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Acuity Brands
(NYSE:AYI)
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Rating:73Outperform
Price Target:
$345.00
▲(1.07% Upside)
Action:Reiterated
Date:10/01/26
AYI’s score is driven primarily by strong financial performance (solid profitability, robust free cash flow, and improving leverage) and a constructive earnings outlook with shareholder-friendly capital returns. The main offset is weak technical momentum (below key moving averages with negative MACD), while valuation appears broadly fair with a low dividend yield providing limited downside support.
Positive Factors
Strong cash generation
A large operating cash flow base and strong conversion of earnings into free cash flow give Acuity internal funding capacity. This supports continued investment in intelligent spaces, product development, debt repayment and shareholder returns while reducing reliance on external financing.
Negative Factors
ABL market weakness
A stagnant or declining core ABL market could limit volume growth across Acuity’s largest business and make reported expansion more dependent on share gains, new verticals and corporate accounts. This raises execution requirements and may constrain near-term operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
A large operating cash flow base and strong conversion of earnings into free cash flow give Acuity internal funding capacity. This supports continued investment in intelligent spaces, product development, debt repayment and shareholder returns while reducing reliance on external financing.
Read all positive factors
Acuity Brands Key Performance Indicators (KPIs)
Any
Revenue by Segment
Reveals how different parts of the business contribute to total sales, highlighting strengths and potential growth areas within the company’s operations.
Reveals how different parts of the business contribute to total sales, highlighting strengths and potential growth areas within the company’s operations.
Data provided by:
The Fly
The FlyAcuity Brands (AYI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.24B
Dividend Yield0.25%
Average Volume (3M)258.46K
Price to Earnings (P/E)20.1
Beta (1Y)1.13
Revenue Growth10.50%
EPS Growth18.92%
CountryUS
Employees13,800
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)17.51
Shares Outstanding29,935,547
10 Day Avg. Volume417,244
30 Day Avg. Volume258,460
Financial Highlights & Ratios
PEG Ratio-4.19
Price to Book (P/B)3.70
Price to Sales (P/S)2.32
P/FCF Ratio18.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$385.00Price Target Upside12.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)21.54
Revenue Forecast (FY)$4.84B
Acuity Brands Business Overview & Revenue Model
Company Description
Acuity Brands, Inc. operates as a global provider of advanced lighting and building management solutions, serving markets both within North America and internationally. The company's operations are divided into two principal segments: Acuity Brand...
How the Company Makes Money
Acuity Brands makes money primarily by selling lighting and building technology products and related solutions to customers across commercial and institutional construction and renovation markets. Its core revenue stream comes from product sales o...
Acuity Brands Earnings Call Summary
Earnings Call Date:Oct 01, 2026
(Q4-2026)
| Next Earnings Date:Jan 13, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Acuity reported higher consolidated sales, adjusted operating profit, margins, EPS and cash flow; AIS delivered particularly strong growth and profitability; the company reduced debt, repaid the QSC financing, increased its dividend and repurchased shares. Management also highlighted share gains, product innovation, AI initiatives, data-center opportunities and fiscal 2027 sales and EPS growth expectations. The principal challenges were ABL's slight sales and operating-profit declines, a flat-to-down low-single-digit market outlook for ABL, input-cost inflation and an expected couple of hundred basis points of gross-margin impact from memory costs in AIS.Positive Updates
Fourth-Quarter Sales and Profit Growth
Total Acuity net sales were $1.2 billion, up $35 million or 3% year over year. Adjusted gross profit margin increased 130 basis points to 50.2%, adjusted operating profit rose $8 million or 3% to $233 million, and adjusted operating profit margin increased 10 basis points to 18.7%.
Negative Updates
ABL Fourth-Quarter Sales Decline
ABL sales were $959 million, down $3 million or less than 1% compared with the fourth quarter of fiscal 2025. Management said the comparison was affected by an elevated prior-year backlog resulting from orders accelerated ahead of price increases.
