ALBANY INTL CORP-CL A (AIN) Stock Fundamental Analysis
NYSE:AIN - New York Stock Exchange, Inc. - US0123481089 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AIN. AIN was compared to 127 industry peers in the Machinery industry. AIN has an excellent financial health rating, but there are some minor concerns on its profitability. AIN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AIN had positive earnings in the past year.
AIN had a positive operating cash flow in the past year.
Each year in the past 5 years AIN has been profitable.
In the past 5 years AIN always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.60%, AIN perfoms like the industry average, outperforming 48.82% of the companies in the same industry.
AIN has a Return On Equity (8.63%) which is in line with its industry peers.
AIN has a Return On Invested Capital (6.57%) which is comparable to the rest of the industry.
AIN had an Average Return On Invested Capital over the past 3 years of 8.07%. This is below the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 8.63% | ||
| ROIC | 6.57% |
ROA(3y)5.73%
ROA(5y)6.24%
ROE(3y)10.65%
ROE(5y)11.52%
ROIC(3y)8.07%
ROIC(5y)8.6%
1.3 Margins
The Profit Margin of AIN (6.44%) is comparable to the rest of the industry.
AIN's Profit Margin has declined in the last couple of years.
AIN has a Operating Margin (11.14%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AIN has declined.
Looking at the Gross Margin, with a value of 32.30%, AIN is in line with its industry, outperforming 52.76% of the companies in the same industry.
AIN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.14% | ||
| PM (TTM) | 6.44% | ||
| GM | 32.3% |
OM growth 3Y-15.2%
OM growth 5Y-8.79%
PM growth 3Y-17.66%
PM growth 5Y-10.73%
GM growth 3Y-7.1%
GM growth 5Y-2.85%
2. Health
2.1 Basic Checks
AIN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AIN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AIN has less shares outstanding
Compared to 1 year ago, AIN has an improved debt to assets ratio.
2.2 Solvency
AIN has an Altman-Z score of 3.87. This indicates that AIN is financially healthy and has little risk of bankruptcy at the moment.
AIN has a better Altman-Z score (3.87) than 64.57% of its industry peers.
AIN has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as AIN would need 2.95 years to pay back of all of its debts.
AIN's Debt to FCF ratio of 2.95 is fine compared to the rest of the industry. AIN outperforms 66.14% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that AIN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, AIN perfoms like the industry average, outperforming 49.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 3.87 |
ROIC/WACC0.69
WACC9.54%
2.3 Liquidity
AIN has a Current Ratio of 3.70. This indicates that AIN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.70, AIN belongs to the top of the industry, outperforming 85.04% of the companies in the same industry.
AIN has a Quick Ratio of 2.92. This indicates that AIN is financially healthy and has no problem in meeting its short term obligations.
AIN has a Quick ratio of 2.92. This is amongst the best in the industry. AIN outperforms 88.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.92 |
3. Growth
3.1 Past
AIN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.74%.
Measured over the past years, AIN shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.01% on average per year.
The Revenue has been growing slightly by 1.17% in the past year.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)-25.74%
EPS 3Y-3.88%
EPS 5Y-5.01%
EPS Q2Q%-18.89%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y9.82%
Revenue growth 5Y3.14%
Sales Q2Q%-7.84%
3.2 Future
The Earnings Per Share is expected to grow by 10.03% on average over the next years. This is quite good.
Based on estimates for the next years, AIN will show a small growth in Revenue. The Revenue will grow by 0.83% on average per year.
EPS Next Y2.35%
EPS Next 2Y10.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.83%
Revenue Next 2Y1.11%
Revenue Next 3Y-0.61%
Revenue Next 5Y0.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.61 indicates a rather expensive valuation of AIN.
The rest of the industry has a similar Price/Earnings ratio as AIN.
AIN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
Based on the Price/Forward Earnings ratio of 17.67, the valuation of AIN can be described as rather expensive.
61.42% of the companies in the same industry are more expensive than AIN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AIN to the average of the S&P500 Index (35.33), we can say AIN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 17.67 |
4.2 Price Multiples
70.87% of the companies in the same industry are more expensive than AIN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AIN is valued a bit cheaper than the industry average as 78.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.52 | ||
| EV/EBITDA | 10.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)9.6
PEG (5Y)N/A
EPS Next 2Y10.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AIN has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.82, AIN pays a bit more dividend than its industry peers.
AIN's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
The dividend of AIN is nicely growing with an annual growth rate of 7.66%!
AIN has been paying a dividend for at least 10 years, so it has a reliable track record.
