Acuity Brands (AYI) AI Stock Analysis

• Market Cap: $11.18B
• Dividend Yield: 0.19%
• Average Volume (3M): 329.32K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 1.30
• Revenue Growth: 13.14%
• EPS Growth: -6.09%
• Country: US
• Employees: 13,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 5.20
• Shares Outstanding: 30,644,833
• 10 Day Avg. Volume: 278,809
• 30 Day Avg. Volume: 329,319
• PEG Ratio: -4.19
• Price to Book (P/B): 3.70
• Price to Sales (P/S): 2.32
• P/FCF Ratio: 18.90
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 5.18
• Enterprise Value/Ebitda: 16.87
• 1Y Price Target: $401.83
• Price Target Upside: 10.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: $409.00 ▲(12.08% Upside)

Acuity Brands' strong financial performance and positive earnings call are the most significant factors driving the stock score. Technical indicators also support a bullish outlook. However, the high valuation and low dividend yield slightly temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Acuity's products and effective market strategies, supporting long-term business expansion.

Innovation in Product Offerings

Innovative product offerings enhance Acuity's competitive edge and cater to evolving market needs, driving future revenue streams.

Cash Generation

Strong cash generation supports strategic investments and financial stability, enabling sustained growth and shareholder returns.

Negative Factors

Corporate Accounts Revenue Decline

Revenue decline in corporate accounts could indicate challenges in maintaining key customer relationships, impacting future growth potential.

Impact of Tariffs on Margin

Tariff-related margin pressures may hinder profitability, necessitating strategic adjustments to maintain competitive pricing and margins.

Elevated Inventory Levels

High inventory levels can tie up capital and increase holding costs, potentially affecting liquidity and operational efficiency.

Acuity Brands Business Overview & Revenue Model

Company Description

Acuity Brands, Inc. is a leading provider of innovative lighting and building management solutions headquartered in Atlanta, Georgia. The company operates primarily in the North American market and focuses on the design and manufacturing of indoor and outdoor lighting fixtures, controls, and related products for commercial, industrial, and residential applications. Acuity Brands' product portfolio includes LED lighting systems, smart lighting controls, and energy management systems, catering to the evolving demands for energy efficiency and sustainability in the built environment.

How the Company Makes Money

Acuity Brands generates revenue primarily through the sale of lighting products, controls, and system solutions. The company's revenue model is built on both direct sales to end customers and distribution through a network of electrical wholesalers and retailers. Key revenue streams include the sale of LED lighting fixtures, smart lighting controls, and building management systems, which are increasingly in demand due to the global shift towards energy-efficient technologies. Additionally, Acuity Brands benefits from partnerships with technology firms and other stakeholders in the construction and real estate sectors, which enhance its reach and capabilities. The company's ongoing investment in research and development allows it to stay at the forefront of innovation, thus driving sales through new product introductions and enhancements that meet changing customer needs.

Acuity Brands Financial Statement Overview

Summary

Acuity Brands demonstrates solid financial performance with consistent revenue growth and strong operational efficiency. The balance sheet is stable with moderate leverage, and the company exhibits strong cash flow generation. Minor pressures on net profitability are noted, but overall financial health remains robust.

Income Statement

Acuity Brands has shown consistent revenue growth with a 4.24% increase in the latest year, indicating a positive trajectory. The gross profit margin has improved to 47.83%, reflecting efficient cost management. However, the net profit margin has slightly decreased to 9.13%, suggesting some pressure on net profitability. Overall, the company maintains strong EBIT and EBITDA margins, indicating robust operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.33, indicating a moderate level of leverage, which is manageable. The return on equity is 14.55%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial position with a solid asset base.

Cash Flow

Acuity Brands has achieved a 5.25% growth in free cash flow, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.71, indicating adequate cash flow relative to net income. The free cash flow to net income ratio is 0.89, reflecting efficient conversion of income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.35B	4.35B	3.84B	3.95B	4.01B	3.46B
Gross Profit	2.08B	2.08B	1.78B	1.71B	1.67B	1.48B
EBITDA	638.40M	655.30M	665.00M	588.50M	603.20M	520.50M
Net Income	396.60M	396.60M	422.60M	346.00M	384.00M	306.30M
Balance Sheet
Total Assets	4.76B	4.76B	3.81B	3.41B	3.48B	3.58B
Cash, Cash Equivalents and Short-Term Investments	422.50M	422.50M	845.80M	397.90M	223.20M	491.30M
Total Debt	896.80M	896.80M	573.50M	590.80M	596.10M	556.90M
Total Liabilities	2.03B	2.03B	1.44B	1.39B	1.57B	1.53B
Stockholders Equity	2.72B	2.72B	2.38B	2.02B	1.91B	2.04B
Cash Flow
Free Cash Flow	533.00M	533.00M	555.20M	511.40M	259.80M	364.90M
Operating Cash Flow	601.40M	601.40M	619.20M	578.10M	316.30M	408.70M
Investing Cash Flow	-1.28B	-1.28B	-65.10M	-90.70M	-62.20M	-117.90M
Financing Cash Flow	255.40M	255.40M	-104.50M	-312.90M	-512.40M	-362.60M

Acuity Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 364.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AYI, the sentiment is Positive. The current price of 364.93 is above the 20-day moving average (MA) of 354.27, above the 50-day MA of 340.43, and above the 200-day MA of 298.33, indicating a bullish trend. The MACD of 6.64 indicates Positive momentum. The RSI at 54.30 is Neutral, neither overbought nor oversold. The STOCH value of 59.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AYI.

Acuity Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POWL	81 Outperform	$4.21B	24.25	34.00%	0.31%	14.32%	33.76%
ENS	80 Outperform	$4.63B	14.11	19.13%	0.83%	3.73%	32.29%
NVT	79 Outperform	$16.13B	28.52	7.53%	0.83%	-4.84%	2.33%
AYI	77 Outperform	$11.18B	29.12	15.54%	0.19%	13.14%	-6.09%
AEIS	75 Outperform	$7.40B	89.19	7.04%	0.21%	8.49%	-7.65%
ATKR	73 Outperform	$2.26B	21.57	7.29%	1.97%	-12.09%	-78.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Acuity Brands Corporate Events

Acuity Brands Shines in Fiscal 2025 Earnings Call

Acuity Brands Inc. recently held its earnings call for fiscal 2025, showcasing a robust performance despite facing several challenges. The general sentiment was positive, with the company reporting growth in net sales, operating profit, and earnings per share. Acuity effectively managed costs and expanded margins while continuing to innovate and invest in growth areas such as healthcare lighting and intelligent spaces.

Acuity Inc. Reports Strong Fiscal 2025 Results

Acuity Inc. is a market-leading industrial technology company specializing in lighting and intelligent spaces solutions, with operations across North America, Europe, and Asia. The company is known for its innovative approach to solving problems in spaces and lighting, aiming to enhance customer outcomes and drive growth.