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
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.
1.4%
1.47
32.18%
S&P 500
14.9%
0.70
20.15%
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%
Valuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
Price to Book Value
4.71
EV to EBIT
21.28
EV to EBITDA
17.24
EV to Capital Employed
4.20
EV to Sales
3.00
PEG Ratio
5.99
Dividend Yield
0.13%
ROCE (Latest)
19.75%
ROE (Latest)
16.05%
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
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 610 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 8.25 times
RAW MATERIAL COST(Y)
Fallen by -0.18% (YoY
DIVIDEND PER SHARE(HY)
Highest at USD 8.25
EPS(Q)
Highest at USD 3.82
-8What is not working for the Company
INTEREST(HY)
At USD 20.6 MM has Grown at 68.85%
ROCE(HY)
Lowest at 15.61%
Here's what is working for Acuity Brands, Inc.
Debtors Turnover Ratio
Highest at 8.25 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Operating Cash Flow
Highest at USD 610 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
EPS
Highest at USD 3.82
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Dividend per share
Highest at USD 8.25
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -0.18% (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.
Interest
At USD 20.6 MM has Grown at 68.85%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)






