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Fundamentals snapshot

Acuity Inc.

AYI · NYQ · Industrials · Electrical Equipment & Parts

Current price

$296.27

52-week range

$257.04 - $380.17

Market cap

$8.87B

One-glance verdict

Undervalued

$373.09 our estimate vs market $296.27

Wall Street consensus: $375.17 (0.6% higher than our fair-value estimate)

Balance sheet

Healthy

13.97x Strong cushion

Net debt $61.10M. Interest coverage shows how many times profit covers the interest bill.

What this company does

Acuity Inc.

Acuity Inc. makes all sorts of things for buildings, like lights, smart systems that control heating and cooling, and even audio and video setups. Most of their money comes from selling these lighting and building control products to businesses like electrical distributors and large companies. This is important because it means they are a key supplier for making commercial spaces functional and comfortable.

Price history

How the share price has moved

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Earnings history

Last 8 quarters — what happened

Click any quarter to read the call summary and what the numbers say.

Free cash flow by quarter (oldest to newest)
FY2024 Q4 $151.10M FY2025 Q1 $113.30M FY2025 Q2 $49.70M FY2025 Q3 $192.30M FY2025 Q4 $177.70M FY2026 Q1 $114.80M FY2026 Q2 $73.30M FY2026 Q3 $273.60M
Revenue $1.20B
Net income $141.00M
Diluted EPS 4.56
Operating cash flow $290.30M
Free cash flow $273.60M
Revenue $1.06B
Net income $96.80M
Diluted EPS 3.09
Operating cash flow $89.10M
Free cash flow $73.30M
Revenue $1.14B
Net income $120.50M
Diluted EPS 3.82
Operating cash flow $140.80M
Free cash flow $114.80M
Revenue $1.21B
Net income $114.00M
Diluted EPS 3.61
Operating cash flow $202.50M
Free cash flow $177.70M
Revenue $1.18B
Net income $98.40M
Diluted EPS 3.12
Operating cash flow $207.30M
Free cash flow $192.30M
Revenue $1.01B
Net income $77.50M
Diluted EPS 2.45
Operating cash flow $59.40M
Free cash flow $49.70M
Revenue $951.60M
Net income $106.70M
Diluted EPS 3.35
Operating cash flow $132.20M
Free cash flow $113.30M
Revenue $1.03B
Net income $118.90M
Diluted EPS 3.77
Operating cash flow $174.10M
Free cash flow $151.10M

Is it cheap or expensive?

Fair value $373.09 vs current price $296.27

Wall Street consensus is the average analyst price target: $375.17 (0.6% higher than our fair-value estimate).

Our most-likely fair value is $373.09 a share — about 25.9% above today's price of $296.27, so the stock currently looks cheap (undervalued).

undervalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 8.0% · Discount 9.5% · Terminal 3.0%

$373.09

Bear

Growth 4.0% · Discount 9.5% · Terminal 3.0%

$297.65

Bull

Growth 15.0% · Discount 9.5% · Terminal 3.0%

$549.55

Is it drowning in debt?

Healthy

Net debt $61.1M. Interest coverage 14.0x.

Net debt $61.10M
Interest coverage 13.97x

Acuity Inc. is healthier than 0 of 1 peers on balance-sheet leverage.

Healthy
Worse cushion Baseline Better cushion
AYI BASELINE Acuity Inc.

Total debt $697.40M Interest coverage 13.97x This is the baseline the peer rows are being compared against.

13.97x

What you should know

The case for and against AYI

3 Rewards 1 Risk

Rewards

  • Revenue grew 6.0% last year.
  • Free cash flow was positive in 10/10 years.
  • Dividend yield is 0.3% with 25-year payout history.

Risks

  • Net debt grew 56.0% over 3 years.

The numbers

All the key metrics, grouped by purpose

Tap any ? icon to learn what it means.

Valuation

How expensive the stock looks

P/E (TTM)
17.26x
Forward P/E
12.72x
P/B
2.98x
P/S
1.91x
EV/EBITDA
10.61x
PEG ratio
1.60x

Profitability

How much profit each dollar creates

Gross margin
49.5%
Operating margin
16.1%
Net margin
11.4%
ROE
18.6%
ROA
8.9%

Health

Liquidity and balance-sheet strength

Debt / equity
0.23x
Current ratio
1.70x
Quick ratio
1.16x
Total debt
$697.40M
Total cash
$636.30M

Growth

How the business has been compounding

Revenue TTM
$4.61B
Revenue 5Y CAGR
5.9%
EPS TTM
17.17
EPS 5Y CAGR
4.2%

Cash flow

How much cash the business throws off

Operating CF TTM
$722.70M
Free CF TTM
$533.00M
FCF margin
11.6%

Dividend

Shareholder payout

Yield
0.3%
Payout ratio
4.9%
Last ex-div date
2026-10-16