APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIT - US03820C1053 - Common Stock
256.77 USD
-4.39 (-1.68%)
256.77 USD
0 (0%)
AIT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. AIT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AIT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AIT was profitable.
In the past year AIT had a positive cash flow from operations.
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's Return On Assets of 12.61% is amongst the best of the industry. AIT outperforms 96.00% of its industry peers.
AIT's Return On Equity of 21.33% is fine compared to the rest of the industry. AIT outperforms 80.00% of its industry peers.
AIT's Return On Invested Capital of 14.92% is amongst the best of the industry. AIT outperforms 88.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AIT is significantly above the industry average of 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.61% | ||
| ROE | 21.33% | ||
| ROIC | 14.92% |
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
Looking at the Profit Margin, with a value of 8.61%, AIT is in the better half of the industry, outperforming 74.00% 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 (11.03%) than 72.00% of its industry peers.
In the last couple of years the Operating Margin of AIT has grown nicely.
With a Gross Margin value of 30.44%, AIT perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
AIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.03% | ||
| PM (TTM) | 8.61% | ||
| GM | 30.44% |
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.
The number of shares outstanding for AIT has been reduced compared to 1 year ago.
Compared to 5 years ago, AIT has less shares outstanding
Compared to 1 year ago, AIT has an improved debt to assets ratio.
2.2 Solvency
AIT has an Altman-Z score of 8.14. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AIT (8.14) is better than 90.00% of its industry peers.
AIT has a debt to FCF ratio of 1.26. This is a very positive value and a sign of high solvency as it would only need 1.26 years to pay back of all of its debts.
AIT's Debt to FCF ratio of 1.26 is amongst the best of the industry. AIT outperforms 86.00% of its industry peers.
AIT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.30, AIT is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 8.14 |
ROIC/WACC1.55
WACC9.62%
2.3 Liquidity
A Current Ratio of 3.55 indicates that AIT has no problem at all paying its short term obligations.
AIT has a better Current ratio (3.55) than 80.00% of its industry peers.
A Quick Ratio of 2.50 indicates that AIT has no problem at all paying its short term obligations.
AIT has a better Quick ratio (2.50) than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
AIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.02%.
The Earnings Per Share has been growing by 21.58% on average over the past years. This is a very strong growth
AIT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.03%.
AIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.05% yearly.
EPS 1Y (TTM)6.02%
EPS 3Y14.97%
EPS 5Y21.58%
EPS Q2Q%11.44%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%9.15%
3.2 Future
The Earnings Per Share is expected to grow by 8.12% on average over the next years. This is quite good.
AIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
EPS Next Y6.51%
EPS Next 2Y7.55%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue Next Year7.46%
Revenue Next 2Y6.38%
Revenue Next 3Y5.55%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
AIT is valuated rather expensively with a Price/Earnings ratio of 24.71.
The rest of the industry has a similar Price/Earnings ratio as AIT.
Compared to an average S&P500 Price/Earnings ratio of 26.51, AIT is valued at the same level.
A Price/Forward Earnings ratio of 21.94 indicates a rather expensive valuation of AIT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIT is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.13. AIT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.71 | ||
| Fwd PE | 21.94 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than AIT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AIT is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.29 | ||
| EV/EBITDA | 17.31 |
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)3.8
PEG (5Y)1.15
EPS Next 2Y7.55%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, AIT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.98, AIT has a dividend in line with its industry peers.
With a Dividend Yield of 0.70, AIT pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of AIT has a limited annual growth rate of 5.71%.
AIT has been paying a dividend for at least 10 years, so it has a reliable track record.
AIT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.71%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
AIT pays out 16.64% 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.
