APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
NYSE:AIT - New York Stock Exchange, Inc. - US03820C1053 - Common Stock - Currency: USD
Overall AIT gets a fundamental rating of 7 out of 10. We evaluated AIT against 48 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. AIT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AIT was profitable.
AIT had a positive operating cash flow in the past year.
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
AIT has a Return On Assets of 12.68%. This is amongst the best in the industry. AIT outperforms 93.62% of its industry peers.
AIT's Return On Equity of 21.53% is amongst the best of the industry. AIT outperforms 87.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.61%, AIT belongs to the top of the industry, outperforming 85.11% 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 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.68% | ||
| ROE | 21.53% | ||
| ROIC | 14.61% |
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
With an excellent Profit Margin value of 8.62%, AIT belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
In the last couple of years the Profit Margin of AIT has grown nicely.
With a decent Operating Margin value of 11.04%, AIT is doing good in the industry, outperforming 70.21% of the companies in the same industry.
AIT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.09%, AIT is in line with its industry, outperforming 46.81% 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 | 11.04% | ||
| PM (TTM) | 8.62% | ||
| GM | 30.09% |
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
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.
AIT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AIT has an improved debt to assets ratio.
2.2 Solvency
AIT has an Altman-Z score of 8.03. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
AIT has a Altman-Z score of 8.03. This is amongst the best in the industry. AIT outperforms 95.74% of its industry peers.
AIT has a debt to FCF ratio of 1.43. This is a very positive value and a sign of high solvency as it would only need 1.43 years to pay back of all of its debts.
The Debt to FCF ratio of AIT (1.43) is better than 80.85% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that AIT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, AIT is in line with its industry, outperforming 59.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 8.03 |
ROIC/WACC1.39
WACC10.52%
2.3 Liquidity
A Current Ratio of 3.76 indicates that AIT has no problem at all paying its short term obligations.
AIT's Current ratio of 3.76 is amongst the best of the industry. AIT outperforms 89.36% of its industry peers.
AIT has a Quick Ratio of 2.55. This indicates that AIT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.55, AIT belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.76 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
AIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.57%.
Measured over the past years, AIT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.45% on average per year.
The Revenue has been growing slightly by 0.37% in the past year.
Measured over the past years, AIT shows a small growth in Revenue. The Revenue has been growing by 5.22% on average per year.
EPS 1Y (TTM)3.57%
EPS 3Y28.07%
EPS 5Y16.45%
EPS Q2Q%3.02%
Revenue 1Y (TTM)0.37%
Revenue growth 3Y11.45%
Revenue growth 5Y5.22%
Sales Q2Q%-0.39%
3.2 Future
The Earnings Per Share is expected to grow by 6.92% 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 4.40% on average per year.
EPS Next Y2%
EPS Next 2Y5.34%
EPS Next 3Y6.92%
EPS Next 5YN/A
Revenue Next Year1.45%
Revenue Next 2Y4.17%
Revenue Next 3Y4.4%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
AIT is valuated quite expensively with a Price/Earnings ratio of 25.13.
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 29.01.
With a Price/Forward Earnings ratio of 22.74, AIT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, AIT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 22.74 |
4.2 Price Multiples
63.83% of the companies in the same industry are cheaper than AIT, based on the Enterprise Value to EBITDA ratio.
68.09% of the companies in the same industry are more expensive than AIT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.76 | ||
| EV/EBITDA | 17.64 |
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)12.55
PEG (5Y)1.53
EPS Next 2Y5.34%
EPS Next 3Y6.92%
5. Dividend
5.1 Amount
AIT has a yearly dividend return of 0.70%, which is pretty low.
AIT's Dividend Yield is comparable with the industry average which is at 1.92.
Compared to an average S&P500 Dividend Yield of 2.27, AIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of AIT has a limited annual growth rate of 3.44%.
AIT has been paying a dividend for at least 10 years, so it has 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)3.44%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
AIT pays out 14.81% 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.
DP14.81%
EPS Next 2Y5.34%
EPS Next 3Y6.92%
NYSE:AIT (2/28/2025, 10:37:11 AM)
248.025
+3.34 (+1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners95.52%
Inst Owner Change1.51%
Ins Owners0.89%
Ins Owner Change-1.44%
Market Cap9.52B
Analysts83.33
Price Target304.54 (22.79%)
Short Float %1.94%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend1.45
Dividend Growth(5Y)3.44%
DP14.81%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.31%
Min EPS beat(2)3.74%
Max EPS beat(2)6.89%
EPS beat(4)4
Avg EPS beat(4)4.29%
Min EPS beat(4)2.31%
Max EPS beat(4)6.89%
EPS beat(8)8
Avg EPS beat(8)7.5%
EPS beat(12)12
Avg EPS beat(12)11.32%
EPS beat(16)16
Avg EPS beat(16)14.87%
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)-0.19%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)0.3%
Revenue beat(8)4
Avg Revenue beat(8)-0.23%
Revenue beat(12)8
Avg Revenue beat(12)1.86%
Revenue beat(16)12
Avg Revenue beat(16)2.04%
PT rev (1m)1.95%
PT rev (3m)11.47%
EPS NQ rev (1m)-1.95%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)1.37%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 22.74 | ||
| P/S | 2.13 | ||
| P/FCF | 23.76 | ||
| P/OCF | 22.33 | ||
| P/B | 5.31 | ||
| P/tB | 12.75 | ||
| EV/EBITDA | 17.64 |
EPS(TTM)9.87
EY3.98%
EPS(NY)10.91
Fwd EY4.4%
FCF(TTM)10.44
FCFY4.21%
OCF(TTM)11.11
OCFY4.48%
SpS116.7
BVpS46.73
TBVpS19.45
PEG (NY)12.55
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.68% | ||
| ROE | 21.53% | ||
| ROCE | 18.91% | ||
| ROIC | 14.61% | ||
| ROICexc | 16.53% | ||
| ROICexgc | 30.21% | ||
| OM | 11.04% | ||
| PM (TTM) | 8.62% | ||
| GM | 30.09% | ||
| FCFM | 8.94% |
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 Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 48.62% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.86% | ||
| Profit Quality | 103.76% | ||
| Current Ratio | 3.76 | ||
| Quick Ratio | 2.55 | ||
| Altman-Z | 8.03 |
F-Score7
WACC10.52%
ROIC/WACC1.39
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)3.57%
EPS 3Y28.07%
EPS 5Y16.45%
EPS Q2Q%3.02%
EPS Next Y2%
EPS Next 2Y5.34%
EPS Next 3Y6.92%
EPS Next 5YN/A
Revenue 1Y (TTM)0.37%
Revenue growth 3Y11.45%
Revenue growth 5Y5.22%
Sales Q2Q%-0.39%
Revenue Next Year1.45%
Revenue Next 2Y4.17%
Revenue Next 3Y4.4%
Revenue Next 5YN/A
EBIT growth 1Y1.14%
EBIT growth 3Y23.57%
EBIT growth 5Y13.12%
EBIT Next Year15.64%
EBIT Next 3Y10.16%
EBIT Next 5YN/A
FCF growth 1Y133.29%
FCF growth 3Y15.35%
FCF growth 5Y16.48%
OCF growth 1Y118.51%
OCF growth 3Y15.39%
OCF growth 5Y15.51%