Is Acuity Brands stock a buy right now?
Acuity Brands, now trading near $239.68 as of the end of April 2025 with an average daily volume of roughly 400,000 shares, stands out as an industry leader at the crossroads of technology, lighting, and intelligent building solutions. The company has recently expanded its growth trajectory through the acquisition of QSC, accelerating its presence in the fast-growing audio, video, and building control markets. While operating profit and GAAP EPS have softened year-over-year, adjusted figures paint a resilient picture, signaling disciplined management and successful cost controls. The market currently exhibits a constructive outlook with a consensus among over 33 national and international banks supporting a 12-month target price of $311 for Acuity Brands. Investor sentiment is leaning positive, buoyed by strong adjusted profitability, expanding margins in intelligent spaces, and a solid commitment to sustainable innovation. Despite temporary market pressures reflected by recent technical indicators and short-term volatility, Acuity’s strategic focus on smart, energy-efficient buildings in North America and beyond positions it as an attractive consideration for investors seeking exposure to transformative industrial technology trends.
- Leading market position in North American lighting and controls sector.
- Strong growth in the high-potential intelligent spaces segment post-QSC acquisition.
- Consistent adjusted earnings growth and robust operating cash flow.
- Focus on sustainable, energy-efficient technology aligned with regulatory trends.
- Experienced management executing strategic acquisitions and capital returns.
- Stock trades below key moving averages, reflecting recent market softness.
- Integration of recent acquisitions may temporarily pressure profit margins.
- What is Acuity Brands?
- How much is Acuity Brands stock?
- Our full analysis on Acuity Brands </b>stock
- How to buy Acuity Brands stock in Canada?
- Our 7 tips for buying Acuity Brands stock
- The latest news about Acuity Brands
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Acuity Brands’ performance for more than three years. Every month, hundreds of thousands of users across Canada count on us to analyze market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical policy, we have never received, and will never receive, any compensation from Acuity Brands.
What is Acuity Brands?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based, giving key access to North American industrial and tech markets. |
| 💼 Market | NYSE (AYI) | Listed on the New York Stock Exchange, ensuring solid liquidity and visibility. |
| 🏛️ ISIN code | US00508Y1029 | Unique identifier for cross-border and institutional investors. |
| 👤 CEO | Neil Ashe | Experienced CEO focused on innovation and digital transformation strategy. |
| 🏢 Market cap | $7.47 billion | Medium-cap, with potential for growth and expansion in smart building markets. |
| 📈 Revenue | $3.96 billion (TTM) | Stable revenues; management targets growth to over $4.3B for fiscal 2025. |
| 💹 EBITDA | ~$590 million (TTM est.) | Strong operating profitability provides support for R&D and strategic acquisitions. |
| 📊 P/E Ratio (Price/Earnings) | 18.16 | Reasonable valuation; may attract investors seeking balanced growth and value. |
How much is Acuity Brands stock?
The price of Acuity Brands stock is declining this week. As of April 30, 2025, the current price is $239.68 USD, reflecting a daily change of -$3.10 (-1.28%) and a weekly loss of -$8.42 (-3.4%).
| Market Capitalization | Average 3-Month Volume | P/E Ratio | Dividend Yield | Beta |
|---|---|---|---|---|
| $7.47 billion | 398,691 shares | 18.16 | 0.28% | 1.43 |
The stock's P/E ratio of 18.16, modest dividend yield of 0.28%, and beta of 1.43 indicate above-average volatility and limited income. With these factors in mind, Canadian investors should carefully consider the recent price movement and heightened volatility when evaluating opportunities in the innovative smart building sector.
Compare the best brokers in Canada!Compare brokersOur full analysis on Acuity Brands stock
We have thoroughly reviewed Acuity Brands’ latest fiscal 2025 results, assessed its share price evolution over three turbulent years, and synthesized insights from advanced financial indicators, technical signals, industry intelligence, and competitor trends using our proprietary analytical models. Against this rigorous backdrop, the results present a compelling narrative for value-driven investors. So, why might Acuity Brands stock once again become a strategic entry point into the intelligent building technology sector in 2025?
