APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - NYSE:AIT - US03820C1053 - Common Stock
248.96 USD
-1.93 (-0.77%)
248.96 USD
0 (0%)
Overall AIT gets a fundamental rating of 7 out of 10. We evaluated AIT against 51 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. 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.
In the past 5 years AIT has always been profitable.
AIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AIT has a better Return On Assets (12.61%) than 96.08% of its industry peers.
The Return On Equity of AIT (21.33%) is better than 80.39% of its industry peers.
The Return On Invested Capital of AIT (14.92%) is better than 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 10.12%.
| 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.
The Operating Margin of AIT (11.03%) is better than 74.51% of its industry peers.
In the last couple of years the Operating Margin of AIT has grown nicely.
AIT has a Gross Margin (30.44%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AIT is still 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
AIT has an Altman-Z score of 7.96. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
AIT has a better Altman-Z score (7.96) than 94.12% 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 has a better Debt to FCF ratio (1.26) than 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.
AIT has a Debt to Equity ratio of 0.30. This is in the better half of the industry: AIT outperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 7.96 |
ROIC/WACC1.62
WACC9.21%
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.
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.
AIT has a better Quick ratio (2.50) than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.55 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.02% over the past year.
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.
The Revenue has been growing slightly by 7.05% on average over the past years.
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.
The Revenue is expected to grow by 5.22% on average over the next years.
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
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
The Price/Earnings ratio is 23.96, which indicates a rather expensive current valuation of AIT.
The rest of the industry has a similar Price/Earnings ratio as AIT.
AIT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.27 indicates a rather expensive valuation of AIT.
The rest of the industry has a similar Price/Forward Earnings ratio as AIT.
When comparing the Price/Forward Earnings ratio of AIT to the average of the S&P500 Index (34.59), we can say AIT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 21.27 |
4.2 Price Multiples
AIT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AIT is more expensive than 60.78% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIT indicates a somewhat cheap valuation: AIT is cheaper than 70.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.65 | ||
| EV/EBITDA | 16.65 |
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)3.68
PEG (5Y)1.11
EPS Next 2Y7.55%
EPS Next 3Y8.22%
5. Dividend
5.1 Amount
AIT has a yearly dividend return of 0.71%, which is pretty low.
AIT's Dividend Yield is comparable with the industry average which is at 2.24.
Compared to an average S&P500 Dividend Yield of 2.36, AIT's dividend is way lower than the S&P500 average.
| 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.
AIT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.64%
EPS Next 2Y7.55%
EPS Next 3Y8.22%
248.96
-1.93 (-0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change-1.33%
Ins Owners0.84%
Ins Owner Change-2.59%
Market Cap9.40B
Revenue(TTM)4.66B
Net Income(TTM)401.73M
Analysts81.54
Price Target301.71 (21.19%)
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)5.51%
EPS NQ rev (1m)-2.81%
EPS NQ rev (3m)-2.29%
EPS NY rev (1m)1.03%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 21.27 | ||
| P/S | 2.02 | ||
| P/FCF | 20.65 | ||
| P/OCF | 19.42 | ||
| P/B | 4.99 | ||
| P/tB | 11.12 | ||
| EV/EBITDA | 16.65 |
EPS(TTM)10.39
EY4.17%
EPS(NY)11.71
Fwd EY4.7%
FCF(TTM)12.05
FCFY4.84%
OCF(TTM)12.82
OCFY5.15%
SpS123.55
BVpS49.9
TBVpS22.38
PEG (NY)3.68
PEG (5Y)1.11
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 | 7.96 |
F-Score6
WACC9.21%
ROIC/WACC1.62
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 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.
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 23.96 and the Price/Book (PB) ratio is 4.99.
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.