AIN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.66%
Div Incr Years7
Div Non Decr Years23
5.3 Sustainability
42.23% of the earnings are spent on dividend by AIN. This is a bit on the high side, but may be sustainable.
AIN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP42.23%
EPS Next 2Y10.03%
EPS Next 3YN/A
67.82
-1.71 (-2.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners105.14%
Inst Owner Change0%
Ins Owners0.62%
Ins Owner Change3.97%
Market Cap2.05B
Analysts75
Price Target72.76 (7.28%)
Short Float %2.12%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend1.04
Dividend Growth(5Y)7.66%
DP42.23%
Div Incr Years7
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.48%
Min EPS beat(2)-12.99%
Max EPS beat(2)15.95%
EPS beat(4)2
Avg EPS beat(4)9.9%
Min EPS beat(4)-12.99%
Max EPS beat(4)39.45%
EPS beat(8)5
Avg EPS beat(8)11.86%
EPS beat(12)9
Avg EPS beat(12)14.52%
EPS beat(16)13
Avg EPS beat(16)17.35%
Revenue beat(2)0
Avg Revenue beat(2)-4.09%
Min Revenue beat(2)-5.14%
Max Revenue beat(2)-3.05%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-5.14%
Max Revenue beat(4)3.32%
Revenue beat(8)4
Avg Revenue beat(8)1.06%
Revenue beat(12)8
Avg Revenue beat(12)3.03%
Revenue beat(16)12
Avg Revenue beat(16)3.61%
PT rev (1m)-4.46%
PT rev (3m)-16.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)0.92%
EPS NY rev (3m)-1.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 17.67 | ||
| P/S | 1.7 | ||
| P/FCF | 14.52 | ||
| P/OCF | 9.71 | ||
| P/B | 2.28 | ||
| P/tB | 3 | ||
| EV/EBITDA | 10.76 |
EPS(TTM)3
EY4.42%
EPS(NY)3.84
Fwd EY5.66%
FCF(TTM)4.67
FCFY6.89%
OCF(TTM)6.99
OCFY10.3%
SpS39.94
BVpS29.8
TBVpS22.63
PEG (NY)9.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 8.63% | ||
| ROCE | 9.08% | ||
| ROIC | 6.57% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 8.5% | ||
| OM | 11.14% | ||
| PM (TTM) | 6.44% | ||
| GM | 32.3% | ||
| FCFM | 11.69% |
ROA(3y)5.73%
ROA(5y)6.24%
ROE(3y)10.65%
ROE(5y)11.52%
ROIC(3y)8.07%
ROIC(5y)8.6%
ROICexc(3y)9.38%
ROICexc(5y)10.33%
ROICexgc(3y)11.32%
ROICexgc(5y)12.76%
ROCE(3y)11.15%
ROCE(5y)11.88%
ROICexcg growth 3Y-15.21%
ROICexcg growth 5Y-10.69%
ROICexc growth 3Y-13.54%
ROICexc growth 5Y-9.51%
OM growth 3Y-15.2%
OM growth 5Y-8.79%
PM growth 3Y-17.66%
PM growth 5Y-10.73%
GM growth 3Y-7.1%
GM growth 5Y-2.85%
F-Score4
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 79.21% | ||
| Cap/Sales | 5.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.74% | ||
| Profit Quality | 181.55% | ||
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.92 | ||
| Altman-Z | 3.87 |
F-Score4
WACC9.54%
ROIC/WACC0.69
Cap/Depr(3y)113.45%
Cap/Depr(5y)94.21%
Cap/Sales(3y)7.75%
Cap/Sales(5y)6.75%
Profit Quality(3y)82.39%
Profit Quality(5y)96.94%
High Growth Momentum
Growth
EPS 1Y (TTM)-25.74%
EPS 3Y-3.88%
EPS 5Y-5.01%
EPS Q2Q%-18.89%
EPS Next Y2.35%
EPS Next 2Y10.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.17%
Revenue growth 3Y9.82%
Revenue growth 5Y3.14%
Sales Q2Q%-7.84%
Revenue Next Year-1.83%
Revenue Next 2Y1.11%
Revenue Next 3Y-0.61%
Revenue Next 5Y0.83%
EBIT growth 1Y-20.4%
EBIT growth 3Y-6.88%
EBIT growth 5Y-5.92%
EBIT Next Year64.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y591.37%
FCF growth 3Y-5.73%
FCF growth 5Y0.72%
OCF growth 1Y80%
OCF growth 3Y0.14%
OCF growth 5Y1.74%