📊 AYI Key Takeaways
Is Acuity Inc.. (de) (AYI) a Good Investment?
Acuity demonstrates solid operational fundamentals with strong revenue growth (13.1% YoY) and healthy profitability margins, supported by robust cash flow generation and a conservative capital structure. However, declining net income and EPS despite top-line growth, combined with modest return metrics (ROE 4.3%, ROA 2.6%), suggest margin pressure and capital efficiency concerns that warrant caution.
Acuity shows solid core fundamentals with double-digit revenue growth, strong gross and operating margins, and healthy free cash flow generation. The balance sheet appears sound with good liquidity, manageable leverage, and strong interest coverage, although the decline in net income and EPS despite higher sales suggests some pressure on earnings quality that warrants monitoring.
Why Buy Acuity Inc.. (de) Stock? AYI Key Strengths
- Strong revenue growth of 13.1% YoY demonstrates market demand and business expansion
- Robust free cash flow of $114.8M with 10% FCF margin indicates quality earnings and cash generation ability
- Conservative balance sheet with 0.29x debt-to-equity ratio and 12.4x interest coverage ratio provides financial flexibility
- Healthy liquidity position with 2.07x current ratio and $376.1M cash
- Solid gross margin of 48.4% reflects pricing power and operational efficiency
- Double-digit revenue growth with strong 48.4% gross margin indicates solid competitive positioning and pricing power
- Healthy balance sheet with 2.07x current ratio, 1.39x quick ratio, and low 0.29x debt-to-equity supports financial flexibility
- Free cash flow generation remains solid at $114.8M with a 10.0% FCF margin, reinforcing underlying cash earnings quality
AYI Stock Risks: Acuity Inc.. (de) Investment Risks
- Net income declining 6.2% YoY despite 13.1% revenue growth indicates margin compression and cost inflation concerns
- Diluted EPS declined 6.8% YoY, signaling profitability deterioration and potential shareholder value concerns
- Low return on equity (4.3%) and return on assets (2.6%) suggest inefficient capital deployment relative to asset base
- Operating margin of 14% is moderate, leaving limited flexibility for cost pressures or competitive challenges
- High insider trading activity (9 Form 4 filings in 90 days) warrants monitoring for potential adverse signaling
- Net income and diluted EPS declined year over year despite revenue growth, pointing to margin pressure below the gross profit line
- ROE of 4.3% and ROA of 2.6% are relatively modest, suggesting limited efficiency in converting capital into returns
- Long-term debt of $797.0M is manageable today but still meaningful if earnings weaken or interest costs rise
Key Metrics to Watch
- Operating margin trend and gross margin stability
- Net income growth reconciliation with revenue growth
- Free cash flow sustainability and capital allocation decisions
- Return on equity improvement trajectory
- Debt levels and leverage ratios given capital-intensive industry
- Operating and net margin trend versus revenue growth
- Free cash flow conversion and return on equity improvement
Acuity Inc.. (de) (AYI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.07x current ratio provides a solid financial cushion.
AYI Profit Margin, ROE & Profitability Analysis
AYI vs Utilities Sector: How Acuity Inc.. (de) Compares
How Acuity Inc.. (de) compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Acuity Inc.. (de) Stock Overvalued? AYI Valuation Analysis 2026
Based on fundamental analysis, Acuity Inc.. (de) has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Acuity Inc.. (de) Balance Sheet: AYI Debt, Cash & Liquidity
AYI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Acuity Inc.. (de)'s revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $10.76 reflects profitable operations.
AYI Revenue Growth, EPS Growth & YoY Performance
AYI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.0B | $77.5M | $2.45 |
| Q1 2026 | $951.6M | $106.7M | $3.35 |
| Q3 2025 | $968.1M | $77.5M | $3.12 |
| Q2 2025 | $905.9M | $77.5M | $2.45 |
| Q1 2025 | $934.7M | $100.6M | $3.21 |
| Q3 2024 | $968.1M | $74.9M | $3.28 |
| Q2 2024 | $905.9M | $74.9M | N/A |
| Q1 2024 | $934.7M | $74.9M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Acuity Inc.. (de) Dividends, Buybacks & Capital Allocation
AYI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Acuity Inc.. (de) (CIK: 0001144215)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AYI
What is the AI rating for AYI?
Acuity Inc.. (de) (AYI) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AYI's key strengths?
Claude: Strong revenue growth of 13.1% YoY demonstrates market demand and business expansion. Robust free cash flow of $114.8M with 10% FCF margin indicates quality earnings and cash generation ability. ChatGPT: Double-digit revenue growth with strong 48.4% gross margin indicates solid competitive positioning and pricing power. Healthy balance sheet with 2.07x current ratio, 1.39x quick ratio, and low 0.29x debt-to-equity supports financial flexibility.
What are the risks of investing in AYI?
Claude: Net income declining 6.2% YoY despite 13.1% revenue growth indicates margin compression and cost inflation concerns. Diluted EPS declined 6.8% YoY, signaling profitability deterioration and potential shareholder value concerns. ChatGPT: Net income and diluted EPS declined year over year despite revenue growth, pointing to margin pressure below the gross profit line. ROE of 4.3% and ROA of 2.6% are relatively modest, suggesting limited efficiency in converting capital into returns.
What is AYI's revenue and growth?
Acuity Inc.. (de) reported revenue of $1.1B.
Does AYI pay dividends?
Acuity Inc.. (de) pays dividends, with $5.3M distributed to shareholders in the trailing twelve months.
Where can I find AYI SEC filings?
Official SEC filings for Acuity Inc.. (de) (CIK: 0001144215) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AYI's EPS?
Acuity Inc.. (de) has a diluted EPS of $3.82.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AYI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Acuity Inc.. (de) has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AYI stock overvalued or undervalued?
Valuation metrics for AYI: ROE of 4.3% (sector avg: 10%), net margin of 10.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy AYI stock in 2026?
Our dual AI analysis gives Acuity Inc.. (de) a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AYI's free cash flow?
Acuity Inc.. (de)'s operating cash flow is $140.8M, with capital expenditures of $26.0M. FCF margin is 10.0%.
How does AYI compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 10.5% (avg: 12%), ROE 4.3% (avg: 10%), current ratio 2.07 (avg: 0.8).