APPLIED INDUSTRIAL TECH INC (AIT)
US03820C1053 - Common Stock
AIT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making AIT a very profitable company, without any liquidiy or solvency issues. 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.
Each year in the past 5 years AIT has been profitable.
AIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AIT (12.79%) is better than 95.83% of its industry peers.
With an excellent Return On Equity value of 21.92%, AIT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
AIT has a better Return On Invested Capital (14.94%) than 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AIT is significantly above the industry average of 9.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.79% | ||
| ROE | 21.92% | ||
| ROIC | 14.94% |
ROA(3y)12.07%
ROA(5y)8.73%
ROE(3y)23%
ROE(5y)17.48%
ROIC(3y)15.46%
ROIC(5y)13.38%
1.3 Margins
The Profit Margin of AIT (8.57%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of AIT has grown nicely.
AIT has a better Operating Margin (10.89%) than 68.75% of its industry peers.
In the last couple of years the Operating Margin of AIT has grown nicely.
With a Gross Margin value of 29.82%, AIT perfoms like the industry average, outperforming 43.75% 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 | 10.89% | ||
| PM (TTM) | 8.57% | ||
| GM | 29.82% |
OM growth 3Y10.87%
OM growth 5Y7.5%
PM growth 3Y24.39%
PM growth 5Y15.74%
GM growth 3Y0.8%
GM growth 5Y0.55%
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.
AIT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AIT has less shares outstanding
AIT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.08 indicates that AIT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.08, AIT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
The Debt to FCF ratio of AIT is 1.47, which is an excellent value as it means it would take AIT, only 1.47 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.47, AIT belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that AIT is not too dependend on debt financing.
AIT has a better Debt to Equity ratio (0.33) than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 8.08 |
ROIC/WACC1.3
WACC11.53%
2.3 Liquidity
A Current Ratio of 3.78 indicates that AIT has no problem at all paying its short term obligations.
AIT's Current ratio of 3.78 is amongst the best of the industry. AIT outperforms 89.58% of its industry peers.
AIT has a Quick Ratio of 2.74. This indicates that AIT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.74, AIT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.78 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.83% over the past year.
The Earnings Per Share has been growing by 16.45% on average over the past years. This is quite good.
AIT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.84%.
AIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.22% yearly.
EPS 1Y (TTM)5.83%
EPS 3Y28.07%
EPS 5Y16.45%
EPS Q2Q%-1.26%
Revenue 1Y (TTM)0.84%
Revenue growth 3Y11.45%
Revenue growth 5Y5.22%
Sales Q2Q%0.34%
3.2 Future
The Earnings Per Share is expected to grow by 6.57% on average over the next years.
Based on estimates for the next years, AIT will show a small growth in Revenue. The Revenue will grow by 4.58% on average per year.
EPS Next Y0.34%
EPS Next 2Y4.24%
EPS Next 3Y6.57%
EPS Next 5YN/A
Revenue Next Year0.51%
Revenue Next 2Y2.89%
Revenue Next 3Y4.58%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.55, AIT is valued on the expensive side.
Based on the Price/Earnings ratio, AIT is valued a bit more expensive than 60.42% of the companies in the same industry.
AIT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.52, which indicates a rather expensive current valuation of AIT.
62.50% of the companies in the same industry are cheaper than AIT, based on the Price/Forward Earnings ratio.
AIT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.55 | ||
| Fwd PE | 22.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIT is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
AIT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AIT is cheaper than 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.74 | ||
| EV/EBITDA | 17.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AIT may justify a higher PE ratio.
PEG (NY)71.16
PEG (5Y)1.49
EPS Next 2Y4.24%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
AIT has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 1.86, AIT has a dividend in line with its industry peers.
With a Dividend Yield of 0.61, AIT pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of AIT has a limited annual growth rate of 3.44%.
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)3.44%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
AIT pays out 14.71% 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.
