APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - NYSE:AIT - US03820C1053 - Common Stock
263.19 USD
-6.49 (-2.41%)
263.19 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to AIT. AIT was compared to 50 industry peers in the Trading Companies & Distributors industry. AIT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AIT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AIT was profitable.
AIT had a positive operating cash flow in the past year.
Each year in the past 5 years AIT has been profitable.
Each year in the past 5 years AIT had a positive operating cash flow.
1.2 Ratios
AIT has a better Return On Assets (12.38%) than 96.00% of its industry peers.
With a decent Return On Equity value of 21.31%, AIT is doing good in the industry, outperforming 78.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.67%, AIT belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AIT is significantly above the industry average of 9.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 21.31% | ||
| ROIC | 14.67% |
ROA(3y)12.69%
ROA(5y)10.99%
ROE(3y)22.64%
ROE(5y)21.17%
ROIC(3y)15.73%
ROIC(5y)14.51%
1.3 Margins
With a decent Profit Margin value of 8.61%, AIT is doing good in the industry, outperforming 78.00% of the companies in the same industry.
AIT's Profit Margin has improved in the last couple of years.
AIT has a better Operating Margin (10.92%) than 74.00% of its industry peers.
In the last couple of years the Operating Margin of AIT has grown nicely.
AIT has a Gross Margin (30.31%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of AIT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.92% | ||
| PM (TTM) | 8.61% | ||
| GM | 30.31% |
OM growth 3Y5.17%
OM growth 5Y9.14%
PM growth 3Y8.43%
PM growth 5Y63.39%
GM growth 3Y1.43%
GM growth 5Y0.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AIT is creating some value.
AIT has less shares outstanding than it did 1 year ago.
AIT has less shares outstanding than it did 5 years ago.
AIT has a better debt/assets ratio than last year.
2.2 Solvency
AIT has an Altman-Z score of 8.08. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
AIT has a better Altman-Z score (8.08) than 94.00% of its industry peers.
The Debt to FCF ratio of AIT is 1.23, which is an excellent value as it means it would take AIT, only 1.23 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.23, AIT belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that AIT is not too dependend on debt financing.
AIT's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. AIT outperforms 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 8.08 |
ROIC/WACC1.54
WACC9.5%
2.3 Liquidity
AIT has a Current Ratio of 3.32. This indicates that AIT is financially healthy and has no problem in meeting its short term obligations.
AIT has a better Current ratio (3.32) than 84.00% of its industry peers.
A Quick Ratio of 2.36 indicates that AIT has no problem at all paying its short term obligations.
AIT has a Quick ratio of 2.36. This is amongst the best in the industry. AIT outperforms 86.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
AIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.95%.
Measured over the past years, AIT shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.58% on average per year.
AIT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.88%.
AIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.05% yearly.
EPS 1Y (TTM)2.95%
EPS 3Y14.97%
EPS 5Y21.58%
EPS Q2Q%6.06%
Revenue 1Y (TTM)1.88%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%5.52%
3.2 Future
Based on estimates for the next years, AIT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.36% on average per year.
Based on estimates for the next years, AIT will show a small growth in Revenue. The Revenue will grow by 5.25% on average per year.
EPS Next Y5.52%
EPS Next 2Y7.34%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue Next Year6.76%
Revenue Next 2Y6.19%
Revenue Next 3Y5.25%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 26.01, which means the current valuation is very expensive for AIT.
AIT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, AIT is valued at the same level.
With a Price/Forward Earnings ratio of 24.65, AIT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AIT is valued a bit more expensive than the industry average as 62.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.73. AIT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.01 | ||
| Fwd PE | 24.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIT is valued a bit more expensive than 60.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AIT is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.36 | ||
| EV/EBITDA | 18.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AIT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.71
PEG (5Y)1.21
EPS Next 2Y7.34%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, AIT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.69, AIT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, AIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of AIT has a limited annual growth rate of 5.71%.
AIT has paid a dividend for at least 10 years, which is a reliable track record.
AIT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.71%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
AIT pays out 16.21% of its income as dividend. This is a sustainable payout ratio.
