Acuity Brands, Inc.

  • Market Cap: Small Cap
  • Industry: Electronics & Appliances
  • ISIN: US00508Y1029
USD
359.58
2.58 (0.72%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Lumentum Holdings, Inc.
Acuity Brands, Inc.
Belden, Inc.
AMETEK, Inc.
EnerSys
SolarEdge Technologies, Inc.
Hubbell, Inc.
Eaton Corp. Plc
Generac Holdings, Inc.
Atkore, Inc.
Encore Wire Corp. (Delaware)

Why is Acuity Brands, Inc. ?

1
High Management Efficiency with a high ROE of 17.67%
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Net Sales has grown by an annual rate of 4.33% and Operating profit at 8.51% over the last 5 years
4
Flat results in May 25
  • ROCE(HY) Lowest at 16.6%
  • DEBT-EQUITY RATIO (HY) Highest at 27.62 %
  • INTEREST(Q) Highest at USD 14.6 MM
5
With ROE of 17.06%, it has a fair valuation with a 5.36 Price to Book Value
  • The stock is trading at a premium compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of 15.81%, its profits have risen by 8.5% ; the PEG ratio of the company is 4
6
Market Beating performance in long term as well as near term
  • Along with generating 15.81% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  1. Overall Portfolio exposure to Acuity Brands, Inc. should be less than 10%
  2. Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Acuity Brands, Inc. for you?

Medium Risk, High Return

Absolute
Risk Adjusted
Volatility
Acuity Brands, Inc.
17.96%
1.47
32.18%
S&P 500
22.36%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
6.68%
EBIT Growth (5y)
11.51%
EBIT to Interest (avg)
18.36
Debt to EBITDA (avg)
0.34
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
1.32
Tax Ratio
22.04%
Dividend Payout Ratio
5.27%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
22.35%
ROE (avg)
17.67%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
30
Industry P/E
Price to Book Value
4.81
EV to EBIT
21.68
EV to EBITDA
17.57
EV to Capital Employed
4.28
EV to Sales
3.06
PEG Ratio
6.11
Dividend Yield
0.12%
ROCE (Latest)
19.75%
ROE (Latest)
16.05%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 722.7 MM

INTEREST COVERAGE RATIO(Q)

Highest at 3,000

RAW MATERIAL COST(Y)

Fallen by -4.42% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 7.55

OPERATING PROFIT(Q)

Highest at USD 234 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.53 %

PRE-TAX PROFIT(Q)

Highest at USD 185.2 MM

NET PROFIT(Q)

Highest at USD 141 MM

EPS(Q)

Highest at USD 4.56

-2What is not working for the Company
CASH AND EQV(HY)

Lowest at USD 684.4 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.16 times

Here's what is working for Acuity Brands, Inc.

Operating Cash Flow
Highest at USD 722.7 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio
Highest at 3,000
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit
Highest at USD 234 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin
Highest at 19.53 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at USD 185.2 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit
Highest at USD 141 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (USD MM)

EPS
Highest at USD 4.56
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Dividend per share
Highest at USD 7.55
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost
Fallen by -4.42% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Acuity Brands, Inc.

Cash and Eqv
Lowest at USD 684.4 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio
Lowest at 5.16 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio