Electric Lighting & Wiring Equipment
Acuity Brands, Inc. provides lighting and building management solutions in North America and internationally. The company operates through two segments, Acuity Brands Lighting and Lighting Controls (ABL); and the Intelligent Spaces Group (ISG). The ABL segment provides commercial, architectural, and specialty lighting solutions, as well as lighting controls and components for various indoor and outdoor applications under the Lithonia Lighting, Holophane, Peerless, Gotham, Mark Architectural Lighting, Winona Lighting, Juno, Indy, Aculux, Healthcare Lighting, Hydrel, American Electric Lighting, Sunoptics, eldoLED, nLight, Sensor Switch, IOTA, A-Light, Cyclone, Eureka, Lumniaire LED, Luminis, Dark to Light, RELOC Wiring Solutions, and OPTOTRONIC brands. This segment serves electrical distributors, retail home improvement centers, electric utilities, national accounts, original equipment manufacturers, digital retailers, lighting showrooms, and energy service companies. The ISG segment offers building management platform and location-aware applications under the Distech Controls and Atrius brands. This segment serves system integrators, as well as retail stores, airports, and enterprise campuses. Acuity Brands, Inc. was incorporated in 2001 and is headquartered in Atlanta, Georgia.
Sector
Discounted Cash Flow Valuation of Acuity Brands Inc
Growth
%
%
Discount
%
%
Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $504.2M | $541M | $579.1M | $618.3M | $658.7M | $700M | $742.2M | $785M | $828.2M | $871.7M | $915.3M | $9.153B |
DCF | $470.4M | $437.8M | $406.6M | $376.6M | $348M | $320.9M | $295.1M | $270.7M | $247.8M | $226.3M | $2.263B | |
Value | $5.663B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 08-2015 | 08-2016 | 08-2017 | 08-2018 | 08-2019 | 08-2020 | 08-2021 | 08-2022 | 08-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 8.2% | 8.8% | 9.2% | 9.5% | 9% | 7.5% | 8.9% | 9.6% | 8.8% | 9.8% |
ROA | 15% | 16% | 18% | 15% | 15% | 10% | 12% | 15% | 14% | 14% |
ROE | 16% | 17% | 19% | 20% | 17% | 12% | 15% | 20% | 17% | 18% |
The average Net Margin over the past 5 years is +8.86%.
The trend of Net Margin over the past 5 years is -0.02%.
The average ROA over the past 5 years is +13.44%.
The trend of ROA over the past 5 years is -0.16%.
The average ROE over the past 5 years is +16.91%.
The trend of ROE over the past 5 years is -0.12%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 08-2015 | 08-2016 | 08-2017 | 08-2018 | 08-2019 | 08-2020 | 08-2021 | 08-2022 | 08-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 1.52 | 1.36 | 1.44 | 1.15 | 0.83 | 0.95 | 1.35 | 1.97 | 0.97 | 0.98 |
Debt Equity | 0.26 | 0.21 | 0.21 | 0.21 | 0.19 | 0.20 | 0.24 | 0.27 | 0.25 | 0.23 |
MIN | ||||||||||
Graham Stability | - | - | 100% | 100% | 100% | 74% | 99% | 100% | 100% | 74% |
The Debt/FCF trailing twelve month is 0.98.
The trend of Debt/FCF over the past 5 years is 0.08.
Graham’s Stability measure stands at 0.74.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 08-2016 | 08-2018 | 08-2020 | 08-2022 | Trend |
---|---|---|---|---|---|
Revenue | 2.6% | 1.4% | 5.9% | -1.3% | -1.6% |
Net Income | 2.5% | -0.21% | 12% | -9.9% | -2.9% |
Stockholders Equity | 2.8% | 3.3% | -1.8% | 5.4% | -2.2% |
FCF | 10% | 11% | 4.4% | 97% | 2.4% |
The Revenue CAGR over the past 5 years is +1.44%.
The trend of Revenue growth rate over the past 5 years is -1.58%.
The Earnings CAGR over the past 5 years is -0.21%.
The trend of Earnings growth rate over the past 5 years is -2.89%.
The Equity CAGR over the past 5 years is +3.26%.
The trend of Equity growth rate over the past 5 years is -2.2%.
The FCF CAGR over the past 5 years is +10.56%.
The trend of FCF growth rate over the past 5 years is +2.37%.