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AYI

9/9 Score

Acuity Brands, Inc.

Analysis Date: February 21, 2026

Acuity Brands, Inc. provides lighting and building management solutions in North America and internationally. The company operates through two segments, Acuity Brands Lighting and Lighting Controls (ABL); and the Intelligent Spaces Group (ISG). The ABL segment provides commercial, architectural, and specialty lighting solutions, as well as lighting controls and components for various indoor and outdoor applications under the Lithonia Lighting, Holophane, Peerless, Gotham, Mark Architectural Lighting, Winona Lighting, Juno, Indy, Aculux, Healthcare Lighting, Hydrel, American Electric Lighting, Sunoptics, eldoLED, nLight, Sensor Switch, IOTA, A-Light, Cyclone, Eureka, Lumniaire LED, Luminis, Dark to Light, and RELOC Wiring Solutions brands. This segment serves electrical distributors, retail home improvement centers, electric utilities, national accounts, digital retailers, lighting showrooms, and energy service companies. The ISG segment offers building management systems and location-aware applications under the Distech Controls, Atrius, and Rockpile Ventures brands. This segment serves system integrators, as well as retail stores, airports, and enterprise campuses. Acuity Brands, Inc. was incorporated in 2001 and is headquartered in Atlanta, Georgia.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 15.5%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 12.0%

  • Cash Machine

    FCF / Assets > 5%

    Value: 11.2%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 4.3%

  • Share Buybacks

    Share Count is Dropping

    Value: -0.1%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 48.1%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Industrials

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.33x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 104.5%

Analysis Summary

A company that passes all nine of our core criteria is a rare bird indeed. AYI stands out with its robust profitability, evidenced by a solid ROE and ROIC, and sports a defensible moat that speaks to its long-term staying power. This, combined with a simple business model and lean debt, suggests it's built to last, making it an interesting prospect worth further examination.

Latest Posts

Acuity Brands' Quiet Moat: Why Buffett's Framework Gives It a Perfect 9/9

February 9, 2026

Acuity Brands quietly scores a perfect 9/9 on Buffett's framework — powered by 48% gross margins, near-zero debt, and an Intelligent Spaces business growing fast. Is this industrial compounder underappreciated?

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