Skip to content

AYI

NYSE
Favorable · 61/100

Acuity Inc

Industrials
Electrical Equipment

$356.11

0.8%

Updated Today 12:11 PM ET

Report Card

AYI at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 61/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 16.5% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$10.75B

P/E

22.75x

Forward P/E (est.)

19.16x

ROE

16.9%

Revenue Growth

10.5%

EPS Growth

18.8%

Profit Margin

10.3%

FCF Yield

3.8%

Debt / Equity

0.33x

ROIC

13.0%

Interest Coverage

20.21x

Current Ratio

2.05x

Dividend Yield

0.2%

Implied Growth (rev. DCF)

3.9%

Rating Score

61/100

Business Overview
Research

Acuity Inc (AYI) is a large-cap company in the Electrical Equipment industry, part of the Industrials sector of the S&P 500, with a market value around $10.75B.

In its latest reported year it generated about $4.35B in revenue and $396.60M in net profit.

Our model rates AYI Favorable (61/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AYI's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AYI trades near $356.11, above its 50-day average ($304.54) and 200-day average ($322.63). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 70 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. AYI's is $18.15 (~5.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month AYI found buyers near $279.73 (support) and sellers near $378.65 (resistance); its 52-week range is $257.04–$380.17. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

5.9%

4/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $3.51B in 2017 to $4.35B in 2025, a 2.7% compound annual growth rate. The most recent year grew a steady 10.5% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research
4/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

47.8%

Operating Margin

13.0%

Net Margin

9.1%

ROE

16.9%

Acuity Inc keeps about 10.3% of each sales dollar as net profit, with a 47.8% gross margin and 13.0% operating margin. Return on equity is 16.9% and return on invested capital about 13.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
4/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$494.30M

Net Debt

$82.40M

Net Debt / EBITDA

0.15x

Debt / Equity

0.33x

Leverage: debt-to-equity is 0.3x, and operating profit covers interest about 20.2x, with a current ratio of 2.0x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $494.30M of total debt against $411.90M of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$601.40M

Free Cash Flow

$533.00M

FCF Margin

12.3%

In the latest year Acuity Inc produced about $601.40M of operating cash flow and $533.00M of free cash flow after capital spending. That is a free-cash-flow yield of about 3.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
4/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

22.75x

P/S

2.47x

P/B

3.67x

EV / EBITDA

15.54x

AYI trades at 22.8x trailing earnings (about 19.2x on estimated forward earnings), 2.5x sales, and 3.7x book value. Reverse-engineering today's price implies the market expects roughly 3.9% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$439.94

Current price

$356.11

+24% · Below fair-value estimate

Starting FCF (latest 10-K)

$533.00M

Growth, years 1–5

10.5%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$5.46B
PV of terminal value$7.71B
Estimated equity value$13.17B
Shares outstanding30M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where AYI sits versus its Industrials sector peers in the S&P 500.

TTM P/E
22.8xCheap
Forward P/E
19.2xCheap
P/S ratio
2.5xFair
Revenue growth
10.5%Average
EPS growth
18.8%Average
Gross margin
47.8%Strong
Net margin
10.3%Average
ROE
16.9%Average

Bands show the middle half (25th–75th percentile) of the 87 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How AYI stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.

In the Industrials sector (165 S&P 500 companies), AYI ranks #22 of 165 by our overall rating. It trades at a discount versus the sector on earnings (22.8x P/E vs. 32x median) with a lower return on equity (16.9% vs. 19.7%) and faster revenue growth (10.5% vs. 5.2%).

P/E vs sector

22.8x

median 32x

ROE vs sector

16.9%

median 19.7%

Growth vs sector

10.5%

median 5.2%

Sector rank

#22

of 165 by rating

CompanyP/ERev Gr.Rating
AYIThis stock22.8x10.5%Favorable· 61
ARW14.2x20.5%Favorable· 68
FPSWeak· 18
FN42.5x29.8%Favorable· 63
CLS40.9x36.7%Favorable· 63
BE56.5%Weak· 26
AEISNot rated
AEVANot rated
Industrials median32x5.2%21/100

Valuation vs. quality map

sector medianARWFNCLSAYIP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 165 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $356.11 today · expected CAGR -3%7%

Metric20262027202820292030
Revenue$4.82B$5.35B$5.94B$6.60B$7.32B
Net income$434.13M$481.88M$534.89M$593.72M$659.03M
EPS$14.50$16.10$17.87$19.83$22.02
Share price (low)$203.03$225.36$250.15$277.67$308.21
Share price (high)$333.55$370.24$410.96$456.17$506.35
CAGR (low–high)-43% / -6%-20% / 2%-11% / 5%-6% / 6%-3% / 7%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for AYI:

  • Revenue is growing 10.5% a year, a sign of real demand.
  • Strong return on equity (16.9%) shows capital is put to work well.
  • A conservative balance sheet (debt/equity 0.3x) lowers risk.
  • Our model's overall read is Favorable (61/100).
Bear Case

The case against AYI:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Acuity Inc is a large-cap industrials business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 22.8x earnings, which our model scores Favorable (61/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

AYI — frequently asked questions

Is AYI a good stock to buy?

We don't give buy or sell advice. Our model rates Acuity Inc Favorable (61/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is AYI's rating on The Stocks School?

Acuity Inc currently scores 61/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does AYI's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Acuity Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for AYI calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this AYI analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AYI. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.