Value
6.0/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 5.8 |
| P/S | 9.0 |
| EV/EBITDA | 4.3 |
| Fwd P/E | 8.2 |
| PEG | 5.9 |
| Analyst target | 3.0 |
- ▸Forward P/E: 14.4x
- ▸PEG: 1.27
AYI · Why this verdict
Why Acuity (AYI) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictHOLD
Overall score5.6/10
ConfidenceMEDIUM
MacroNEUTRAL
TrendMatrix Research · core thesis
Engine thesis — one sentence
A perfect four-quarter earnings beat record and a Piotroski F-Score of 9/9 signal a high-quality business entering its next report in 9 days, but a technical death cross and just 1.4% headroom to the analyst consensus target leave the near-term risk/reward tilted against new entry.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
Four consecutive earnings beats — including a 15.3% positive surprise two quarters ago and an average quarterly beat of 7.1% — reflect a business that has consistently outperformed consensus expectations across varying operating environments. Earnings | The upcoming earnings report in 9 days delivers a fifth consecutive beat, extending the positive-surprise streak. | →Stable |
| CounterThe beat streak has been accompanied by an implied volatility at 63%, meaning the market is already pricing in a meaningful move; a smaller-than-expected beat or an in-line result could disappoint on the options-implied bar, triggering a sell-the-news reaction. | ||
A perfect Piotroski F-Score of 9 out of 9 indicates the business is simultaneously improving profitability, leverage, and operating efficiency — a rare combination that historically correlates with sustained outperformance. Quality breakdown | Piotroski F-Score remains at 8 or above over the next 4 quarters, reflecting continued operating discipline. | →Stable |
| CounterA sole-source supplier situation flagged in company disclosures represents a supply-chain fragility that the Piotroski score cannot capture; a disruption to a critical input source could rapidly impair the operating metrics that currently earn the high score. | ||
A death cross — where the 50-day moving average crosses below the 200-day — has triggered a hard technical block, and the stock sits below its long-term trend line with a flat moving-average slope, signaling the price action does not yet support adding exposure. Engine gate (failed) | The 50-day moving average crosses back above the 200-day (a golden cross) within the next 3 months, removing the technical overhang. | →Stable |
| CounterA death cross is a lagging signal, and with earnings 9 days away carrying a perfect beat streak, a strong result could catalyze a sharp recovery that quickly resolves the technical pattern. | ||
A 55% geographic concentration in Mexico for manufacturing exposes the company to tariff, currency, and supply-chain disruptions that are largely outside management's control and that the current valuation may not adequately discount. Bear case | Mexico manufacturing concentration decreases below 40% of total production within 24 months, reflecting supply-chain diversification that reduces the binary policy risk. | →Stable |
| CounterHigh concentration in a single low-cost manufacturing hub can be a competitive cost advantage as long as trade relations remain stable; if the operating cost benefit is structural, the concentration is a feature the market may already be crediting. | ||
Four consecutive earnings beats — including a 15.3% positive surprise two quarters ago and an average quarterly beat of 7.1% — reflect a business that has consistently outperformed consensus expectations across varying operating environments.
→StableEarnings
- Expectation
- The upcoming earnings report in 9 days delivers a fifth consecutive beat, extending the positive-surprise streak.
CounterThe beat streak has been accompanied by an implied volatility at 63%, meaning the market is already pricing in a meaningful move; a smaller-than-expected beat or an in-line result could disappoint on the options-implied bar, triggering a sell-the-news reaction.
A perfect Piotroski F-Score of 9 out of 9 indicates the business is simultaneously improving profitability, leverage, and operating efficiency — a rare combination that historically correlates with sustained outperformance.
→StableQuality breakdown
- Expectation
- Piotroski F-Score remains at 8 or above over the next 4 quarters, reflecting continued operating discipline.
CounterA sole-source supplier situation flagged in company disclosures represents a supply-chain fragility that the Piotroski score cannot capture; a disruption to a critical input source could rapidly impair the operating metrics that currently earn the high score.
A death cross — where the 50-day moving average crosses below the 200-day — has triggered a hard technical block, and the stock sits below its long-term trend line with a flat moving-average slope, signaling the price action does not yet support adding exposure.
→StableEngine gate (failed)
- Expectation
- The 50-day moving average crosses back above the 200-day (a golden cross) within the next 3 months, removing the technical overhang.
CounterA death cross is a lagging signal, and with earnings 9 days away carrying a perfect beat streak, a strong result could catalyze a sharp recovery that quickly resolves the technical pattern.
