APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - NYSE:AIT - US03820C1053 - Common Stock
252.95 USD
+6.21 (+2.52%)
252.95 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to AIT. AIT was compared to 49 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. AIT is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years AIT had a positive operating cash flow.
1.2 Ratios
AIT has a Return On Assets of 12.38%. This is amongst the best in the industry. AIT outperforms 95.92% of its industry peers.
AIT has a Return On Equity of 21.31%. This is in the better half of the industry: AIT outperforms 77.55% of its industry peers.
The Return On Invested Capital of AIT (14.67%) is better than 87.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AIT is significantly above the industry average of 10.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 21.31% | ||
| ROIC | 14.67% |
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 77.55% of the companies in the same industry.
AIT's Profit Margin has improved in the last couple of years.
AIT's Operating Margin of 10.92% is fine compared to the rest of the industry. AIT outperforms 73.47% of its industry peers.
AIT's Operating Margin has improved in the last couple of years.
AIT has a Gross Margin (30.31%) 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 | 10.92% | ||
| PM (TTM) | 8.61% | ||
| GM | 30.31% |
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.
Compared to 1 year ago, AIT has less shares outstanding
Compared to 5 years ago, AIT has less shares outstanding
The debt/assets ratio for AIT has been reduced compared to a year ago.
2.2 Solvency
AIT has an Altman-Z score of 7.80. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AIT (7.80) is better than 93.88% of its industry peers.
AIT has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.23, AIT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that AIT is not too dependend on debt financing.
AIT's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. AIT outperforms 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 7.8 |
ROIC/WACC1.57
WACC9.32%
2.3 Liquidity
A Current Ratio of 3.32 indicates that AIT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.32, AIT belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
AIT has a Quick Ratio of 2.36. This indicates that AIT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.36, AIT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.95% 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 1.88% 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)2.95%
EPS 3Y14.97%
EPS 5Y21.58%
EPS Q2Q%6.06%
Revenue 1Y (TTM)1.88%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%5.52%
3.2 Future
Based on estimates for the next years, AIT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.36% on average per year.
The Revenue is expected to grow by 5.25% on average over the next years.
EPS Next Y5.43%
EPS Next 2Y7.24%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue Next Year7.18%
Revenue Next 2Y6.26%
Revenue Next 3Y5.25%
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 25.00 indicates a rather expensive valuation of AIT.
AIT's Price/Earnings is on the same level as the industry average.
AIT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.50.
Based on the Price/Forward Earnings ratio of 23.71, the valuation of AIT can be described as rather expensive.
AIT's Price/Forward Earnings ratio is in line with the industry average.
AIT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 23.71 |
4.2 Price Multiples
AIT's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, AIT is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.53 | ||
| 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.
AIT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.6
PEG (5Y)1.16
EPS Next 2Y7.24%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, AIT is not a good candidate for dividend investing.
AIT's Dividend Yield is comparable with the industry average which is at 2.83.
Compared to an average S&P500 Dividend Yield of 2.44, AIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.71%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
AIT pays out 16.21% 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.
DP16.21%
EPS Next 2Y7.24%
EPS Next 3Y8.36%
252.95
+6.21 (+2.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change0.03%
Ins Owners0.84%
Ins Owner Change-2.59%
Market Cap9.55B
Analysts81.54
Price Target299.35 (18.34%)
Short Float %1.69%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend1.67
Dividend Growth(5Y)5.71%
DP16.21%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.6%
Min EPS beat(2)5.58%
Max EPS beat(2)5.61%
EPS beat(4)4
Avg EPS beat(4)5.46%
Min EPS beat(4)3.74%
Max EPS beat(4)6.89%
EPS beat(8)8
Avg EPS beat(8)6.3%
EPS beat(12)12
Avg EPS beat(12)9.37%
EPS beat(16)16
Avg EPS beat(16)12.08%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)2.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)2.49%
Revenue beat(8)3
Avg Revenue beat(8)-0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.92%
Revenue beat(16)11
Avg Revenue beat(16)1.63%
PT rev (1m)0%
PT rev (3m)5.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.5%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 23.71 | ||
| P/S | 2.09 | ||
| P/FCF | 20.53 | ||
| P/OCF | 19.39 | ||
| P/B | 5.18 | ||
| P/tB | 11.99 | ||
| EV/EBITDA | 17.41 |
EPS(TTM)10.12
EY4%
EPS(NY)10.67
Fwd EY4.22%
FCF(TTM)12.32
FCFY4.87%
OCF(TTM)13.04
OCFY5.16%
SpS120.89
BVpS48.86
TBVpS21.1
PEG (NY)4.6
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 21.31% | ||
| ROCE | 18.82% | ||
| ROIC | 14.67% | ||
| ROICexc | 17.19% | ||
| ROICexgc | 32.03% | ||
| OM | 10.92% | ||
| PM (TTM) | 8.61% | ||
| GM | 30.31% | ||
| FCFM | 10.19% |
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%
ROICexcg growth 3Y3.11%
ROICexcg 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 Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.23 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 44.95% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 22.84 | ||
| Cash Conversion | 88.08% | ||
| Profit Quality | 118.38% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 7.8 |
F-Score6
WACC9.32%
ROIC/WACC1.57
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)2.95%
EPS 3Y14.97%
EPS 5Y21.58%
EPS Q2Q%6.06%
EPS Next Y5.43%
EPS Next 2Y7.24%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue 1Y (TTM)1.88%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%5.52%
Revenue Next Year7.18%
Revenue Next 2Y6.26%
Revenue Next 3Y5.25%
Revenue Next 5YN/A
EBIT growth 1Y0.54%
EBIT growth 3Y11.68%
EBIT growth 5Y16.83%
EBIT Next Year21.63%
EBIT Next 3Y11.74%
EBIT Next 5YN/A
FCF growth 1Y34.24%
FCF growth 3Y40.01%
FCF growth 5Y10.96%
OCF growth 1Y32.58%
OCF growth 3Y37.94%
OCF growth 5Y10.66%