NYSE:AYI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 (19.3x) is below the US market (19.7x)

Earnings are forecast to grow 5.37% per year

Risk Analysis

No risks detected for AYI from our risk checks.


Snowflake Analysis

Flawless balance sheet and fair value.


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

10.3%

AYI

4.3%

US Electrical

2.8%

US Market


1 Year Return

-7.4%

AYI

34.9%

US Electrical

20.9%

US Market

Return vs Industry: AYI underperformed the US Electrical industry which returned 34.8% over the past year.

Return vs Market: AYI underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

AYIIndustryMarket
7 Day10.3%4.3%2.8%
30 Day34.9%20.0%11.1%
90 Day9.2%18.3%6.5%
1 Year-6.9%-7.4%37.7%34.9%23.6%20.9%
3 Year-26.5%-27.5%59.8%50.8%47.3%37.6%
5 Year-45.6%-46.6%74.4%61.5%94.3%72.9%

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

Valuation

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

19.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AYI ($121.14) is trading above our estimate of fair value ($114.22)

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 (19.3x) compared to the US Electrical industry average (30.4x).

PE vs Market: AYI is good value based on its PE Ratio (19.3x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: AYI is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: AYI is good value based on its PB Ratio (2.2x) compared to the US Electrical industry average (4.5x).


Next Steps

Future Growth

How is Acuity Brands forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AYI's forecast earnings growth (5.4% per year) is above the savings rate (2.2%).

Earnings vs Market: AYI's earnings (5.4% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: AYI's revenue (0.3% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: AYI's revenue (0.3% 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 (11.9%).


Next Steps

Past Performance

How has Acuity Brands performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AYI has high quality earnings.

Growing Profit Margin: AYI's current net profit margins (7.5%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: AYI's earnings have grown by 3.3% 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 (-24.8%) over the past year, making it difficult to compare to the Electrical industry average (-14.7%).


Return on Equity

High ROE: AYI's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Acuity Brands's financial position?


Financial Position Analysis

Short Term Liabilities: AYI's short term assets ($1.4B) exceed its short term liabilities ($617.6M).

Long Term Liabilities: AYI's short term assets ($1.4B) exceed its long term liabilities ($746.6M).


Debt to Equity History and Analysis

Debt Level: AYI's debt to equity ratio (18.9%) is considered satisfactory.

Reducing Debt: AYI's debt to equity ratio has reduced from 25.9% to 18.9% over the past 5 years.

Debt Coverage: AYI's debt is well covered by operating cash flow (125.9%).

Interest Coverage: AYI's interest payments on its debt are well covered by EBIT (16x coverage).


Balance Sheet


Next Steps

Dividend

What is Acuity Brands's current dividend yield, its reliability and sustainability?

0.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AYI's dividend (0.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: AYI's dividend (0.43%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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?

0.8yrs

Average management tenure


CEO

Neil Ashe (52 yo)

0.83

Tenure

Mr. Neil M. Ashe has been President, Chief Executive Officer and Director of Acuity Brands, Inc. since January 31, 2020. He is a Director of Vericity Inc. since August 07, 2019. Mr. Ashe is the Chief Execu...


Leadership Team

NamePositionTenureCompensationOwnership
Vernon Nagel
Executive Chairman16.17yrsUS$14.87m0.68%
$ 30.0m
Laurent Vernerey
Strategic Business Development Executive3yrsUS$2.80m0%
$ 0
Richard Reece
Executive VP & President of Acuity Brands Lighting0.83yrUS$7.10m0.33%
$ 14.8m
Neil Ashe
President0.83yrno datano data
Karen Holcom
Senior VP & CFO1.17yrsno data0.026%
$ 1.2m
Pete Shannin
Vice President of Investor Relations & Corporate Developmentno datano datano data
Candace Steele Flippin
Chief Communications Officerno datano datano data
Dianne Mills
Chief Human Resources Officer0.67yrno datano data
C. Smith
Senior VP10.83yrsUS$577.32kno data
Barry Goldman
Senior VP & General Counsel of Acuity Brands Lightingno datano data0.0034%
$ 152.3k

0.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: AYI's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vernon Nagel
Executive Chairman16.17yrsUS$14.87m0.68%
$ 30.0m
Neil Ashe
President0.83yrno datano data
James Hance
Independent Director6.25yrsUS$277.05k0.037%
$ 1.6m
Dominic Pileggi
Independent Director8.17yrsUS$297.05k0.0012%
$ 54.7k
Robert McCullough
Independent Director17.67yrsUS$277.05k0.018%
$ 801.1k
Peter Browning
Lead Independent Directorno dataUS$302.05k0.0031%
$ 137.3k
Ray Robinson
Independent Director18.92yrsUS$290.05k0.0086%
$ 379.2k
Julia North
Independent Director18.42yrsUS$277.05k0%
$ 0
Mary Winston
Independent Director3.67yrsUS$277.05k0.0047%
$ 207.9k
George Dillard
Independent Director3.17yrsUS$277.05k0.028%
$ 1.3m
Maya Leibman
Director0.75yrno data0%
$ 0
W. Battle
Independent Director6.17yrsUS$275.05k0.0080%
$ 351.8k

6.3yrs

Average Tenure

66yo

Average Age

Experienced Board: AYI's board of directors are considered experienced (6.3 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$4.414b
  • Shares outstanding: 36.44m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AYINYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2001
AQ8DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2001
0H90LSE (London Stock Exchange)YesCommon StockGBUSDNov 2001

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 00:19
End of Day Share Price2020/11/27 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


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.