APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - NYSE:AIT - US03820C1053 - Common Stock
240.63 USD
-8.33 (-3.35%)
240.63 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to AIT. AIT was compared to 50 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 not valued too expensively and it also shows 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.
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
AIT has a Return On Assets of 12.61%. This is amongst the best in the industry. AIT outperforms 96.00% of its industry peers.
Looking at the Return On Equity, with a value of 21.33%, AIT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
AIT has a better Return On Invested Capital (14.92%) than 88.00% 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 9.31%.
| 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 has a better Profit Margin (8.61%) than 78.00% of its industry peers.
AIT's Profit Margin has improved in the last couple of years.
AIT has a better Operating Margin (11.03%) than 74.00% of its industry peers.
AIT's Operating Margin has improved in the last couple of years.
AIT has a Gross Margin (30.44%) 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 | 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 well above the Cost of Capital (WACC), so AIT is creating value.
The number of shares outstanding for AIT has been reduced compared to 1 year ago.
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
An Altman-Z score of 7.93 indicates that AIT is not in any danger for bankruptcy at the moment.
The Altman-Z score of AIT (7.93) is better than 90.00% 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's Debt to FCF ratio of 1.26 is amongst the best of the industry. AIT outperforms 84.00% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that AIT is not too dependend on debt financing.
AIT has a Debt to Equity ratio of 0.30. This is in the better half of the industry: AIT outperforms 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 7.93 |
ROIC/WACC1.77
WACC8.42%
2.3 Liquidity
A Current Ratio of 3.55 indicates that AIT has no problem at all paying its short term obligations.
The Current ratio of AIT (3.55) is better than 80.00% of its industry peers.
A Quick Ratio of 2.50 indicates that AIT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.50, AIT belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
| 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.
AIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.58% yearly.
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
Based on estimates for the next years, AIT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.22% on average per year.
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.
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
AIT is valuated rather expensively with a Price/Earnings ratio of 23.16.
AIT's Price/Earnings ratio is in line with the industry average.
AIT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
AIT is valuated rather expensively with a Price/Forward Earnings ratio of 20.56.
AIT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.62. AIT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.16 | ||
| Fwd PE | 20.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIT is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AIT is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.96 | ||
| EV/EBITDA | 16.52 |
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)3.56
PEG (5Y)1.07
EPS Next 2Y7.55%
EPS Next 3Y8.22%
5. Dividend
5.1 Amount
AIT has a yearly dividend return of 0.73%, which is pretty low.
AIT's Dividend Yield is comparable with the industry average which is at 2.04.
With a Dividend Yield of 0.73, AIT pays less dividend than the S&P500 average, which is at 2.44.
| 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 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)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.
The dividend of AIT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.64%
EPS Next 2Y7.55%
EPS Next 3Y8.22%
240.63
-8.33 (-3.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change-0.59%
Ins Owners0.84%
Ins Owner Change-4.11%
Market Cap9.08B
Revenue(TTM)4.66B
Net Income(TTM)401.73M
Analysts81.54
Price Target301.71 (25.38%)
Short Float %1.94%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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 | 23.16 | ||
| Fwd PE | 20.56 | ||
| P/S | 1.95 | ||
| P/FCF | 19.96 | ||
| P/OCF | 18.77 | ||
| P/B | 4.82 | ||
| P/tB | 10.75 | ||
| EV/EBITDA | 16.52 |
EPS(TTM)10.39
EY4.32%
EPS(NY)11.71
Fwd EY4.86%
FCF(TTM)12.05
FCFY5.01%
OCF(TTM)12.82
OCFY5.33%
SpS123.55
BVpS49.9
TBVpS22.38
PEG (NY)3.56
PEG (5Y)1.07
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 | 7.93 |
F-Score6
WACC8.42%
ROIC/WACC1.77
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 23.16 and the Price/Book (PB) ratio is 4.82.
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.