Acuity Brands: High-Quality Company With Favorable Long-Term Prospects And ESG Focus


  • Acuity has a history of delivering consistently high returns on invested capital (ROIC) above 30%, indicating efficient use of capital to generate profits.
  • The trend towards energy-efficient lighting and smart controls, as well as infrastructure spending, are expected to drive growth in the lighting industry. Acuity is well-positioned to capitalize on these trends.
  • With a forward P/E of 14 and EV/EBITDA of 9.5, Acuity is currently trading at a discount to its long-term average valuation.
Woman controlling the lights of her house using a home automation system


Executive Summary

Acuity Brands (NYSE:AYI) is an exceptional business that can be purchased at a highly reasonable price point. The company is a dominant force in the reliable lighting and control sector and has demonstrated excellent returns on invested capital

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AYI over 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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