Acuity Brands Doing More Than Just Keeping The Lights On


  • Acuity has done rather well relative to sell-side expectations over the last couple of years, and is leveraging a healthy non-residential construction market and advantaged manufacturing/sourcing footprint.
  • It’s valid to question whether Acuity is “over-earning” as rivals are troubled by more serious sourcing issues and tariffs, but Acuity has additional opportunities to drive internal efficiencies.
  • It remains to be seen whether Acuity can emerge as a real player in more tech-driven markets like building sensing, controls, and automation through its ISG business.
  • If Acuity can generate long-term revenue growth in the range of 3% to 4% and FCF growth of 6% to 7%, the shares still look attractively priced.

Light bulbs hanging from cable against back yard

Mindful Media/E+ via Getty Images

There’s no better way to quiet doubters than to consistently execute well, and despite challenges from stressed supply chains and some volatility in end-market conditions, Acuity Brands (NYSE:AYI) has been executing rather well, surpassing

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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