Read all updates
Q4-2026 Updates
Positive
Negative
Fourth-Quarter Sales and Profit Growth
Total Acuity net sales were $1.2 billion, up $35 million or 3% year over year. Adjusted gross profit margin increased 130 basis points to 50.2%, adjusted operating profit rose $8 million or 3% to $233 million, and adjusted operating profit margin increased 10 basis points to 18.7%.
Read all positive updates
Company Guidance
For full year fiscal 2027, Acuity expects net sales within the range of $4.7 billion and $4.9 billion for total AYI and adjusted diluted earnings per share within the range of $20.50 to $22, with ABL delivering flat to low single-digit sales growth and AIS generating low to mid-teens sales growth; ABL expects to add around 50 to 100 basis points of adjusted operating profit margin per year, while AIS memory costs are expected to have about a couple of hundred basis points of gross margin impact over the course of the year, with operating margins flat to slightly up, beginning to impact late in the first quarter and into fiscal second quarter, and ABL expects the market to be flat to down low singles.Acuity Brands Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.64B | 4.35B | 3.84B | 3.95B | 4.01B | 3.46B |
| Gross Profit | 2.35B | 2.08B | 1.78B | 1.71B | 1.67B | 1.48B |
| EBITDA | 830.80M | 655.30M | 665.00M | 588.50M | 603.20M | 520.50M |
| Net Income | 531.30M | 396.60M | 422.60M | 346.00M | 384.00M | 306.30M |
Balance Sheet | ||||||
| Total Assets | 4.87B | 4.76B | 3.81B | 3.41B | 3.48B | 3.58B |
| Cash, Cash Equivalents and Short-Term Investments | 636.30M | 422.50M | 845.80M | 397.90M | 223.20M | 491.30M |
| Total Debt | 697.40M | 1.00B | 573.50M | 590.80M | 596.10M | 556.90M |
| Total Liabilities | 1.90B | 2.03B | 1.44B | 1.39B | 1.57B | 1.53B |
| Stockholders Equity | 2.97B | 2.72B | 2.38B | 2.02B | 1.91B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | 747.90M | 533.00M | 555.20M | 511.40M | 259.80M | 364.90M |
| Operating Cash Flow | 825.60M | 601.40M | 619.20M | 578.10M | 316.30M | 408.70M |
| Investing Cash Flow | -79.20M | -1.28B | -65.10M | -90.70M | -62.20M | -117.90M |
| Financing Cash Flow | -536.50M | 255.40M | -104.50M | -312.90M | -512.40M | -362.60M |
Acuity Brands Technical Analysis
Negative
341.35
Price Trends
331.37
Negative
322.47
Negative
314.48
Negative
Market Momentum
-6.66
Negative
44.16
Neutral
51.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AYI, the sentiment is Negative. The current price of 341.35 is above the 20-day moving average (MA) of 312.98, above the 50-day MA of 331.37, and above the 200-day MA of 314.48, indicating a bearish trend. The MACD of -6.66 indicates Negative momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 51.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AYI.
Acuity Brands Risk Analysis
Acuity Brands disclosed 25 risk factors in its most recent earnings report. Acuity Brands reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Acuity Brands Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $24.25B | 26.76 | 23.65% | 1.25% | 10.61% | 9.52% | |
76 Outperform | $168.28B | 43.58 | 19.56% | 1.01% | 15.53% | -1.21% | |
73 Outperform | $9.24B | 20.11 | 16.85% | 0.25% | 10.50% | 18.92% | |
73 Outperform | $26.17B | 43.46 | 15.76% | 0.51% | 46.19% | 3.13% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $124.42M | -876.44 | 0.27% | ― | 16.48% | 99.12% | |
52 Neutral | $776.15M | 29.93 | 7.51% | 0.96% | 20.23% | -15.15% |
* Industrials Sector Average
AYI
Acuity Brands
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Acuity Brands Corporate Events
Business Operations and StrategyExecutive/Board Changes
Acuity Brands Adds AI-Focused Independent Director to Board
Positive
Sep 29, 2026
On September 24, 2026, Acuity Inc.’s Board of Directors expanded from nine to ten members and elected ServiceNow Vice Chairman Nick Tzitzon as an independent director, with his appointment announced publicly on September 29, 2026. Tzitzon, w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.