APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIT - US03820C1053 - Common Stock
281.21 USD
-1.26 (-0.45%)
281.21 USD
0 (0%)
Overall AIT gets a fundamental rating of 7 out of 10. We evaluated AIT 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. While showing a medium growth rate, AIT is valued expensive at the moment.
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.
- In the past 5 years AIT always reported a positive cash flow from operatings.
1.2 Ratios
- AIT has a Return On Assets of 12.61%. This is amongst the best in the industry. AIT outperforms 96.00% of its industry peers.
- AIT has a better Return On Equity (21.33%) than 80.00% of its industry peers.
- With an excellent Return On Invested Capital value of 14.92%, AIT belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
- 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
- AIT has a Profit Margin of 8.61%. This is in the better half of the industry: AIT outperforms 74.00% of its industry peers.
- In the last couple of years the Profit Margin of AIT has grown nicely.
- AIT has a Operating Margin of 11.03%. This is in the better half of the industry: AIT outperforms 72.00% of its industry peers.
- AIT's Operating Margin has improved in the last couple of years.
- AIT has a Gross Margin (30.44%) which is comparable to the rest of the 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
- AIT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
- An Altman-Z score of 8.51 indicates that AIT is not in any danger for bankruptcy at the moment.
- AIT's Altman-Z score of 8.51 is amongst the best of the industry. AIT outperforms 92.00% of its industry peers.
- The Debt to FCF ratio of AIT is 1.26, which is an excellent value as it means it would take AIT, only 1.26 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.26, AIT belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.30 indicates that AIT is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.30, AIT is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 8.51 |
ROIC/WACC1.53
WACC9.73%
2.3 Liquidity
- AIT has a Current Ratio of 3.55. This indicates that AIT is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 3.55, AIT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- AIT has a Quick Ratio of 2.50. This indicates that AIT is financially healthy and has no problem in meeting 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
- Looking at the last year, AIT shows a small growth in Revenue. The Revenue has grown by 4.03% in the last year.
- Measured over the past years, AIT shows a small growth in Revenue. The Revenue has been growing by 7.05% on average per year.
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.
- Based on estimates for the next years, AIT will show a small growth in Revenue. The Revenue will grow by 5.55% on average per year.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 27.07 indicates a quite expensive valuation of AIT.
- AIT's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of AIT to the average of the S&P500 Index (27.47), we can say AIT is valued inline with the index average.
- The Price/Forward Earnings ratio is 24.02, which indicates a rather expensive current valuation of AIT.
- AIT's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. AIT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.07 | ||
| Fwd PE | 24.02 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as AIT.
- Based on the Price/Free Cash Flow ratio, AIT is valued a bit cheaper than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.31 | ||
| EV/EBITDA | 18.7 |
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)4.16
PEG (5Y)1.25
EPS Next 2Y7.55%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.65%, AIT is not a good candidate for dividend investing.
- AIT's Dividend Yield is comparable with the industry average which is at 1.35.
- Compared to an average S&P500 Dividend Yield of 1.89, AIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 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.
- The dividend of AIT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.64%
EPS Next 2Y7.55%
EPS Next 3Y8.12%
281.21
-1.26 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)01-27 2026-01-27
Inst Owners95.71%
Inst Owner Change0.12%
Ins Owners0.84%
Ins Owner Change-2.59%
Market Cap10.61B
Revenue(TTM)4.66B
Net Income(TTM)401.73M
Analysts81.54
Price Target302.35 (7.52%)
Short Float %2.49%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.07 | ||
| Fwd PE | 24.02 | ||
| P/S | 2.27 | ||
| P/FCF | 23.31 | ||
| P/OCF | 21.92 | ||
| P/B | 5.63 | ||
| P/tB | 12.55 | ||
| EV/EBITDA | 18.7 |
EPS(TTM)10.39
EY3.69%
EPS(NY)11.71
Fwd EY4.16%
FCF(TTM)12.06
FCFY4.29%
OCF(TTM)12.83
OCFY4.56%
SpS123.65
BVpS49.94
TBVpS22.4
PEG (NY)4.16
PEG (5Y)1.25
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 | 8.51 |
F-Score6
WACC9.73%
ROIC/WACC1.53
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%.