APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - NYSE:AIT - US03820C1053 - Common Stock
256.505 USD
-3.16 (-1.22%)
AIT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 51 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
AIT had positive earnings in the past year.
In the past year AIT had a positive cash flow from operations.
AIT had positive earnings in each of the past 5 years.
AIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.61%, AIT belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
With a decent Return On Equity value of 21.33%, AIT is doing good in the industry, outperforming 78.43% of the companies in the same industry.
AIT has a Return On Invested Capital of 14.92%. This is amongst the best in the industry. AIT outperforms 86.27% of its industry peers.
AIT had an Average Return On Invested Capital over the past 3 years of 15.73%. This is significantly above the industry average of 10.20%.
| 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's Profit Margin of 8.61% is fine compared to the rest of the industry. AIT outperforms 78.43% of its industry peers.
In the last couple of years the Profit Margin of AIT has grown nicely.
AIT has a better Operating Margin (11.03%) than 74.51% of its industry peers.
In the last couple of years the Operating Margin of AIT has grown nicely.
The Gross Margin of AIT (30.44%) 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 | 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.
Compared to 1 year ago, AIT has less shares outstanding
The number of shares outstanding for AIT has been reduced compared to 5 years ago.
AIT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.11 indicates that AIT is not in any danger for bankruptcy at the moment.
AIT's Altman-Z score of 8.11 is amongst the best of the industry. AIT outperforms 94.12% 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.
AIT's Debt to FCF ratio of 1.26 is amongst the best of the industry. AIT outperforms 84.31% 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.
The Debt to Equity ratio of AIT (0.30) is better than 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 8.11 |
ROIC/WACC1.6
WACC9.31%
2.3 Liquidity
A Current Ratio of 3.55 indicates that AIT has no problem at all paying its short term obligations.
The Current ratio of AIT (3.55) is better than 80.39% of its industry peers.
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.
The Quick ratio of AIT (2.50) is better than 88.24% 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
The Revenue has been growing slightly by 4.03% in the past year.
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
AIT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.22% yearly.
AIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.22% yearly.
EPS Next Y6.51%
EPS Next 2Y7.55%
EPS Next 3Y8.22%
EPS Next 5YN/A
Revenue Next Year7.44%
Revenue Next 2Y6.36%
Revenue Next 3Y5.22%
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
Based on the Price/Earnings ratio of 24.69, the valuation of AIT can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as AIT.
The average S&P500 Price/Earnings ratio is at 25.67. AIT is around the same levels.
A Price/Forward Earnings ratio of 21.91 indicates a rather expensive valuation of AIT.
AIT's Price/Forward Earnings is on the same level as the industry average.
AIT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 21.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIT is valued a bit more expensive than the industry average as 60.78% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIT indicates a somewhat cheap valuation: AIT is cheaper than 72.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.28 | ||
| EV/EBITDA | 17.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AIT does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AIT may justify a higher PE ratio.
PEG (NY)3.79
PEG (5Y)1.14
EPS Next 2Y7.55%
EPS Next 3Y8.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, AIT is not a good candidate for dividend investing.
AIT's Dividend Yield is comparable with the industry average which is at 1.94.
With a Dividend Yield of 0.71, AIT pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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
16.64% of the earnings are spent on dividend by AIT. This is a low number and 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 3Y8.22%
NYSE:AIT (11/7/2025, 1:24:07 PM)
256.505
-3.16 (-1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change-0.63%
Ins Owners0.84%
Ins Owner Change-2.59%
Market Cap9.68B
Revenue(TTM)4.66B
Net Income(TTM)401.73M
Analysts81.54
Price Target301.71 (17.62%)
Short Float %1.94%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.67
Dividend Growth(5Y)5.71%
DP16.64%
Div Incr Years15
Div Non Decr Years34
Ex-Date
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)0.79%
PT rev (3m)6.45%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 21.91 | ||
| P/S | 2.08 | ||
| P/FCF | 21.28 | ||
| P/OCF | 20.01 | ||
| P/B | 5.14 | ||
| P/tB | 11.46 | ||
| EV/EBITDA | 17.22 |
EPS(TTM)10.39
EY4.05%
EPS(NY)11.71
Fwd EY4.56%
FCF(TTM)12.05
FCFY4.7%
OCF(TTM)12.82
OCFY5%
SpS123.55
BVpS49.9
TBVpS22.38
PEG (NY)3.79
PEG (5Y)1.14
Graham Number108.01
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 | 8.11 |
F-Score6
WACC9.31%
ROIC/WACC1.6
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 3Y8.22%
EPS Next 5YN/A
Revenue 1Y (TTM)4.03%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%9.15%
Revenue Next Year7.44%
Revenue Next 2Y6.36%
Revenue Next 3Y5.22%
Revenue Next 5YN/A
EBIT growth 1Y5.34%
EBIT growth 3Y11.68%
EBIT growth 5Y16.83%
EBIT Next Year21.63%
EBIT Next 3Y11.31%
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.
What is the valuation status of APPLIED INDUSTRIAL TECH INC (AIT) stock?
ChartMill assigns a valuation rating of 4 / 10 to APPLIED INDUSTRIAL TECH INC (AIT). This can be considered as Fairly Valued.
How profitable is APPLIED INDUSTRIAL TECH INC (AIT) stock?
APPLIED INDUSTRIAL TECH INC (AIT) has a profitability rating of 8 / 10.
What is the valuation of APPLIED INDUSTRIAL TECH INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for APPLIED INDUSTRIAL TECH INC (AIT) is 24.69 and the Price/Book (PB) ratio is 5.14.
Can you provide the expected EPS growth for AIT stock?
The Earnings per Share (EPS) of APPLIED INDUSTRIAL TECH INC (AIT) is expected to grow by 6.51% in the next year.