APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIT - US03820C1053 - Common Stock
281.54 USD
+1.4 (+0.5%)
281.54 USD
0 (0%)
Taking everything into account, AIT scores 7 out of 10 in our fundamental rating. AIT was compared to 50 industry peers in the Trading Companies & Distributors industry. AIT gets an excellent profitability rating and is at the same time showing great financial health properties. AIT is valied quite expensively at the moment, while 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.
- AIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AIT has a better Return On Assets (12.61%) than 96.00% of its industry peers.
- With a decent Return On Equity value of 21.33%, AIT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- AIT's Return On Invested Capital of 14.92% is amongst the best of the industry. AIT outperforms 88.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AIT is significantly above the industry average of 9.64%.
| 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 74.00% of the companies in the same industry.
- AIT's Profit Margin has improved in the last couple of years.
- AIT has a better Operating Margin (11.03%) than 72.00% of its industry peers.
- In the last couple of years the Operating Margin of AIT has grown nicely.
- With a Gross Margin value of 30.44%, AIT perfoms like the industry average, outperforming 54.00% 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 | 11.03% | ||
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AIT is creating some value.
- AIT has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AIT has less shares outstanding
- Compared to 1 year ago, AIT has an improved debt to assets ratio.
2.2 Solvency
- AIT has an Altman-Z score of 8.49. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.49, AIT belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- The Debt to FCF ratio of AIT is 1.26, which is an excellent value as it means it would take AIT, only 1.26 years of fcf income to pay off all of its debts.
- AIT has a Debt to FCF ratio of 1.26. This is amongst the best in the industry. AIT outperforms 86.00% 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.
- Looking at the Debt to Equity ratio, with a value of 0.30, AIT is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 8.49 |
ROIC/WACC1.54
WACC9.66%
2.3 Liquidity
- A Current Ratio of 3.55 indicates that AIT has no problem at all paying its short term obligations.
- With a decent Current ratio value of 3.55, AIT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- 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 88.00% 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
- The Revenue has been growing slightly by 4.03% 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)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 8.18% yearly.
- The Revenue is expected to grow by 5.47% on average over the next years.
EPS Next Y6.51%
EPS Next 2Y7.54%
EPS Next 3Y8.18%
EPS Next 5YN/A
Revenue Next Year7.51%
Revenue Next 2Y6.4%
Revenue Next 3Y5.47%
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 27.10, which means the current valuation is very expensive for AIT.
- The rest of the industry has a similar Price/Earnings ratio as AIT.
- AIT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- AIT is valuated rather expensively with a Price/Forward Earnings ratio of 24.05.
- AIT's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, AIT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.1 | ||
| Fwd PE | 24.05 |
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 74.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.34 | ||
| EV/EBITDA | 18.64 |
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)4.16
PEG (5Y)1.26
EPS Next 2Y7.54%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.65%, AIT is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.31, AIT has a dividend in line with its industry peers.
- With a Dividend Yield of 0.65, AIT pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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
- 16.64% of the earnings are spent on dividend by AIT. This is a low number and sustainable payout ratio.
- The dividend of AIT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.64%
EPS Next 2Y7.54%
EPS Next 3Y8.18%
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.
Can you provide the valuation status for APPLIED INDUSTRIAL TECH INC?
ChartMill assigns a valuation rating of 3 / 10 to APPLIED INDUSTRIAL TECH INC (AIT). This can be considered as Overvalued.
How profitable is APPLIED INDUSTRIAL TECH INC (AIT) stock?
APPLIED INDUSTRIAL TECH INC (AIT) has a profitability rating of 8 / 10.
Can you provide the financial health for AIT stock?
The financial health rating of APPLIED INDUSTRIAL TECH INC (AIT) is 9 / 10.
How sustainable is the dividend of APPLIED INDUSTRIAL TECH INC (AIT) stock?
The dividend rating of APPLIED INDUSTRIAL TECH INC (AIT) is 5 / 10 and the dividend payout ratio is 16.64%.