Acuity Brands Inc (AYI)
NYSE:AYI
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Acuity Brands
(NYSE:AYI)
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Rating:70Outperform
Price Target:
$307.00
â–²(8.53% Upside)
Action:ReiteratedDate:01/24/26
Score is supported primarily by strong financial quality (margins, ROE, and cash generation) and a constructive earnings update (growth, margin expansion, guidance reiterated, and ongoing debt paydown). These positives are tempered by clearly bearish/oversold technicals and a valuation that is not particularly cheap with a minimal dividend yield.
Positive Factors
Free cash flow generation
Consistently strong FCF conversion and 28% TTM FCF growth provide durable internal funding for share buybacks, debt paydown, and targeted R&D. High cash conversion cushions cyclicality in construction markets and supports capital allocation without relying on external financing.
Negative Factors
Choppy revenue trends
Uneven top‑line trends reduce visibility into demand normalization and complicate capacity and inventory planning. Reliance on construction and renovation cycles means revenue can swing with macro conditions, making multi‑period forecasting and stable growth execution harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistently strong FCF conversion and 28% TTM FCF growth provide durable internal funding for share buybacks, debt paydown, and targeted R&D. High cash conversion cushions cyclicality in construction markets and supports capital allocation without relying on external financing.
Read all positive factors
Acuity Brands (AYI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.56B
Dividend Yield0.18%
Average Volume (3M)450.62K
Price to Earnings (P/E)23.1
Beta (1Y)1.23
Revenue Growth13.14%
EPS Growth-6.09%
CountryUS
Employees13,200
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)4.69
Shares Outstanding30,662,620
10 Day Avg. Volume444,746
30 Day Avg. Volume450,621
Financial Highlights & Ratios
PEG Ratio-4.19
Price to Book (P/B)3.70
Price to Sales (P/S)2.32
P/FCF Ratio18.90
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue2.03
Enterprise Value/Gross Profit4.22
Enterprise Value/Ebitda13.59
Forecast
1Y Price Target
$372.50Price Target Upside31.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)19.81
Revenue Forecast (FY)$4.74B
Acuity Brands Business Overview & Revenue Model
Company Description
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). Th...
How the Company Makes Money
Acuity Brands makes money primarily by selling lighting and building-automation offerings through its operating segments. Its largest revenue stream is the sale of lighting products—such as indoor and outdoor luminaires, architectural and specialt...
Acuity Brands Key Performance Indicators (KPIs)
Any
Revenue by Segment
Reveals how different parts of the business contribute to total sales, highlighting strengths and potential growth areas within the company’s operations.
Reveals how different parts of the business contribute to total sales, highlighting strengths and potential growth areas within the company’s operations.
Data provided by:
The Fly
The FlyAcuity Brands Earnings Call Summary
Earnings Call Date:Jan 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 02, 2026
Earnings Call Sentiment Positive
The call highlighted multiple material positives: strong top‑line growth (+20% sales), meaningful profit and margin expansion (+24% adjusted operating profit, EPS +18%), solid cash generation, successful integration and growth of AIS (including QSC), and product awards/customer wins that validate strategy. Headwinds include a tepid lighting market, tariff‑driven gross margin volatility and policy/legal uncertainty, backlog normalization that may depress near‑term seasonality (notably Q2), and some portfolio gaps in select vertical components. On balance, the company delivered clear operational and financial progress while acknowledging manageable near‑term market and policy headwinds.Positive Updates
Strong Overall Revenue Growth
Total net sales of $1.1 billion, up $192 million or 20% year‑over‑year, driven by growth in both business segments and inclusion of three months of QSC sales.
Negative Updates
Tepid Lighting Market and Macroeconomic Uncertainty
Management described the lighting market as 'tepid' with customers waiting for clarity on interest rates, inflation, and policy, which could limit near‑term demand despite company share gains.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Revenue Growth
Total net sales of $1.1 billion, up $192 million or 20% year‑over‑year, driven by growth in both business segments and inclusion of three months of QSC sales.
