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 14.19%, 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 14.19% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Acuity Brands, Inc. should be less than 10%
- 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.
14.19%
1.47
32.21%
S&P 500
13.22%
0.65
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
4.33%
EBIT Growth (5y)
8.51%
EBIT to Interest (avg)
18.36
Debt to EBITDA (avg)
0.34
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
1.41
Tax Ratio
22.04%
Dividend Payout Ratio
4.32%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
22.35%
ROE (avg)
17.67%
Valuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
5.36
EV to EBIT
25.27
EV to EBITDA
21.54
EV to Capital Employed
4.39
EV to Sales
3.59
PEG Ratio
3.95
Dividend Yield
10.90%
ROCE (Latest)
17.36%
ROE (Latest)
17.06%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
7What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.24% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 7.44 times
DIVIDEND PER SHARE(HY)
Highest at USD 7.44
NET SALES(Q)
Highest at USD 1,178.6 MM
OPERATING PROFIT(Q)
Highest at USD 206.6 MM
PRE-TAX PROFIT(Q)
Highest at USD 157.6 MM
NET PROFIT(Q)
Highest at USD 123.67 MM
-12What is not working for the Company
ROCE(HY)
Lowest at 16.6%
DEBT-EQUITY RATIO
(HY)
Highest at 27.62 %
INTEREST(Q)
Highest at USD 14.6 MM
Here's what is working for Acuity Brands, Inc.
Net Sales
Highest at USD 1,178.6 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 206.6 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 157.6 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 123.67 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Debtors Turnover Ratio
Highest at 7.44 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend per share
Highest at USD 7.44
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -2.24% (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
Depreciation
Highest at USD 34.6 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Acuity Brands, Inc.
Interest
At USD 14.6 MM has Grown at 24.79%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 14.6 MM
in the last five periods and Increased by 24.79% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 27.62 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






