Fundamental analysis AYI (Acuity Inc)

Updated on 08/04/2026

Method and analysis by Lubin Danilo, founder of Lubin Investment. Score computed automatically, with no human opinion.

We analyzed Acuity stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 9/10, meaning high quality, and a P/FCF valuation multiple of 18.3×.

This is the setup we look for: Acuity passes a large majority of our quality criteria while trading at a low free cash flow multiple. That is exactly the "quality company at the right price" profile, the one worth a closer look.

Sector: Electrical Equipment & Parts. Listing: US. Current price: 359.58 USD.

Lubin scoring methodology

Acuity Inc (AYI)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The thresholds come from the financial literature, not from our preferences: see the valuation work of Aswath Damodaran (NYU Stern) and the SEC investor education resources (investor.gov).

Acuity's accounts are public: you can check every figure in its official 10-K filings with the SEC (EDGAR).

The 10 quantitative criteria analyzed

1. Profitable: net margin > 5%
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Growing revenue per employee: revenue and revenue per employee both grow ≥ 10%/year over 5 years; partial when only one growth driver reaches its tier (fallback: free cash flow margin > 10% when employee history is unavailable)
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Its price against peers

Against the 5 other Electrical Equipment & Parts stocks we have scored, Acuity trades at 18.3× its free cash flow, versus a median of 41.1× for that basket. On price alone, Acuity is therefore cheaper than its peers. That says nothing about its quality: at Lubin Investment, quality and price are judged separately, and a low multiple is only a bargain if the quality holds up.

Frequently asked questions

Is Acuity a quality stock?

Acuity gets a quality score of 9/10 (high quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Acuity's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Acuity's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Acuity stock is 18.3×. At Lubin Investment, valuation is judged separately from quality.

Where to see Acuity's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/AYI?lng=en.

Articles about Acuity

• Acuity Brands (AYI): Q3 FY2026 results, our verdict (2026-06-28)

Other stocks in the Electrical Equipment & Parts sector

• Vertiv Holdings (VRT), score 9/10, P/FCF 43.6×
• Powell Industries (POWL), score 9/10, P/FCF 41.1×
• HBL Engineering (HBLENGINE.NS), score 9/10, P/FCF 33.8×
• Centiel N (CNTL.SW), score 9/10, P/FCF 89.5×

Go further

👉 See the full interactive analysis of AYI

Other resources : All stocks in the Electrical Equipment & Parts sector.