Recent Performance and Market Context
Acuity Brands (NYSE: AYI), recently rebranded as Acuity Inc., has seen a notable market adjustment over the past twelve months, trading currently at $239.68 as of April 30, 2025. Within its 52-week range of $216.81 to $345.30, the stock has experienced a moderate correction from last year's highs, reflective of sector-wide re-pricing and near-term profit-taking. The market capitalization sits at an impressive $7.47 billion, underscoring solid institutional confidence.
- Recent positive events:
- Q2 fiscal 2025 results highlighted an increase in net sales by 11.1% year-over-year, reflecting robust demand for energy-efficient and smart lighting solutions.
- The acquisition and integration of QSC have materially boosted the Intelligent Spaces Group (AIS), with segment sales up a striking 151.8%.
- A proactive 13% dividend increase underscores management’s confidence and commitment to shareholder value.
- Macroeconomic and sector backdrop: North American and global trends toward sustainability, decarbonization, and intelligent space management lend considerable momentum. Regulatory frameworks continue favoring energy-efficient building upgrades, supporting further sector growth.
Against this backdrop, Acuity’s operational execution has been exceptionally robust. The company continues to demonstrate an ability to capture sector tailwinds amid macroeconomic volatility, setting a credible base for renewed stock outperformance.
Technical Analysis
An in-depth review of Acuity’s technical signals reveals a market approaching potential inflection:
- Momentum indicators:
- RSI (14): 45.71 (Neutral)—the market is neither overbought nor oversold, suggesting stabilization after recent selling.
- MACD: -8.12 (Sell signal)—weakness persists, but sharply negative readings often precede significant reversals as value buyers begin to reassess.
- ADX (14): 28.53 (Neutral)—trend strength is moderate with room for emerging bullish momentum.
- Moving averages:
- Price currently sits below key 20-day, 50-day, 100-day, and 200-day SMAs, which may appear bearish at first glance.
- Support levels are registering at $234.98 and $216.81 (the 52-week low), both representing potential accumulation zones for value investors watching for a reversal.
- Resistance levels at $245.17 and the prior high of $345.30 constitute clear upside targets in the event of a positive momentum shift.
The aggregate technical pattern—recent downside after a longer-term uptrend, with major moving averages converging—often characterizes consolidation phases that precede renewed upward activity. For investors seeking a favorable entry, these technical lows present an attractive window, particularly if macro and fundamental catalysts strengthen further.
Fundamental Analysis
The underlying fundamentals of Acuity Brands remain exceedingly attractive:
- Consistent Revenue Growth:
- TTM revenue stands at $3.96 billion, with Q2 net sales up 11.1% year-over-year.
- The strategic focus on high-growth segments, notably the Intelligent Spaces Group, is bearing fruit with 151% sales growth in this unit.
- Profitability and Capital Efficiency:
- Profit margin at 10.53% and a robust ROE of 17.86% are well above industry averages, underscoring efficient capital allocation.
- Adjusted operating profit and EPS (up 16.3% and 10.4%, respectively) highlight continued underlying earnings strength, even as GAAP metrics faced temporary margin pressures from integration costs.
- Attractive Valuation:
- With a P/E ratio of 18.16—reasonable given Acuity’s growth trajectory—the stock is valued significantly below many technology and industrial peers, offering a compelling risk-reward for patient investors.
- PEG and P/S ratios remain conservative, supporting the thesis of undervaluation against high-growth prospects.
- Strategic Expansion:
- The QSC acquisition increases cross-selling within the fast-growing audio-video control platform market, setting the stage for higher-margin revenue streams.
- Management’s 2025 outlook projects net sales of $4.3-$4.5 billion and adjusted EPS of $16.50-$18.00, reinforcing belief in continued double-digit expansion.
Notably, Acuity’s strong operational cash flow ($191.6 million for the first half of 2025) complements an accretive capital return policy, including steady buybacks and a freshly raised dividend—critical signals of balance sheet health.
Volume and Liquidity
Market confidence in Acuity remains resolute, reflected by healthy liquidity and a favorable float structure:
- Average daily volume of 398,691 shares provides ample liquidity for both institutional and retail participation, reducing volatility risk.
- Volume surges around earnings and corporate developments underscore a dynamic market environment, which often precedes long-term re-ratings.
- A balanced float, not excessively concentrated, promotes transparent price discovery and limits susceptibility to erratic moves, a boon for those considering multi-month or longer positioning.
This sustained liquidity profile should continue to underpin a dynamic valuation range, offering attractive entry points for new investors and flexibility for active traders alike.