AIT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.21%
EPS Next 2Y7.34%
EPS Next 3Y8.36%
263.19
-6.49 (-2.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners98.69%
Inst Owner Change-3.94%
Ins Owners0.87%
Ins Owner Change-2.59%
Market Cap9.94B
Analysts81.54
Price Target299.35 (13.74%)
Short Float %2.14%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.67
Dividend Growth(5Y)5.71%
DP16.21%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.6%
Min EPS beat(2)5.58%
Max EPS beat(2)5.61%
EPS beat(4)4
Avg EPS beat(4)5.46%
Min EPS beat(4)3.74%
Max EPS beat(4)6.89%
EPS beat(8)8
Avg EPS beat(8)6.3%
EPS beat(12)12
Avg EPS beat(12)9.37%
EPS beat(16)16
Avg EPS beat(16)12.08%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)2.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)2.49%
Revenue beat(8)3
Avg Revenue beat(8)-0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.92%
Revenue beat(16)11
Avg Revenue beat(16)1.63%
PT rev (1m)5.62%
PT rev (3m)5.62%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)2.48%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.01 | ||
| Fwd PE | 24.65 | ||
| P/S | 2.18 | ||
| P/FCF | 21.36 | ||
| P/OCF | 20.18 | ||
| P/B | 5.39 | ||
| P/tB | 12.47 | ||
| EV/EBITDA | 18.54 |
EPS(TTM)10.12
EY3.85%
EPS(NY)10.68
Fwd EY4.06%
FCF(TTM)12.32
FCFY4.68%
OCF(TTM)13.04
OCFY4.96%
SpS120.89
BVpS48.86
TBVpS21.1
PEG (NY)4.71
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 21.31% | ||
| ROCE | 18.82% | ||
| ROIC | 14.67% | ||
| ROICexc | 17.19% | ||
| ROICexgc | 32.03% | ||
| OM | 10.92% | ||
| PM (TTM) | 8.61% | ||
| GM | 30.31% | ||
| FCFM | 10.19% |
ROA(3y)12.69%
ROA(5y)10.99%
ROE(3y)22.64%
ROE(5y)21.17%
ROIC(3y)15.73%
ROIC(5y)14.51%
ROICexc(3y)18.81%
ROICexc(5y)17.03%
ROICexgc(3y)33.89%
ROICexgc(5y)31.67%
ROCE(3y)20.18%
ROCE(5y)18.62%
ROICexcg growth 3Y3.11%
ROICexcg growth 5Y4.82%
ROICexc growth 3Y2.9%
ROICexc growth 5Y8.88%
OM growth 3Y5.17%
OM growth 5Y9.14%
PM growth 3Y8.43%
PM growth 5Y63.39%
GM growth 3Y1.43%
GM growth 5Y0.88%
F-Score6
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.23 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 44.95% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 22.84 | ||
| Cash Conversion | 88.08% | ||
| Profit Quality | 118.38% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 8.08 |
F-Score6
WACC9.5%
ROIC/WACC1.54
Cap/Depr(3y)47.45%
Cap/Depr(5y)40.98%
Cap/Sales(3y)0.58%
Cap/Sales(5y)0.54%
Profit Quality(3y)99.93%
Profit Quality(5y)104.31%
High Growth Momentum
Growth
EPS 1Y (TTM)2.95%
EPS 3Y14.97%
EPS 5Y21.58%
EPS Q2Q%6.06%
EPS Next Y5.52%
EPS Next 2Y7.34%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue 1Y (TTM)1.88%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%5.52%
Revenue Next Year6.76%
Revenue Next 2Y6.19%
Revenue Next 3Y5.25%
Revenue Next 5YN/A
EBIT growth 1Y0.54%
EBIT growth 3Y11.68%
EBIT growth 5Y16.83%
EBIT Next Year22.33%
EBIT Next 3Y11.74%
EBIT Next 5YN/A
FCF growth 1Y34.24%
FCF growth 3Y40.01%
FCF growth 5Y10.96%
OCF growth 1Y32.58%
OCF growth 3Y37.94%
OCF growth 5Y10.66%