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Acuity Brands Inc
AYI : NYSE : Technology
$158.48 | %
Today's Range: 158.48 - 160.77
Avg. Daily Volume: 334,100
02/27/15 - 4:02 PM ET

Financial Analysis


ACUITY BRANDS INC's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ACUITY BRANDS INC is extremely liquid. Currently, the Quick Ratio is 2.10 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 16.45% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)647.4574.7
EBITDA ($mil)108.083.0
EBIT ($mil)96.772.4
Net Income ($mil)51.144.5


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)583.0398.1
Total Assets ($mil)2206.11966.2
Total Debt ($mil)353.6353.6
Equity ($mil)1210.71039.6


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin43.9143.1
EBITDA Margin16.6814.44
Operating Margin14.9412.6
Sales Turnover1.121.11
Return on Assets8.267.41
Return on Equity15.0614.02
Debt Q1 FY15 Q1 FY14
Current Ratio2.72.47
Debt/Capital0.230.25
Interest Expense8.18.1
Interest Coverage11.948.94


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)43.1142.68
Div / share0.130.13
EPS1.171.03
Book value / share28.0924.36
Institutional Own % n/a n/a
Avg Daily Volume326012.0361867.0

Valuation


BUY. ACUITY BRANDS INC's P/E ratio indicates a significant premium compared to an average of 24.04 for the Electrical Equipment industry and a significant premium compared to the S&P 500 average of 19.80. For additional comparison, its price-to-book ratio of 5.71 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 3.77. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ACUITY BRANDS INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AYI 38.25 Peers 24.04   AYI 29.11 Peers 16.95

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AYI is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AYI is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AYI 24.39 Peers 18.62   AYI 1.24 Peers 5.00

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

AYI is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AYI trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AYI 5.71 Peers 3.77   AYI 24.70 Peers 15.93

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AYI is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AYI is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AYI 2.80 Peers 2.28   AYI 12.98 Peers 4.77

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AYI is trading at a premium to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AYI has a sales growth rate that significantly exceeds its peers.

 

 

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