Acuity Brands, Inc. ($AYI) Possible Buy to $268 Confident Investor Rating: Good

Company name Acuity Brands, Inc.
Stock ticker AYI
Live stock price [stckqut]AYI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Fair
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $375.44
Target stock price (averages with growth) $412.26
Target stock price (averages with no growth) $193.28
Target stock price (manual assumptions) $94.71

The following company description is from Google Finance: http://www.google.com/finance?q=ayi

Acuity Brands, Inc. (Acuity Brands), is the parent company of Acuity Brands Lighting, Inc. (ABL), and other subsidiaries. Acuity Brands is a provider of lighting solutions for commercial, institutional, industrial, infrastructure, and residential applications throughout North America and select international markets. The Company’s lighting solutions include devices, such as luminaires, lighting controls, power supplies, prismatic skylights, light-emitting diode (LED) lamps, and integrated lighting systems for indoor and outdoor applications utilizing a combination of light sources, including daylight, and other devices controlled by software that monitors and manages light levels while optimizing energy consumption (collectively referred to herein as lighting solutions). On March 13, 2013, the Company acquired eldoLED Europe BV.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Acuity Brands, Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Acuity Brands, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $260.98
  • Growth: 0.2
  • Current EPS (TTM): $6.13
  • P/E: 10
  • Future EPS Calc: $15.25
  • Future Stock Price Calc: $152.53
  • Target stock price: $94.71

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I hope that this makes you a Confident Investor.

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