DP14.71%
EPS Next 2Y4.24%
EPS Next 3Y6.57%
APPLIED INDUSTRIAL TECH INC
NYSE:AIT (12/20/2024, 8:04:00 PM)
After market: 240.58 0 (0%)240.58
-2.87 (-1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners95.36%
Inst Owner Change-0.4%
Ins Owners0.9%
Ins Owner Change-2.09%
Market Cap9.25B
Analysts83.33
Price Target284.14 (18.11%)
Short Float %1.46%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Dividend Growth(5Y)3.44%
DP14.71%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.98%
Min EPS beat(2)3.74%
Max EPS beat(2)4.22%
EPS beat(4)4
Avg EPS beat(4)4.83%
Min EPS beat(4)2.31%
Max EPS beat(4)9.04%
EPS beat(8)8
Avg EPS beat(8)9.36%
EPS beat(12)12
Avg EPS beat(12)13.59%
EPS beat(16)16
Avg EPS beat(16)16.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-3.03%
Max Revenue beat(2)-0.19%
Revenue beat(4)2
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)0.67%
Revenue beat(8)5
Avg Revenue beat(8)0.6%
Revenue beat(12)9
Avg Revenue beat(12)2.14%
Revenue beat(16)13
Avg Revenue beat(16)2.18%
PT rev (1m)17.96%
PT rev (3m)25.91%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-7.23%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.55 | ||
| Fwd PE | 22.52 | ||
| P/S | 2.06 | ||
| P/FCF | 22.74 | ||
| P/OCF | 21.37 | ||
| P/B | 5.28 | ||
| P/tB | 10.45 | ||
| EV/EBITDA | 17.41 |
EPS(TTM)9.8
EY4.07%
EPS(NY)10.68
Fwd EY4.44%
FCF(TTM)10.58
FCFY4.4%
OCF(TTM)11.26
OCFY4.68%
SpS116.6
BVpS45.57
TBVpS23.02
PEG (NY)71.16
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.79% | ||
| ROE | 21.92% | ||
| ROCE | 19.34% | ||
| ROIC | 14.94% | ||
| ROICexc | 18.99% | ||
| ROICexgc | 33.7% | ||
| OM | 10.89% | ||
| PM (TTM) | 8.57% | ||
| GM | 29.82% | ||
| FCFM | 9.07% |
ROA(3y)12.07%
ROA(5y)8.73%
ROE(3y)23%
ROE(5y)17.48%
ROIC(3y)15.46%
ROIC(5y)13.38%
ROICexc(3y)18.18%
ROICexc(5y)15.7%
ROICexgc(3y)32.67%
ROICexgc(5y)30.06%
ROCE(3y)20.01%
ROCE(5y)17.32%
ROICexcg growth 3Y7.79%
ROICexcg growth 5Y4.83%
ROICexc growth 3Y14.57%
ROICexc growth 5Y10.87%
OM growth 3Y10.87%
OM growth 5Y7.5%
PM growth 3Y24.39%
PM growth 5Y15.74%
GM growth 3Y0.8%
GM growth 5Y0.55%
F-Score7
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.47 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 49.48% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.01% | ||
| Profit Quality | 105.95% | ||
| Current Ratio | 3.78 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 8.08 |
F-Score7
WACC11.53%
ROIC/WACC1.3
Cap/Depr(3y)43.72%
Cap/Depr(5y)38.4%
Cap/Sales(3y)0.54%
Cap/Sales(5y)0.55%
Profit Quality(3y)82.42%
Profit Quality(5y)311.14%
High Growth Momentum
Growth
EPS 1Y (TTM)5.83%
EPS 3Y28.07%
EPS 5Y16.45%
EPS Q2Q%-1.26%
EPS Next Y0.34%
EPS Next 2Y4.24%
EPS Next 3Y6.57%
EPS Next 5YN/A
Revenue 1Y (TTM)0.84%
Revenue growth 3Y11.45%
Revenue growth 5Y5.22%
Sales Q2Q%0.34%
Revenue Next Year0.51%
Revenue Next 2Y2.89%
Revenue Next 3Y4.58%
Revenue Next 5YN/A
EBIT growth 1Y0.21%
EBIT growth 3Y23.57%
EBIT growth 5Y13.12%
EBIT Next Year13.47%
EBIT Next 3Y9.95%
EBIT Next 5YN/A
FCF growth 1Y180.96%
FCF growth 3Y15.35%
FCF growth 5Y16.48%
OCF growth 1Y162.55%
OCF growth 3Y15.39%
OCF growth 5Y15.51%