Acuity Brands Inc

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AYI : NYSE : Technology
$178.33 | %
Today's Range: 178.2 - 181.0
Avg. Daily Volume: 608200.0
08/18/17 - 4:02 PM ET

Financial Analysis


ACUITY BRANDS INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. ACUITY BRANDS INC has average liquidity. Currently, the Quick Ratio is 1.31 which shows that technically this company has 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 remained virtually unchanged only decreasing by 3.31% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)891.6851.5
EBITDA ($mil)152.0149.7
EBIT ($mil)132.0131.4
Net Income ($mil)82.274.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)189.7337.0
Total Assets ($mil)2730.52783.2
Total Debt ($mil)356.7354.4
Equity ($mil)1535.21587.9


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin44.7446.61
EBITDA Margin17.0417.58
Operating Margin14.815.43
Sales Turnover1.271.12
Return on Assets11.59.62
Return on Equity20.4516.87
Debt Q3 FY17 Q3 FY16
Current Ratio2.011.98
Debt/Capital0.190.18
Interest Expense8.58.3
Interest Coverage15.5315.83


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)41.8543.59
Div / share0.130.13
EPS1.91.69
Book value / share36.6936.43
Institutional Own % n/a n/a
Avg Daily Volume659416.0876130.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 23.06 for the Electrical Equipment industry and a value on par with the S&P 500 average of 24.31. Conducting a second comparison, its price-to-book ratio of 5.04 indicates a significant premium versus the S&P 500 average of 3.03 and a premium versus the industry average of 4.28. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. After reviewing 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 25.78 Peers 23.06   AYI 28.07 Peers 17.42

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

AYI is trading at a 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 19.75 Peers 19.90   AYI 1.02 Peers 1.76

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 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 5.04 Peers 4.28   AYI 17.32 Peers 17.00

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 premium to its peers.

 

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

AYI is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AYI 2.23 Peers 2.30   AYI 11.11 Peers -0.33

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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