Acuity Brands Looks Attractive At Current Levels


  • The company is seeing good demand from commercial and institutional customers as the economy reopens.
  • As supply chain constraints ease, the company should be able to convert its pending backlog orders into revenue.
  • The company’s margin should benefit from the higher price realization and stabilization of higher input costs.
  • Valuations are attractive.

silhouette form of bull on technical financial graph


Investment Thesis

Acuity Brands (NYSE:AYI) has been experiencing strong demand for its products, leading to good volume growth over the last few quarters. The strong demand also benefited the company’s order book, resulting in elevated order backlog levels, which are higher than

AYI's adjusted operating margin

AYI’s adjusted operating margin (Company’s data, GS Analytics Research)

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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