tenure


CEO

Neil Ashe (53 yo)

2yrs

Tenure

US$15,003,563

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 since January 06, 2021. He joined Acuity Brands, Inc on Ja...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD15.00M) is above average for companies of similar size in the US market ($USD6.45M).

Compensation vs Earnings: Neil's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AYI's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: AYI's board of directors are considered experienced (4.6 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 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
  • Implied Market Cap: US$6.774b
  • Shares outstanding: 34.62m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:43
End of Day Share Price2022/01/21 00:00
Earnings2021/11/30
Annual Earnings2021/08/31


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.