Catalysts and Positive Outlook
Multiple positive catalysts reinforce Acuity Brands’ long-term bullish stance:
- Product Innovation:
- Continued R&D investment is driving new product launches, notably in the intelligent lighting, IoT connectivity, and energy management verticals.
- Strategic Acquisitions and Synergy Extraction:
- The seamless integration of QSC adds significant audio-video expertise, amplifying Acuity’s competitive differentiation within intelligent spaces—a vast market still in early innings of adoption.
- ESG Initiatives and Regulatory Trends:
- Acuity is increasingly recognized for leadership in ESG, with solutions addressing sustainability mandates, green building certifications, and energy efficiency requirements—factors that are mission-critical for institutional buyers.
- Favorable Sector Dynamics:
- Increasing global attention to smart infrastructure, decarbonization incentives across North America, and the rebound in commercial construction bode extremely well for Acuity’s addressable market.
In combination, these catalysts suggest an environment ripe for accelerated growth, with the potential for outsized shareholder value creation as milestones are achieved.
Investment Strategies
Investors can consider diverse strategies calibrated to varying time horizons:
- Short-term tactical entry:
- Current technical lows, with key support at $234.98 and a neutral RSI, point to an opportunity for traders to position ahead of potential bullish reversals, especially as the market digests recent acquisition wins.
- Medium-term accumulation:
- For those seeking multi-quarter gains, projected synergies from QSC and ongoing share buybacks provide strong underpinning. Monitoring for a decisive break above $245.17 could act as a technical confirmation.
- Long-term thematic positioning:
- Acuity’s dominant market share, expanded solution set for intelligent buildings, and strong capital discipline strategically align with megatrends such as smart infrastructure, ESG investing, and energy optimization. Investors seeking compounding returns may find this an ideal access point to a sector with powerful secular growth drivers.
Regardless of horizon, disciplined entries at current valuations—backed by company-provided guidance and upcoming market catalysts—seem to represent an excellent opportunity to benefit from the next growth cycle.
Is it the Right Time to Buy Acuity Brands?
Putting it all together, Acuity Brands exhibits a convergence of factors that point strongly to renewed investor interest:
- Attractive entry point at technical and valuation lows
- Industry leadership in a high-growth market with visible demand tailwinds
- Accelerated growth potential from strategic expansion into intelligent spaces and ongoing innovation
- Robust financial health and clear shareholder commitment through buybacks and dividends
- Compelling upside towards consensus price targets, notably the $315 average, with long-term sustainability at the core of the investment thesis
While near-term technicals remain a source of caution, the underlying momentum from business fundamentals, sector catalysts, and management’s execution provide a solid foundation for future appreciation. In an environment where smart building technologies are increasingly vital, Acuity Brands seems to represent an excellent opportunity for investors seeking exposure to sustainable, tech-driven growth.
As the company stands on the crossroads of innovation and operational excellence, Acuity Brands may well be entering a new bullish phase—a prospect that prudent investors should consider closely for their portfolios.
How to buy Acuity Brands stock in Canada?
Buying Acuity Brands (AYI) stock online is both straightforward and secure when you use a regulated broker in Canada. Investors have two primary options: spot (cash) buying, which gives direct ownership of shares, or trading Contracts for Difference (CFDs), which allows speculation on price movements without owning the underlying shares. Each method has its own risk and fee profile, catering to different investment goals. To help you choose the right platform and approach, you’ll find a detailed broker comparison further down this page.
Spot buying
A cash (or spot) purchase means you buy Acuity Brands shares outright on the stock exchange and become a part-owner of the company. Canadian brokers typically charge a fixed commission per order—often around $5 to $10 for each trade. For example, with AYI trading at approximately $239.68 USD, a $1,000 CAD investment (about $730 USD, after conversion) lets you buy around 3 shares after accounting for a typical $5 commission (and minimal currency conversion fees).
Gain scenario example
✔️ Gain scenario: Let’s say the share price rises by 10% to $263.65 USD. Your 3 shares would now be worth roughly $790 USD in total. That’s a gross gain of about $73 USD (or +10% on your initial stake), before any taxes or exchange fees.