A 55% geographic concentration in Mexico for manufacturing exposes the company to tariff, currency, and supply-chain disruptions that are largely outside management's control and that the current valuation may not adequately discount.
→StableBear case
- Expectation
- Mexico manufacturing concentration decreases below 40% of total production within 24 months, reflecting supply-chain diversification that reduces the binary policy risk.
CounterHigh concentration in a single low-cost manufacturing hub can be a competitive cost advantage as long as trade relations remain stable; if the operating cost benefit is structural, the concentration is a feature the market may already be crediting.
Per-dimension breakdown
Quality
6.4/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 5.3 |
| ROA | 5.6 |
| Gross margin | 5.7 |
| Op margin | 5.2 |
| Net margin | 4.7 |
| Current ratio | 7.2 |
| FCF quality | 7.0 |
| Moat | 6.5 |
| Piotroski F | 10.0 |
- ▸Strong Piotroski F-Score: 9/9
Growth
5.5/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 3.7 |
| EPS growth | 7.2 |
Momentum
6.6/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 10.0 |
| OBV | 10.0 |
| MA position | 8.0 |
| Volume | 0.1 |
- ▸Volume accumulation (rising OBV)
- ▸Above 200-MA but MA slope flat
Sentiment
5.7/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 5.3 |
| Analyst rating | 6.8 |
| Price target | 4.7 |
- ▸Light analyst coverage (8.0) — signal dampened
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.1 |
- ▸Negligible insider selling — $288,573 (0.003% of mkt cap)
Peer rank
3.8/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 7.7 |
| quality rank | 5.9 |
| growth rank | 1.7 |
Technical
3.1/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 0.0 |
| support resistance | 0.3 |
| 52w position | 9.0 |
| gap | 3.0 |
- ▸Extreme gap up (14.5%) - may pull back
Risk (lower is worse)
5.9/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 7.5 |
| days to cover | 6.5 |
| volatility | 1.4 |
| put call | 5.7 |
| implied vol | 5.7 |
| beta | 5.7 |
| debt equity | 8.9 |
- ▸Concentration risks: 2 HIGH (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
6.6/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| surprise avg | 4.7 |
| dividend safety | 5.2 |
| news activity | 8.0 |
- ▸Strong earnings: 3B/0M
- ▸Dividend: 24.0%
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (6)
- MOMENTUM:6.6>=5.5
- INSIDER:OK
- 8K:CLEAN
- EARNINGS_PROXIMITY:NO_DATE
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- ASYMMETRY:-1.0=NEGATIVE
Warning (1)
- DEATH_CROSS:momentum=6.6>=5.0 recovering
Reward-to-Risk
-0.98
Upside
-14.8%
Downside
15.0%
Sizing output
AVOID
SetupMOMENTUM_CONT — Trend continuation, RSI 66, MACD bullish
EdgeNO_EDGE — No clear edge identified
SuitabilityAGGRESSIVE — Beta 1.32>1.3
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: MOMENTUM:6.6>=5.5. Top dim: Momentum at 6.6; weakest: Technical at 3.1. No conviction either direction.
The strongest dimensions are Momentum at 6.6, Catalyst at 6.6, and Quality at 6.4; the weakest are Technical at 3.1, Peer rank at 3.8, and Insider at 5.0. The V9 engine flagged 1 failed gate with 1 warning, producing an asymmetric reward-to-risk of -0.98 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Four consecutive earnings beats — including a 15.3% positive surprise two quarters ago and an average quarterly beat of 7.1% — reflect a business that has consistently outperformed consensus expectations across varying operating environments.
Trip ifEPS surprise falls below 0% for 2 consecutive quarters, breaking the beat streak.
- P2A perfect Piotroski F-Score of 9 out of 9 indicates the business is simultaneously improving profitability, leverage, and operating efficiency — a rare combination that historically correlates with sustained outperformance.
Trip ifPiotroski F-Score falls below 7 for 2 consecutive reporting periods.
- P3A death cross — where the 50-day moving average crosses below the 200-day — has triggered a hard technical block, and the stock sits below its long-term trend line with a flat moving-average slope, signaling the price action does not yet support adding exposure.
Trip ifThe 50-day moving average crosses above the 200-day moving average, confirming a golden cross and removing the technical block.
- P4A 55% geographic concentration in Mexico for manufacturing exposes the company to tariff, currency, and supply-chain disruptions that are largely outside management's control and that the current valuation may not adequately discount.
Trip ifMexico manufacturing exposure falls below 40% of total production for 2 consecutive quarters, signaling successful diversification.