Acuity Inc.
AYI
$0.00
-7.52%
Acuity Inc. is a leading industrial technology company specializing in lighting, lighting controls, and intelligent building solutions. It is defined by its dual-segment strategy, focusing on commercial lighting and building management systems to create smarter, more efficient environments.…
AYI
Acuity Inc.
$0.00
Investment Opinion: Should I buy AYI Today?
Based on a synthesis of the data, the objective assessment is a Hold. The company's fundamentals are sound, with strong growth and profitability, and the forward P/E of 12.98 appears reasonable. However, the severe technical breakdown, high volatility, and negative momentum warrant caution. Investors should wait for evidence of a price stabilization or a reversal in the downtrend before considering new positions. The analyst consensus, with a mix of Buy and Hold ratings, supports this cautious stance.
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AYI 12-Month Price Forecast
The analysis is neutral due to the conflicting signals. The compelling fundamental story is overshadowed by clear technical damage and high volatility. The base case is for consolidation, but the risk of further decline is material.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Acuity Inc.'s 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
6 analysts
Implied Upside
—
vs. current price
Analyst Count
6
covering this stock
Price Range
$0 - $0
Analyst target range
Wall Street analyst coverage for AYI consists of 6 analysts. The consensus ratings, based on recent actions from firms like Wells Fargo and Morgan Stanley (Overweight), TD Cowen (Buy), and Oppenheimer (Outperform), alongside Neutral ratings from Baird and Goldman Sachs, indicate a generally positive but cautious outlook. Specific consensus target price data is not available in the provided inputs.
Bulls vs Bears: AYI Investment Factors
AYI presents a dichotomy of strong fundamental performance against a backdrop of severe technical weakness. The company is growing revenue profitably and has a solid balance sheet, but the stock has been in a pronounced downtrend, suggesting market concerns not fully captured in recent financials.
Bullish
- Strong Revenue Growth: Q1 2026 revenue grew 20.2% YoY, indicating robust demand.
- Healthy Profitability Margins: Net margin of 10.5% and operating margin of 14.0% show efficient operations.
- Solid Financial Position: Low debt-to-equity of 0.37 and strong free cash flow of $114.8M.
- Attractive Forward Valuation: Forward P/E of 12.98 suggests earnings growth is not fully priced in.
Bearish
- Severe Technical Downtrend: Stock down 21.3% over 6 months, underperforming the market significantly.
- High Volatility: Beta of 1.428 indicates greater sensitivity to market swings.
- Elevated Trailing P/E: Trailing P/E of 25.40 is high relative to the forward multiple.
- Negative PEG Ratio: PEG of -4.19 signals growth expectations may be mispriced or negative.
AYI Technical Analysis
The stock's overall trend over the past six months has been sharply negative, with the price declining from around $356 in early October 2025 to $280.22 as of March 31, 2026, representing a 6-month change of -21.32%. This underperformance is significantly worse than the broader market, as indicated by a 6-month relative strength of -18.50. Short-term performance shows continued weakness, with the stock down 7.09% over the past month and 22.17% over the past three months. This decline accelerated sharply in early January 2026, with the price falling from over $370 to below $310 in a matter of days. The current price of $280.22 sits near the lower end of its 52-week range of $216.81 to $380.17, approximately 73.7% above the low and 26.3% below the high. The stock's beta of 1.428 indicates it has been more volatile than the market, which has contributed to its steeper decline during the recent downturn.
Beta
1.43
1.43x market volatility
Max Drawdown
-31.6%
Largest decline past year
52-Week Range
$217-$380
Price range past year
Annual Return
-0.4%
Cumulative gain past year
| Period | AYI Return | S&P 500 |
|---|---|---|
| 1m | -5.6% | -4.3% |
| 3m | -28.9% | -4.0% |
| 6m | -24.8% | -2.0% |
| 1y | -0.4% | +22.2% |
| ytd | -28.9% | -3.8% |
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AYI Fundamental Analysis
Revenue for the latest quarter (Q1 2026) was $1.14 billion, representing a strong 20.2% year-over-year growth compared to the same quarter last year. Profitability metrics are healthy, with a net margin of 10.5% and an operating margin of 14.0% for the quarter, supported by a gross margin of 48.4%. The company maintains a solid financial position with a debt-to-equity ratio of 0.37, indicating moderate leverage. Cash flow generation is robust, with free cash flow of $114.8 million generated in the latest quarter and trailing twelve-month free cash flow of $534.5 million, providing ample liquidity for operations and shareholder returns. Operational efficiency is demonstrated by a return on equity (ROE) of 14.55% and a return on assets (ROA) of 8.88%. The current ratio of 1.95 indicates sufficient short-term liquidity to cover obligations.
Quarterly Revenue
$1.1B
2025-11
Revenue YoY Growth
+0.20%
YoY Comparison
Gross Margin
+0.48%
Latest Quarter
Free Cash Flow
$534500000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is AYI Overvalued?
Given the company's positive net income, the primary valuation metric is the trailing P/E ratio, which stands at 25.40 based on the latest quarterly EPS. The forward P/E is lower at 12.98, suggesting expectations for higher future earnings. The price-to-sales (P/S) ratio is 2.32, and the enterprise value-to-sales (EV/Sales) is 2.00. Peer comparison data for industry averages is not available in the provided inputs. The valuation appears to reflect a mix of the company's strong profitability and growth against the backdrop of recent significant stock price depreciation.
PE
25.4x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 11x~30x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.3x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk is the stock's high volatility (beta 1.428) combined with its sharp technical decline, which may indicate underlying market concerns about future growth or sector headwinds not yet apparent in financial statements. The negative PEG ratio is a significant red flag, potentially pointing to inflated growth expectations or an earnings deceleration. Furthermore, the stock's price sits 26.3% below its 52-week high, and a break below recent lows near $257 could trigger further selling. While the balance sheet is strong, the industrial sector is cyclical, and any macroeconomic slowdown could impact the demand for lighting and building solutions. The lack of recent news suggests the sell-off may be driven by broader market rotations or institutional repositioning rather than company-specific events.