Acuity Brands Intrinsic Value – ACUITY BRANDS Reports Earnings Results for Third Quarter of FY 2023

🌥️Earnings Overview

On June 29 2023, ACUITY BRANDS ($NYSE:AYI) reported their fiscal year 2023 third quarter earnings, showing total revenue of USD 1000.3 million, a 5.7% decline from the same period in the previous year. Net income decreased 0.7%, totalling USD 105.0 million, compared to the same quarter in the prior year.

Stock Price

On Thursday, ACUITY BRANDS reported their earnings results for the third quarter of fiscal year 2023. The stock opened at $159.0 and closed at $162.5, up by 1.1% from the previous closing price of $160.7. This was a positive development for investors as the company has been able to maintain a steady increase in share price over the past year.

The company’s revenue and net income showed strong growth and total assets increased significantly. Investors have reacted positively to these results as the stock price has risen by 1.1%. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Acuity Brands. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Acuity Brands. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Acuity Brands. More…

Key Ratios Snapshot

Some of the financial key ratios for Acuity Brands are shown below. More…

Analysis – Acuity Brands Intrinsic Value

GoodWhale recently conducted an analysis on the wellbeing of ACUITY BRANDS. Our proprietary Valuation Line revealed that the intrinsic value of ACUITY BRANDS’ share is approximately $193.3. However, the current market price of ACUITY BRANDS’ shares is currently at $162.5, a 15.9% undervaluation. More…

Peers

The competition in the lighting industry is fierce, with Acuity Brands Inc being one of the most prominent competitors. It is up against a range of other players such as Hengdian Group Tospo Lighting Co Ltd, Lena Lighting SA, and Dongguan Kingsun Optoelectronic Co Ltd. Each of these companies is vying for a share of the market with their own unique range of products and services. As such, they are all competing to be the top choice for customers looking to purchase lighting solutions.

– Hengdian Group Tospo Lighting Co Ltd ($SHSE:603303)

Hengdian Group Tospo Lighting Co Ltd is a Chinese lighting manufacturer and distributor that specializes in LED lighting products. As of 2022, the company has a market capitalization of 8.88 billion, indicating that it is a large and successful enterprise. Furthermore, the company has achieved a Return on Equity of 6.08%, which is an impressive figure for such a large company. This indicates that the company is able to efficiently and effectively use its resources to generate returns for its shareholders.

– Lena Lighting SA ($LTS:0O7K)

Lena Lighting SA is a leading provider of lighting solutions for commercial, industrial, and residential applications. The company designs, manufactures, and distributes LED and conventional lighting systems for a variety of purposes. As of 2022, Lena Lighting SA has a market cap of 95.27M and a Return on Equity of 8.26%. Its market cap is an indication of the company’s ability to generate profits from its investments and reflects the overall value of its stock in the market. Its ROE measures the efficiency of its management and financial performance, showing how well the company is doing in terms of generating returns on its investments.

– Dongguan Kingsun Optoelectronic Co Ltd ($SZSE:002638)

Dongguan Kingsun Optoelectronic Co Ltd is a Chinese based company that specializes in the design and manufacture of optoelectronic components for a variety of industries. The company has a market cap of 3.42B as of 2022, making it one of the larger companies in its sector. Despite having a relatively high market cap, the company has a Return on Equity of -15.89%, which is lower than many of its competitors. This suggests that the company may be struggling to turn a profit or is facing other issues that are affecting its performance.

Summary

Investors may be wary of the recent earnings report from Acuity Brands, which reported total revenue of USD 1000.3 million for the third quarter of 2023, a 5.7% decrease from the same period last year. Net income was also down 0.7% from the same period in the prior year. Despite these declines, investors should focus on the cost structure and potential for operational growth that Acuity Brands has presented in the past. It may be wise to wait and see how Acuity Brands progresses in the next quarter before investing or making any decisions.