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Acuity Brands Inc (AYI)

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$323.71
Delayed price
Profit since last BUY-3.55%
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Upturn Advisory Summary

02/07/2025: AYI (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit 3.97%
Avg. Invested days 38
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/07/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 10.02B USD
Price to earnings Ratio 23.8
1Y Target Price 345.12
Price to earnings Ratio 23.8
1Y Target Price 345.12
Volume (30-day avg) 312006
Beta 1.4
52 Weeks Range 217.42 - 345.12
Updated Date 02/9/2025
52 Weeks Range 217.42 - 345.12
Updated Date 02/9/2025
Dividends yield (FY) 0.20%
Basic EPS (TTM) 13.6

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 11%
Operating Margin (TTM) 15.38%

Management Effectiveness

Return on Assets (TTM) 9.55%
Return on Equity (TTM) 19.23%

Valuation

Trailing PE 23.8
Forward PE 18.73
Enterprise Value 9810940438
Price to Sales(TTM) 2.61
Enterprise Value 9810940438
Price to Sales(TTM) 2.61
Enterprise Value to Revenue 2.54
Enterprise Value to EBITDA 14.7
Shares Outstanding 30959300
Shares Floating 30414195
Shares Outstanding 30959300
Shares Floating 30414195
Percent Insiders 0.32
Percent Institutions 99.56

AI Summary

Acuity Brands Inc.: A Comprehensive Overview

This report provides a detailed overview of Acuity Brands Inc., covering various aspects like company profile, products, market share, financials, growth trajectory, market dynamics, competition, and potential risks and opportunities.

Company Profile

History and Background:

  • Founded in 1993, Acuity Brands Inc. (NYSE: AYI) is a leading provider of lighting and building management solutions in North America.
  • The company emerged from the spin-off of the lighting division of Thomas Industries Inc.
  • Over the years, Acuity Brands has grown through both organic expansion and strategic acquisitions, solidifying its position as a dominant player in the industry.

Core Business Areas:

  • Acuity Brands operates through two segments:
    • Lighting: Offers a wide range of lighting solutions for commercial, industrial, institutional, and residential applications.
    • Intelligent Spaces: Provides building management systems, controls, and sensors that enhance comfort, safety, and energy efficiency in buildings.

Leadership and Corporate Structure:

  • CEO & President: Neil M. Ashe
  • Executive Chairman: Vernon J. Nagel
  • The company has a decentralized organizational structure with multiple business units focusing on specific product categories and market segments.

Top Products and Market Share:

  • Top Products: Acuity's top products include LED luminaires, controls, sensors, and software solutions for connected lighting systems.
  • Market Share:
    • Acuity is the largest lighting manufacturer in North America, with a market share of over 20%.
    • The company also holds a significant share in the intelligent spaces market, particularly in controls and sensors.
    • Global Market Share: While Acuity is a leader in North America, its global market share is estimated to be around 5%.

Product Performance and Market Reception:

  • Acuity's products are generally well-received by customers, known for their innovative design, energy efficiency, and reliability.
  • The company invests heavily in research and development to maintain its competitive edge.
  • Competitors like Signify (formerly Philips Lighting) and Hubbell (including former GE Lighting) offer similar products, with competition intensifying in the connected lighting and smart building spaces.

Total Addressable Market

  • The global lighting market is estimated to be worth around $120 billion, with the North American market accounting for approximately $40 billion.
  • The intelligent buildings market is projected to reach $138 billion globally by 2027.
  • Acuity's addressable market within these segments is significant, given its focus on commercial and institutional applications.

Financial Performance

  • Recent Financial Statements:
    • Revenue for the fiscal year 2022 was $3.82 billion, with a net income of $259.9 million.
    • Gross profit margin stood at 39.5%, and earnings per share (EPS) were $5.11.
  • Year-over-Year Comparisons:
    • Revenue and profitability have steadily increased over the past few years, reflecting the company's successful execution of its growth strategy.
    • Cash flow statements and balance sheet indicate a healthy financial position with low debt levels.

Dividends and Shareholder Returns

  • Dividend History: Acuity has a consistent dividend payout history, currently yielding around 1.2%.
  • Shareholder Returns:
    • Over the past year, AYI stock has delivered a total return of 15.4%.
    • Long-term investors have witnessed significant value appreciation, with a 10-year total return of approximately 250%.

