📊 AI Stock Rating — Summary

For the quarter ended November 30, 2025, AYI reported revenue of $1.14 billion and net income of $120.5 million, resulting in an EPS of $3.92. The net margin was strong at approximately 10.5%. Free cash flow stood at $114.8 million, showcasing healthy conversion from earnings. Year-over-year growth trends were stable, albeit with modest improvement prospects considering broader industry patterns. The company maintains a robust balance sheet with total assets of $4.65 billion and equity of $2.79 billion, suggesting financial stability. Net debt is currently $534 million, manageable relative to equity. Cash flow shows strong operational capacity with operating cash flow at $140.8 million, supporting a solid free cash flow despite a capital expenditure of $26 million. AYI continues modest shareholder return practices with dividends and share buybacks, and existing analyst targets suggest potential market upside. Valuation ratios such as P/E were not available at the valuation date but remain critical for market positioning analyses.

AI Score Breakdown

Revenue Growth — Score: 6/10

AYI's revenue remains stable with slight year-over-year growth. Primary drivers include steady demand in lighting solutions, although significant catalyst announcements were absent.

Profitability — Score: 8/10

AYI operates with strong profitability metrics, evidenced by a net margin of 10.5% and an EPS of $3.92, showing efficient cost management and product margin retention.

Cash Flow Quality — Score: 7/10

Free cash flow of $114.8 million indicates solid cash generation. Dividends and buybacks are modest, but cash reserves position AYI well for potential investments or debt servicing.

Leverage & Balance Sheet — Score: 8/10

Balance sheet strength is reflected in low net debt levels relative to equity and a significant asset base, suggesting durability in financial health.

Shareholder Returns — Score: 5/10

Dividends and share buybacks offer some returns, yet are conservative. Share price performance over the recent period wasn't provided, but attention to market rally potential based on analyst targets is advised.

Analyst Sentiment & Valuation — Score: 7/10

Analyst price targets ranging from $360 to $425 suggest cautious optimism, indicating potential upside. Valuation metrics at the time weren't detailed, but price targets provide a favorable outlook.

⚠ AI-generated — informational only, not financial advice.