APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIT - US03820C1053 - Common Stock
257.32 USD
+1.54 (+0.6%)
258.067 USD
+0.75 (+0.29%)
Taking everything into account, AIT scores 7 out of 10 in our fundamental rating. AIT was compared to 49 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. AIT has a correct valuation and a medium 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.
In the past 5 years AIT has always been profitable.
In the past 5 years AIT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AIT (12.61%) is better than 95.92% of its industry peers.
The Return On Equity of AIT (21.33%) is better than 79.59% of its industry peers.
AIT's Return On Invested Capital of 14.92% is amongst the best of the industry. AIT outperforms 89.80% 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 9.22%.
| 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
Looking at the Profit Margin, with a value of 8.61%, AIT is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
AIT's Profit Margin has improved in the last couple of years.
The Operating Margin of AIT (11.03%) is better than 71.43% of its industry peers.
AIT's Operating Margin has improved in the last couple of years.
AIT's Gross Margin of 30.44% is in line compared to the rest of the industry. AIT outperforms 51.02% of its industry peers.
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.
Compared to 1 year ago, AIT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.07 indicates that AIT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.07, AIT belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
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's Debt to FCF ratio of 1.26 is amongst the best of the industry. AIT outperforms 87.76% 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 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 8.07 |
ROIC/WACC1.51
WACC9.86%
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.
AIT's Current ratio of 3.55 is amongst the best of the industry. AIT outperforms 81.63% 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 87.76% 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
Looking at the last year, AIT shows a small growth in Revenue. The Revenue has grown by 4.03% in the last year.
Measured over the past years, AIT shows a small growth in Revenue. The Revenue has been growing by 7.05% on average per year.
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
The Price/Earnings ratio is 24.77, 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 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.98, which indicates a rather expensive current valuation of AIT.
The rest of the industry has a similar Price/Forward Earnings ratio as AIT.
AIT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.77 | ||
| Fwd PE | 21.98 |
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 73.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.35 | ||
| EV/EBITDA | 17.07 |
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)3.8
PEG (5Y)1.15
EPS Next 2Y7.55%
EPS Next 3Y8.22%
5. Dividend
5.1 Amount
AIT has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 2.08, AIT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, AIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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 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
AIT pays out 16.64% 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.
DP16.64%
EPS Next 2Y7.55%
EPS Next 3Y8.22%
257.32
+1.54 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change-0.55%
Ins Owners0.84%
Ins Owner Change-2.59%
Market Cap9.71B
Revenue(TTM)4.66B
Net Income(TTM)401.73M
Analysts81.54
Price Target302.35 (17.5%)
Short Float %1.88%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)1%
PT rev (3m)1.65%
EPS NQ rev (1m)-2.78%
EPS NQ rev (3m)-2.62%
EPS NY rev (1m)1.03%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.77 | ||
| Fwd PE | 21.98 | ||
| P/S | 2.08 | ||
| P/FCF | 21.35 | ||
| P/OCF | 20.07 | ||
| P/B | 5.16 | ||
| P/tB | 11.5 | ||
| EV/EBITDA | 17.07 |
EPS(TTM)10.39
EY4.04%
EPS(NY)11.71
Fwd EY4.55%
FCF(TTM)12.05
FCFY4.68%
OCF(TTM)12.82
OCFY4.98%
SpS123.55
BVpS49.9
TBVpS22.38
PEG (NY)3.8
PEG (5Y)1.15
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 | 8.07 |
F-Score6
WACC9.86%
ROIC/WACC1.51
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 24.77 and the Price/Book (PB) ratio is 5.16.
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.