Stock fact sheet · data as of
Acuity Brands, Inc. (AYI): fair value, margin of safety and Wheel Score
Industrials · Electrical Equipment & Parts · United States · Quality / Blue-Chip
Is AYI undervalued?
At 301.87 (close of 16 Oct 2026), AYI trades within a few percent of the GLS average fair value of 311.90 (3.2% below fair value). 9 models produced a value and they split 4 above the price to 5 below. A stock priced at fair value earns about half of the Wheel Score's Value points; the rest of the score comes from health, moat, premium and stability.
There is a wide gap between DDM (11.77) and Payback Time (699.07). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files AYI under Quality / Blue-Chip: a high moat score and a high health score together.
Nine valuation models for AYI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 207.42 | -31% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 199.03 | -34% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 401.06 | +33% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 129.72 | -57% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 347.45 | +15% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 614.56 | +104% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 699.07 | +132% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 11.77 | -96% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 197.04 | -35% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1.34 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 373.67 | +24% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Acuity Brands, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 7.8/10 puts AYI among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.
Returns on capital are high - ROIC 14.5%, ROE 17.9%, ROA 10.9% - with debt at 0.23 times equity and a free-cash-flow yield of 8.3%.
The dividend yield is 0.27% with a payout ratio of 4% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Acuity Brands Lighting 43%, Sales Channel, Through Independent Sale… 33%, Intelligent Spaces Group 13% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 24 Sep 2026.
| Piotroski F-score | 8 / 9 | ROIC | 14.5% |
|---|---|---|---|
| GLS Moat | 7.8 / 10 | ROE | 17.9% |
| Debt / equity | 0.23 | ROA | 10.9% |
| Free-cash-flow yield | 8.3% | Payout ratio | 4% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 74: Good
With a Wheel Score of 74 - the Good band - Acuity Brands, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 14/25, Health 18/20, Moat 12/15, Premium 17/20, Stability 14/20; Value (14/25) scores lowest.
Implied volatility is 32% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (17 of 20 points). Chain open interest is 4,539 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 258k shares a day on a market cap of $9.0B, with a beta of 1.30 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 14 / 25 | 3% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 12 / 15 | moat 7.8/10 | |
| Premium | 17 / 20 | implied volatility 32% | |
| Stability | 14 / 20 | 258k shares/day, $9.0B cap, beta 1.30 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 14 Jan 2027, 90 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 16 Oct 2026 (0.2000 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Electrical Equipment & Parts
The 12 companies below are the closest to Acuity Brands, Inc. by market cap within the Electrical Equipment & Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| FPS Forgent Power Solutions, Inc. | 32.37 | 7.35 | -341% | 47Weak | $8.4B |
| ENS EnerSys | 172.82 | 215.72 | +20% | 86Prime | $6.2B |
| POWL Powell Industries, Inc. | 169.53 | 130.40 | -30% | 52Fair | $6.2B |
| NVT nVent Electric plc | 145.78 | 80.74 | -81% | 64Fair | $23.6B |
| HUBB Hubbell Incorporated | 464.71 | 318.88 | -46% | 64Fair | $24.6B |
| ATKR Atkore Inc. | 94.92 | 51.96 | -83% | 45Weak | $3.2B |
| VGNT Versigent PLC | 42.56 | 81.32 | +48% | 88Prime | $3.0B |
| EROC ERock, Inc. | 9.95 | 23.98 | +59% | 45Weak | $2.7B |
| HAYW Hayward Holdings, Inc. | 11.74 | 15.11 | +22% | 87Prime | $2.5B |
| PLUG Plug Power Inc. | 1.45 | - | - | 45Weak | $2.0B |
| PLPC Preformed Line Products Company | 375.36 | 101.19 | -271% | 35No options | $1.8B |
| SMR NuScale Power Corporation | 5.83 | 0.3260 | -1688% | 32Weak | $1.7B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about AYI
Is AYI undervalued right now?
Not meaningfully: at 301.87 the stock trades within a few percent of the GLS average fair value of 311.90 (3.2% below fair value, data as of 16 Oct 2026).
What is the Wheel Score of AYI and what does it mean?
AYI scores 74 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for AYI?
311.90 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Acuity Brands, Inc. report earnings next?
The next earnings report is due on 14 Jan 2027, 90 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does AYI have listed options, and how liquid are they?
Yes. The nightly snapshot found 334 listed contracts with 4,539 open interest across all expiries and implied volatility of 32% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.