Read all positive updates
Company Guidance
Management said guidance is unchanged from the Q4 release (the same sales and EPS guidance will be posted with the presentation) after a strong start to FY‑2026: consolidated net sales of $1.1B (+$192M, +20% YoY), adjusted operating profit $196M (+$38M, +24%), adjusted operating profit margin 17.2% (+50 bps), and adjusted diluted EPS $4.69 (+$0.72, +18%); by segment ABL sales were $895M (+$9M, +1%) with adjusted operating profit $160M and a 17.9% margin (+60 bps), AIS sales were $257M (+$184M, including three months of QSC) with adjusted operating profit $57M and a 22.0% margin (+100 bps); cash flow from operations was $141M (+$9M), the company repurchased ~$28M of stock (≈77,000 shares at ≈$357 avg), repaid $100M of its term loan this quarter and has now repaid half of the $600M used to finance QSC, and reiterated a longer‑term operating margin improvement target of roughly 50–100 bps per year.Acuity Brands Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
80
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.54B | 4.35B | 3.84B | 3.95B | 4.01B | 3.46B |
| Gross Profit | 2.18B | 2.08B | 1.78B | 1.71B | 1.67B | 1.48B |
| EBITDA | 677.30M | 655.30M | 665.00M | 588.50M | 603.20M | 520.50M |
| Net Income | 410.40M | 396.60M | 422.60M | 346.00M | 384.00M | 306.30M |
Balance Sheet | ||||||
| Total Assets | 4.65B | 4.76B | 3.81B | 3.41B | 3.48B | 3.58B |
| Cash, Cash Equivalents and Short-Term Investments | 376.10M | 422.50M | 845.80M | 397.90M | 223.20M | 491.30M |
| Total Debt | 910.10M | 1.00B | 573.50M | 590.80M | 596.10M | 556.90M |
| Total Liabilities | 1.86B | 2.03B | 1.44B | 1.39B | 1.57B | 1.53B |
| Stockholders Equity | 2.79B | 2.72B | 2.38B | 2.02B | 1.91B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | 534.50M | 533.00M | 555.20M | 511.40M | 259.80M | 364.90M |
| Operating Cash Flow | 610.00M | 601.40M | 619.20M | 578.10M | 316.30M | 408.70M |
| Investing Cash Flow | -1.29B | -1.28B | -65.10M | -90.70M | -62.20M | -117.90M |
| Financing Cash Flow | 113.40M | 255.40M | -104.50M | -312.90M | -512.40M | -362.60M |
Acuity Brands Technical Analysis
Neutral
282.86
Price Trends
300.20
Negative
330.72
Negative
325.58
Negative
Market Momentum
-9.53
Negative
48.71
Neutral
75.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AYI, the sentiment is Neutral. The current price of 282.86 is above the 20-day moving average (MA) of 277.68, below the 50-day MA of 300.20, and below the 200-day MA of 325.58, indicating a neutral trend. The MACD of -9.53 indicates Negative momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 75.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AYI.
Acuity Brands Risk Analysis
Acuity Brands disclosed 25 risk factors in its most recent earnings report. Acuity Brands reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Acuity Brands Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.81B | 23.32 | 30.64% | 0.32% | 9.08% | 19.86% | |
77 Outperform | $6.53B | 15.10 | 16.61% | 0.67% | 6.17% | 20.86% | |
77 Outperform | $20.31B | 34.65 | 19.60% | 0.84% | 5.31% | 5.76% | |
74 Outperform | $12.45B | 53.05 | 11.51% | 0.18% | 17.18% | 235.76% | |
70 Outperform | $8.56B | 23.13 | 15.45% | 0.18% | 13.14% | -6.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $2.04B | 36.07 | -3.28% | 2.02% | -10.98% | -103.99% |
* Industrials Sector Average
AYI
Acuity Brands
282.86
8.09
2.95%
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Acuity Brands Corporate Events
Executive/Board ChangesShareholder Meetings
Acuity Brands Shareholders Reelect Board and Back Pay Policies
Positive
Jan 23, 2026
At its annual meeting of stockholders held on January 21, 2026, Acuity Inc. shareholders elected nine directors, including Neil M. Ashe and the other board nominees, to one-year terms ending at the 2027 annual meeting or until their successors are...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.