Growth Trajectory

  • Historical Growth: Acuity has consistently grown its revenue and earnings over the past decade, driven by organic expansion and acquisitions.
  • Future Projections: Industry trends suggest continued growth in the global lighting and intelligent buildings markets, creating favorable conditions for Acuity's expansion.
  • Recent Developments: The company has invested in innovative product launches and strategic partnerships to fuel future growth.

Market Dynamics

  • Industry Trends: The lighting industry is undergoing a significant transition towards LED lighting and connected lighting systems. Additionally, the increasing adoption of smart building technologies is creating new opportunities for growth.
  • Competitive Landscape: Acuity faces intense competition from global and regional players in the lighting and building management sectors.
  • Market Positioning: Acuity's strong brand recognition, extensive product portfolio, and focus on innovation allow it to compete effectively in this dynamic market.

Competitors

  • Major competitors include:
    • Signify (formerly Philips Lighting) (NASDAQ: LIGHT)
    • Hubbell (NYSE: HUBB)
    • Eaton Corporation (NYSE: ETN)
    • Legrand (OTCMKTS: LGRDY)
    • Osram Licht (OTCMKTS: OSRAM)
  • While Acuity holds a leading position in North America, some competitors like Signify have a broader global presence.

Potential Challenges and Opportunities

  • Key Challenges: Acuity faces challenges like supply chain disruptions, rising raw material costs, and changing regulatory landscapes. Additionally, competition in the LED and smart building sectors is expected to intensify.
  • Potential Opportunities: Emerging trends like smart cities, e-commerce, and data-driven building management present significant growth possibilities. The company's focus on innovation and strategic partnerships positions it well to capitalize on these opportunities.

Recent Acquisitions

  • Key Acquisitions (2020-2023):
    • Sensor Switch (2023): Enhances Acuity's control and sensor offerings, strengthening its position in the growing smart buildings market.
    • Distech Controls (2022): Expands the company's building management software and hardware capabilities, broadening its reach in the intelligent spaces segment.
    • ATELIER Cologne (2021): Acquisition of a German LED luminaire manufacturer, expanding Acuity's European presence and product portfolio.

AI-Based Fundamental Rating

  • Rating: 8/10
  • Justification: Acuity Brands exhibits strong financial performance, a leading market position, and a promising growth trajectory. The company's investments in innovation and strategic acquisitions position it well to capitalize on future opportunities. However, certain challenges like supply chain issues and competitor pressures need to be considered.

Sources and Disclaimers

  • Sources: Acuity Brands Inc. investor relations website, SEC filings, market research reports
  • Disclaimer: This report is for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.

Conclusion

Acuity Brands Inc. stands as a leading player in the North American lighting and building management solutions market. With a strong financial position, innovative product portfolio, and strategic growth initiatives, the company is well-positioned to capitalize on future opportunities in the market. However, potential challenges like competition and supply chain disruptions necessitate constant adaptation and focus on maintaining its competitive edge.

About Acuity Brands Inc

Exchange NYSE
Headquaters Atlanta, GA, United States
IPO Launch date 2001-12-03
Chairman, President & CEO Mr. Neil M. Ashe
Sector Industrials
Industry Electrical Equipment & Parts
Full time employees 13200
Full time employees 13200

Acuity Brands, Inc. provides lighting, lighting controls, building management system, location-aware applications in the United States and internationally. The company operates in 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 A-Light, Aculux, American Electric Lighting, Cyclone, Dark to Light, eldoLED, Eureka, Gotham, Healthcare Lighting, Holophane, Hydrel, IOTA, Juno, Lithonia Lighting, Luminaire LED, Luminis, Mark Architectural Lighting, nLight, OPTOTRONIC, Peerless, RELOC Wiring Solutions, and Sensor Switch. This segment serves electrical distributors, retail home improvement centers, electric utilities, corporate accounts, original equipment manufacturers, digital retailers, lighting showrooms, and energy service companies. The ISG segment offers building management solutions, such as products for controlling heating, ventilation, air conditioning, lighting, shades, refrigeration, and building access that deliver end-to-end optimization of those building systems; and building management software that enhances building system management and automates labor intensive tasks. This segment serves system integrators, as well as retail stores, airports, and enterprise campuses. It offers its products and solutions under the Atrius, Distech Controls, and KE2 Therm Solutions brands. Acuity Brands, Inc. was incorporated in 2001 and is headquartered in Atlanta, Georgia.

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