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Acuity Brands Inc (AYI)
NYSE:AYI
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Acuity Brands (AYI) AI Stock Analysis

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AYI

Acuity Brands

(NYSE:AYI)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$409.00
â–²(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 (AYI) vs. SPDR S&P 500 ETF (SPY)

Acuity Brands Business Overview & Revenue Model

Company DescriptionAcuity 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 MoneyAcuity 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Chart Insights
Data provided by:Main Street Data

Acuity Brands Earnings Call Summary

Earnings Call Date:Oct 01, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Jan 14, 2026
Earnings Call Sentiment Positive
Acuity delivered a strong performance in fiscal 2025, demonstrating growth in net sales, operating profit, and earnings per share. Despite challenges from tariff costs and corporate accounts revenue decline, the company successfully managed costs, expanded margins, and continued to innovate and invest in growth areas, such as healthcare lighting and intelligent spaces.
Q4-2025 Updates
Positive Updates
Strong Fourth Quarter Performance
Acuity achieved strong fourth quarter performance with net sales of $1.2 billion, up 17% year-over-year. Adjusted operating profit increased by 26% to $225 million, and adjusted diluted earnings per share rose by 21% to $5.20.
AIS and QSC Growth
Acuity Intelligent Spaces generated $255 million in sales, with Atrius and Distech growing approximately 13% and QSC growing approximately 15%. QSC integration is progressing well, contributing to AIS's strong performance.
Effective Cost Management and Strategic Pricing
Acuity managed to expand adjusted operating profit margin to 18.6% despite tariff challenges by moving away from higher tariff environments and strategically managing pricing.
Innovation in Product Offerings
The introduction of new healthcare lighting solutions, such as the Care Collection and Nightingale products, along with recognition from industry awards, highlights Acuity's innovation in product offerings.
Capital Allocation and Shareholder Rewards
Acuity allocated $68 million to capital expenditures, repaid $200 million in term loans, increased dividends by 13%, and repurchased approximately 436,000 shares, showcasing effective capital allocation.
Negative Updates
Corporate Accounts Revenue Decline
There was a decline in corporate accounts and direct sales network revenue, which offset some of the gains from the independent sales network.
Impact of Tariffs on Margin
The combination of higher tariff costs and corresponding price increases had a dilutive impact on margins, affecting the percentage margin expansion.
Elevated Inventory Levels
Acuity experienced elevated inventory levels due to the higher costs from tariffs and the decision to bring in additional inventory to mitigate these costs.
Company Guidance
During the Acuity Fiscal 2025 Fourth Quarter and Full Year Earnings Call, the company provided guidance for Fiscal 2026, expecting total net sales to range between $4.7 billion and $4.9 billion. The Acuity Brands Lighting (ABL) segment is anticipated to achieve low single-digit sales growth, while the Acuity Intelligent Spaces (AIS) segment is projected to grow organically in the low to mid-teens. The company also forecasts adjusted diluted earnings per share to be between $19.00 and $20.50. The guidance reflects a strategy focused on market expansion, share gains, and the introduction of new verticals, supported by strategic pricing and productivity improvements. Additionally, Acuity highlighted its efforts in supply chain optimization and strategic investments, particularly in technology and data-driven solutions, to enhance operational efficiency and support long-term growth objectives.

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
78
Positive
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
75
Positive
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
72
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.35B4.35B3.84B3.95B4.01B3.46B
Gross Profit2.08B2.08B1.78B1.71B1.67B1.48B
EBITDA638.40M655.30M665.00M588.50M603.20M520.50M
Net Income396.60M396.60M422.60M346.00M384.00M306.30M
Balance Sheet
Total Assets4.76B4.76B3.81B3.41B3.48B3.58B
Cash, Cash Equivalents and Short-Term Investments422.50M422.50M845.80M397.90M223.20M491.30M
Total Debt896.80M896.80M573.50M590.80M596.10M556.90M
Total Liabilities2.03B2.03B1.44B1.39B1.57B1.53B
Stockholders Equity2.72B2.72B2.38B2.02B1.91B2.04B
Cash Flow
Free Cash Flow533.00M533.00M555.20M511.40M259.80M364.90M
Operating Cash Flow601.40M601.40M619.20M578.10M316.30M408.70M
Investing Cash Flow-1.28B-1.28B-65.10M-90.70M-62.20M-117.90M
Financing Cash Flow255.40M255.40M-104.50M-312.90M-512.40M-362.60M

Acuity Brands Technical Analysis

Technical Analysis Sentiment
Positive
Last Price364.93
Price Trends
50DMA
340.43
Positive
100DMA
316.40
Positive
200DMA
298.33
Positive
Market Momentum
MACD
6.64
Positive
RSI
54.30
Neutral
STOCH
59.92
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 Risk Analysis

Acuity Brands disclosed 23 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$4.21B24.2534.00%0.31%14.32%33.76%
80
Outperform
$4.63B14.1119.13%0.83%3.73%32.29%
79
Outperform
$16.13B28.527.53%0.83%-4.84%2.33%
77
Outperform
$11.18B29.1215.54%0.19%13.14%-6.09%
75
Outperform
$7.40B89.197.04%0.21%8.49%-7.65%
73
Outperform
$2.26B21.577.29%1.97%-12.09%-78.18%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AYI
Acuity Brands
357.30
61.58
20.82%
AEIS
Advanced Energy
196.58
90.92
86.05%
ENS
EnerSys
119.09
20.95
21.35%
POWL
Powell Industries
348.32
94.34
37.14%
ATKR
Atkore International Group
66.11
-18.03
-21.43%
NVT
nVent Electric
96.93
24.71
34.21%

Acuity Brands Corporate Events

Acuity Brands Shines in Fiscal 2025 Earnings Call
Oct 10, 2025

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
Oct 2, 2025

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.

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.Date of analysis: Oct 09, 2025