Acuity Brands, Inc.: Company Profile and SWOT Analysis

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Acuity Brands, Inc.: Company Profile and SWOT Analysis
Acuity Brands, Inc.



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Acuity Brands, Inc. Financial Snapshot



Operating Performance

Fast Facts

1170 Peachtree Street, N.E., Atlanta, The company reported revenues of US$1,626.90

Headquarters Address

30309,United States of America million during 2010, with a CARC of -3.04% during

2006–2010. Its revenue declined at an annual rate of

Telephone + 1 404 8531400

1.84% over the previous fiscal year. In 2010, the

company recorded an operating margin of 9.05%, as

Fax + 1 404 8531430 against 9.28% in 2009.



Website www.acuitybrands.com

Revenue and Margins

Ticker Symbol, Stock Exchange AYI, New York Stock Exchange



Number of Employees 6,000



Fiscal Year End August



Revenue (in US$ million) 1,626.90









SWOT Analysis



Strengths Weaknesses Return on Equity



Improving Liquidity Position Declining Operating Margin The company recorded a return on equity (ROE) of

11.46% for 2010, as compared to its peers, Hubbell

Incorporated (Ticker: HUB.B), Cooper Industries, Inc.

Research and Development Initiatives Lack of Focus in International Markets (Ticker: CBE) and Koninklijke Philips Electronics N.V.

(Ticker: PHIA), which recorded ROEs of 14.88%,

Weakening Solvency Position 13.84% and 9.61% respectively. The company

reported an operating margin of 9.05% in 2010.

Opportunities Threats

Return on Equity

Infrastructure Spending in the US Negative Construction Outlook for US



Positive Outlook of the Canada Real

Rising Labor Costs in US

Estate Market



Remodeling Business In the US Volatility in Raw Material Prices









Liquidity Position



The company reported a current ratio of 1.95 in 2010,

as compared to its peers, Hubbell Incorporated,

Cooper Industries, Inc. and Koninklijke Philips

Electronics N.V., which recorded current ratios of

2.76, 2.43 and 1.36 respectively. As of August 2010,

the company recorded cash and short-term

investments of worth US$191.00 million, against zero

current debt. The company reported a debt to equity

ratio of 0.51 in 2010 as compared to its peers,

Hubbell Incorporated, Cooper Industries, Inc. and

Koninklijke Philips Electronics N.V., which recorded

debt to equity ratios of 0.41, 0.45 and 0.31

respectively.









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Acuity Brands, Inc. - SWOT Profile Page 1

Acuity Brands, Inc.



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TABLE OF CONTENTS



1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview ................................................................................................................................................5

1.2 Business Description ..............................................................................................................................................5

1.3 Major Products and Services .................................................................................................................................6

2 Analysis of Key Performance Indicators ............................................................................................... 7

2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7

2.2 Key Financial Performance Indicators .................................................................................................................10

2.2.1 Revenue and Operating Profit .........................................................................................................................10

2.2.2 Asset, Liabilities and Capex .............................................................................................................................11

2.2.3 Operational Efficiency ......................................................................................................................................12

2.2.4 Solvency ..........................................................................................................................................................13

2.2.5 Valuation ..........................................................................................................................................................14

2.3 Competitive Benchmarking ..................................................................................................................................15

2.3.1 Market Capitalization .......................................................................................................................................15

2.3.2 Efficiency ..........................................................................................................................................................16

2.3.3 Capital Expenditure ..........................................................................................................................................17

2.3.4 Valuation ..........................................................................................................................................................18

2.3.5 Turnover – Inventory and Asset .......................................................................................................................19

2.3.6 Liquidity ............................................................................................................................................................20

3 Mergers & Acquisitions and Partnerships ........................................................................................... 21

3.1 M&A and Partnerships Strategy ...........

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