APPLIED INDUSTRIAL TECH INC (AIT)
US03820C1053 - Common Stock
AIT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 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 does not seem to be growing, but still is valued expensively.
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.
AIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.79%, AIT belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.92%, AIT belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.94%, AIT belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AIT is significantly above the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.79% | ||
| ROE | 21.92% | ||
| ROIC | 14.94% |
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
The Profit Margin of AIT (8.57%) is better than 76.47% of its industry peers.
AIT's Profit Margin has improved in the last couple of years.
AIT's Operating Margin of 10.89% is fine compared to the rest of the industry. AIT outperforms 78.43% of its industry peers.
AIT's Operating Margin has improved in the last couple of years.
The Gross Margin of AIT (29.82%) is comparable to the rest of the industry.
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 | 10.89% | ||
| PM (TTM) | 8.57% | ||
| GM | 29.82% |
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
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.
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
An Altman-Z score of 8.49 indicates that AIT is not in any danger for bankruptcy at the moment.
AIT's Altman-Z score of 8.49 is amongst the best of the industry. AIT outperforms 94.12% of its industry peers.
The Debt to FCF ratio of AIT is 1.47, which is an excellent value as it means it would take AIT, only 1.47 years of fcf income to pay off all of its debts.
AIT has a Debt to FCF ratio of 1.47. This is in the better half of the industry: AIT outperforms 76.47% of its industry peers.
AIT has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
AIT has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 8.49 |
ROIC/WACC1.3
WACC11.45%
2.3 Liquidity
AIT has a Current Ratio of 3.78. This indicates that AIT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.78, AIT belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
AIT has a Quick Ratio of 2.74. This indicates that AIT is financially healthy and has no problem in meeting its short term obligations.
AIT has a better Quick ratio (2.74) than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.78 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
AIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.83%.
The Earnings Per Share has been growing by 16.45% on average over the past years. This is quite good.
Looking at the last year, AIT shows a small growth in Revenue. The Revenue has grown by 0.84% in the last year.
The Revenue has been growing slightly by 5.22% on average over the past years.
EPS 1Y (TTM)5.83%
EPS 3Y28.07%
EPS 5Y16.45%
EPS Q2Q%-1.26%
Revenue 1Y (TTM)0.84%
Revenue growth 3Y11.45%
Revenue growth 5Y5.22%
Sales Q2Q%0.34%
3.2 Future
Based on estimates for the next years, AIT will show a small growth in Earnings Per Share. The EPS will grow by 5.95% on average per year.
The Revenue is expected to grow by 3.28% on average over the next years.
EPS Next Y0.37%
EPS Next 2Y4.24%
EPS Next 3Y5.95%
EPS Next 5YN/A
Revenue Next Year0.51%
Revenue Next 2Y2.89%
Revenue Next 3Y3.28%
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
Based on the Price/Earnings ratio of 27.47, the valuation of AIT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AIT is on the same level as its industry peers.
AIT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 25.21, AIT can be considered very expensive at the moment.
AIT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, AIT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 25.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIT indicates a slightly more expensive valuation: AIT is more expensive than 62.75% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIT indicates a somewhat cheap valuation: AIT is cheaper than 70.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.45 | ||
| EV/EBITDA | 18.99 |
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.
AIT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)74.49
PEG (5Y)1.67
EPS Next 2Y4.24%
EPS Next 3Y5.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, AIT is not a good candidate for dividend investing.
AIT's Dividend Yield is comparable with the industry average which is at 1.73.
Compared to an average S&P500 Dividend Yield of 2.23, AIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.44%
Div Incr Years14
Div Non Decr Years33
5.3 Sustainability
AIT pays out 14.71% 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.
DP14.71%
EPS Next 2Y4.24%
EPS Next 3Y5.95%
APPLIED INDUSTRIAL TECH INC
NYSE:AIT (11/21/2024, 8:11:38 PM)
After market: 269.23 0 (0%)269.23
+3.49 (+1.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 25.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)74.49
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.79% | ||
| ROE | 21.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.89% | ||
| PM (TTM) | 8.57% | ||
| GM | 29.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.78 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.83%
EPS 3Y28.07%
EPS 5Y
EPS Q2Q%
EPS Next Y0.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.84%
Revenue growth 3Y11.45%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y