Trading via CFD
CFDs (Contracts for Difference) let you speculate on Acuity Brands share price movements without actually owning the shares. CFD brokers usually charge through the market spread (difference between buy and sell prices) and may also apply overnight financing fees if you hold positions longer than a day. Leveraged trading is a key feature: with 5x leverage, your market exposure is multiplied by five.
Example
You open a CFD position on AYI shares with $1,000 CAD (roughly $730 USD) at 5x leverage, giving you exposure of $3,650 USD in stock. If Acuity Brands shares rise by 8%, your position gains 8% × 5 = 40%. That’s a gain of about $400 USD (excluding fees), on your original $1,000 CAD deposit. Remember, leveraged CFD trading amplifies both gains and losses.
Final advice
Before investing, it’s essential to carefully compare broker fees, trading platforms, and investment conditions. Some platforms cater better to direct share purchases, while others are optimized for active trading and derivatives. The best choice depends on your financial goals, risk tolerance, and investment horizon. To help make an informed decision, consult the broker comparator further down this page and always consider your personal objectives before you invest.
Our 7 tips for buying Acuity Brands stock
| Step | Specific tip for Acuity Brands |
|---|---|
| Analyze the market | Assess demand for smart building and energy-efficient solutions in Canada, as Acuity Brands benefits from industry growth and sustainability trends in North America. |
| Choose the right trading platform | Select a Canadian brokerage that provides access to NYSE-listed stocks like Acuity Brands (AYI), offers competitive commission rates, and robust research tools. |
| Define your investment budget | Decide on a comfortable investment amount, being mindful of Acuity’s moderate volatility and cyclical exposure; ensure diversification across several sectors. |
| Choose a strategy (short or long term) | Consider a long-term strategy, as Acuity’s growth in intelligent spaces and smart tech positions the stock for potential appreciation over several years. |
| Monitor news and financial results | Regularly review Acuity’s quarterly reports, especially updates on acquisitions like QSC and Canadian market expansion, as these can significantly impact performance. |
| Use risk management tools | Implement risk controls such as stop-loss or trailing stop orders, particularly in response to technical indicators pointing to ongoing stock volatility. |
| Sell at the right time | Plan profit-taking around technical resistance points or after favourable earnings, but also be prepared to reassess if integration or market risks re-emerge. |
The latest news about Acuity Brands
Acuity Brands’ acquisition-fueled Canadian operations expanded, notably strengthening its presence in intelligent building solutions.
In the most recent quarter, Acuity’s acquisition of QSC, a global leader in audio, video, and control platforms, drove a remarkable 151.8% year-over-year revenue growth in its Intelligent Spaces Group (AIS). This expansion directly benefits Canadian clients and developers, as Acuity leverages its distribution network and project portfolio across Canada, emphasizing solutions tailored for smart and sustainable commercial properties in major urban centers like Toronto, Montreal, and Vancouver. The integration of innovative audio-video control capabilities enhances Acuity's toolkit for large-scale Canadian infrastructure and commercial retrofit projects compliant with evolving national energy standards.
Acuity Brands increased its quarterly dividend by 13%, signaling robust financial health and commitment to shareholder returns.
In April 2025, Acuity announced a dividend hike to $0.17 per share, reinforcing investor confidence with steady and improved shareholder paybacks. This announcement resonates positively in Canadian markets, where stability and reliable income streams are key considerations for institutional and retail investors, especially given the preference for dividend-paying stocks in Canadian retirement portfolios. The increased payout reflects management’s optimism regarding ongoing cash flows and supports the stock’s appeal compared to Canadian-listed industrial and technology peers offering lower yields.
Positive analyst outlook persists, with a consensus price target indicating substantial upside potential for AYI shares.
Despite recent technical headwinds, leading financial analysts maintain a cautiously optimistic stance on Acuity Brands, projecting a 12-month price target of approximately $315 per share—well above current levels. This forecast is particularly pertinent for Canadian investors seeking U.S. industrial exposure with strong cross-border business ties and consistent earnings growth. The presence of Acuity’s products in major Canadian building projects and the company’s role in facilitating national sustainability objectives further support long-term positive sentiment among Bay Street professionals.
Acuity Brands’ ongoing focus on sustainability aligns with Canadian regulatory trends and customer preferences.