DP16.64%
EPS Next 2Y7.55%
EPS Next 3Y8.12%
256.77
-4.39 (-1.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.01%
Inst Owner Change-0.53%
Ins Owners0.84%
Ins Owner Change-2.59%
Market Cap9.69B
Revenue(TTM)4.66B
Net Income(TTM)401.73M
Analysts81.54
Price Target302.35 (17.75%)
Short Float %2.49%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend1.67
Dividend Growth(5Y)5.71%
DP16.64%
Div Incr Years15
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.25%
Min EPS beat(2)4.89%
Max EPS beat(2)5.61%
EPS beat(4)4
Avg EPS beat(4)5.74%
Min EPS beat(4)4.89%
Max EPS beat(4)6.89%
EPS beat(8)8
Avg EPS beat(8)5.29%
EPS beat(12)12
Avg EPS beat(12)8.16%
EPS beat(16)16
Avg EPS beat(16)11.63%
Revenue beat(2)1
Avg Revenue beat(2)1.22%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)2.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)2.49%
Revenue beat(8)3
Avg Revenue beat(8)-0.32%
Revenue beat(12)6
Avg Revenue beat(12)0.38%
Revenue beat(16)10
Avg Revenue beat(16)1.58%
PT rev (1m)0%
PT rev (3m)1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.81%
EPS NY rev (1m)0%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.71 | ||
| Fwd PE | 21.94 | ||
| P/S | 2.08 | ||
| P/FCF | 21.29 | ||
| P/OCF | 20.01 | ||
| P/B | 5.14 | ||
| P/tB | 11.46 | ||
| EV/EBITDA | 17.31 |
EPS(TTM)10.39
EY4.05%
EPS(NY)11.71
Fwd EY4.56%
FCF(TTM)12.06
FCFY4.7%
OCF(TTM)12.83
OCFY5%
SpS123.65
BVpS49.94
TBVpS22.4
PEG (NY)3.8
PEG (5Y)1.15
Graham Number108.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.61% | ||
| ROE | 21.33% | ||
| ROCE | 19.14% | ||
| ROIC | 14.92% | ||
| ROICexc | 17.67% | ||
| ROICexgc | 32.59% | ||
| OM | 11.03% | ||
| PM (TTM) | 8.61% | ||
| GM | 30.44% | ||
| FCFM | 9.76% |
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%
ROICexgc growth 3Y3.11%
ROICexgc 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 Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 45.47% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.72% | ||
| Profit Quality | 113.26% | ||
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.5 | ||
| Altman-Z | 8.14 |
F-Score6
WACC9.62%
ROIC/WACC1.55
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)6.02%
EPS 3Y14.97%
EPS 5Y21.58%
EPS Q2Q%11.44%
EPS Next Y6.51%
EPS Next 2Y7.55%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue 1Y (TTM)4.03%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%9.15%
Revenue Next Year7.46%
Revenue Next 2Y6.38%
Revenue Next 3Y5.55%
Revenue Next 5YN/A
EBIT growth 1Y5.34%
EBIT growth 3Y11.68%
EBIT growth 5Y16.83%
EBIT Next Year21.54%
EBIT Next 3Y11.32%
EBIT Next 5YN/A
FCF growth 1Y26.71%
FCF growth 3Y40.01%
FCF growth 5Y10.96%
OCF growth 1Y25.93%
OCF growth 3Y37.94%
OCF growth 5Y10.66%
APPLIED INDUSTRIAL TECH INC / AIT FAQ
Can you provide the ChartMill fundamental rating for APPLIED INDUSTRIAL TECH INC?
ChartMill assigns a fundamental rating of 7 / 10 to AIT.
Can you provide the valuation status for APPLIED INDUSTRIAL TECH INC?
ChartMill assigns a valuation rating of 3 / 10 to APPLIED INDUSTRIAL TECH INC (AIT). This can be considered as Overvalued.
How profitable is APPLIED INDUSTRIAL TECH INC (AIT) stock?
APPLIED INDUSTRIAL TECH INC (AIT) has a profitability rating of 8 / 10.
Can you provide the financial health for AIT stock?
The financial health rating of APPLIED INDUSTRIAL TECH INC (AIT) is 9 / 10.
How sustainable is the dividend of APPLIED INDUSTRIAL TECH INC (AIT) stock?
The dividend rating of APPLIED INDUSTRIAL TECH INC (AIT) is 5 / 10 and the dividend payout ratio is 16.64%.