Acuity Brands Inc

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AYI : NYSE : Technology
$207.86 | %
Today's Range: 206.83 - 209.98
Avg. Daily Volume: 641100.0
01/20/17 - 4:02 PM ET

Financial Analysis


ACUITY BRANDS INC's gross profit margin for the first quarter of its fiscal year 2017 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 has strong liquidity. Currently, the Quick Ratio is 1.60 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 20.57% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)851.2736.6
EBITDA ($mil)146.6128.8
EBIT ($mil)129.4114.5
Net Income ($mil)81.768.4


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)451.2560.2
Total Assets ($mil)2963.42506.3
Total Debt ($mil)356.0352.4
Equity ($mil)1730.11434.9


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin44.4545.38
EBITDA Margin17.2217.48
Operating Margin15.215.54
Sales Turnover1.151.12
Return on Assets10.269.55
Return on Equity17.5716.68
Debt Q1 FY17 Q1 FY16
Current Ratio2.222.45
Debt/Capital0.170.2
Interest Expense8.68.3
Interest Coverage15.0513.8


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)43.8243.51
Div / share0.130.13
EPS1.861.57
Book value / share39.4832.98
Institutional Own % n/a n/a
Avg Daily Volume596584.0317498.0

Valuation


BUY. ACUITY BRANDS INC's P/E ratio indicates a premium compared to an average of 24.31 for the Electrical Equipment industry and a premium compared to the S&P 500 average of 25.49. Conducting a second comparison, its price-to-book ratio of 5.45 indicates a significant premium versus the S&P 500 average of 2.84 and a premium versus the industry average of 4.19. The current price-to-sales ratio is well above the S&P 500 average and above 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 31.02 Peers 24.31   AYI 28.24 Peers 13.76

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 18.56 Peers 21.69   AYI 0.72 Peers 2.19

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

AYI is trading at a valuation on par with 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 5.45 Peers 4.19   AYI 26.22 Peers -6.10

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 2.77 Peers 2.55   AYI 21.81 Peers -8.51

Average. 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 valuation on par with 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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