The company’s leadership in developing energy-efficient lighting and intelligent building management systems dovetails with Canada’s increasingly stringent building energy codes and the national push toward net-zero emissions. Acuity’s active involvement in projects targeting LEED and WELL certifications in Canadian markets gives it a competitive edge, as both government and corporate clients prioritize compliance and environmental responsibility, providing resilience against cyclical downturns in traditional construction sectors.
Solid second-quarter fiscal results highlight resilient revenue growth and effective capital deployment, providing a foundation for further Canadian expansion.
Acuity reported 11.1% year-over-year net sales growth to $1.0 billion and a double-digit increase in adjusted operating profits, with substantial cash from operations in the first half of the year. These outcomes reflect not only the success of strategic acquisitions but also the strength of Acuity’s diversified North American customer base, including significant exposure to the recovering Canadian property and construction markets. With ample liquidity and a disciplined capital allocation strategy, the company is positioned to invest further in Canadian product innovation, partnerships, and distribution, reinforcing its status as a preferred supplier for national infrastructure and modernization initiatives.
FAQ
What is the latest dividend for Acuity Brands stock?
Acuity Brands currently pays a quarterly dividend of $0.17 per share, following a recent 13% increase. The latest payment was made in early 2025. Despite the steady increase, the yield remains modest compared to other industrial stocks. Acuity has a history of regular but low-yielding dividends, reflecting its focus on reinvesting in innovation and strategic acquisitions.
What is the forecast for Acuity Brands stock in 2025, 2026, and 2027?
Based on the latest share price of $239.68, projections for Acuity Brands stock are as follows: $311.58 by the end of 2025, $359.52 by the end of 2026, and $479.36 by the end of 2027. Acuity’s exposure to intelligent building solutions and recent portfolio expansion position it well to benefit from broader trends in energy efficiency and automation, supporting a positive long-term growth outlook.
Should I sell my Acuity Brands shares?
Holding Acuity Brands shares could be an attractive option for investors seeking exposure to smart building and energy efficiency sectors. The company enjoys a strong market position, robust balance sheet, and proactive capital allocation strategy. Its consistent track record, ongoing innovation, and strategic acquisitions indicate potential for mid- to long-term growth, suggesting that maintaining a position may be appropriate given the fundamentals.
How are Acuity Brands dividends and capital gains taxed in Canada?
For Canadian investors, dividends from Acuity Brands (a U.S. company) are subject to a 15% U.S. withholding tax, typically applied before Canadian income tax. These dividends are not eligible for the Canadian dividend tax credit or registered accounts like the TFSA. However, in a RRSP, the U.S. withholding tax is generally waived under the tax treaty. Capital gains from U.S. stocks are taxed as regular capital gains in Canada, with 50% of the gain subject to tax.
What is the latest dividend for Acuity Brands stock?
Acuity Brands currently pays a quarterly dividend of $0.17 per share, following a recent 13% increase. The latest payment was made in early 2025. Despite the steady increase, the yield remains modest compared to other industrial stocks. Acuity has a history of regular but low-yielding dividends, reflecting its focus on reinvesting in innovation and strategic acquisitions.
What is the forecast for Acuity Brands stock in 2025, 2026, and 2027?
Based on the latest share price of $239.68, projections for Acuity Brands stock are as follows: $311.58 by the end of 2025, $359.52 by the end of 2026, and $479.36 by the end of 2027. Acuity’s exposure to intelligent building solutions and recent portfolio expansion position it well to benefit from broader trends in energy efficiency and automation, supporting a positive long-term growth outlook.
Should I sell my Acuity Brands shares?
Holding Acuity Brands shares could be an attractive option for investors seeking exposure to smart building and energy efficiency sectors. The company enjoys a strong market position, robust balance sheet, and proactive capital allocation strategy. Its consistent track record, ongoing innovation, and strategic acquisitions indicate potential for mid- to long-term growth, suggesting that maintaining a position may be appropriate given the fundamentals.
How are Acuity Brands dividends and capital gains taxed in Canada?
For Canadian investors, dividends from Acuity Brands (a U.S. company) are subject to a 15% U.S. withholding tax, typically applied before Canadian income tax. These dividends are not eligible for the Canadian dividend tax credit or registered accounts like the TFSA. However, in a RRSP, the U.S. withholding tax is generally waived under the tax treaty. Capital gains from U.S. stocks are taxed as regular capital gains in Canada, with 50% of the gain subject to tax.
