APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIT - US03820C1053 - Common Stock
263.4 USD
-1.38 (-0.52%)
263.4 USD
0 (0%)
AIT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AIT had positive earnings in the past year.
AIT had a positive operating cash flow in the past year.
AIT had positive earnings in each of the past 5 years.
Each year in the past 5 years AIT had a positive operating cash flow.
1.2 Ratios
AIT has a better Return On Assets (12.61%) than 96.00% of its industry peers.
AIT has a better Return On Equity (21.33%) than 80.00% of its industry peers.
AIT's Return On Invested Capital of 14.92% is amongst the best of the industry. AIT outperforms 88.00% of its industry peers.
AIT had an Average Return On Invested Capital over the past 3 years of 15.73%. This is significantly above the industry average of 9.63%.
| 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 74.00% 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 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 52.00% of the companies in the same 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 | 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 just above the Cost of Capital (WACC), so AIT is still 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.
AIT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.20 indicates that AIT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.20, AIT belongs to the best of the industry, outperforming 92.00% 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 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.
AIT has a better Debt to Equity ratio (0.30) than 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 8.2 |
ROIC/WACC1.55
WACC9.63%
2.3 Liquidity
A Current Ratio of 3.55 indicates that AIT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.55, AIT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 2.50 indicates that AIT has no problem at all paying 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
AIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.02%.
Measured over the past years, AIT shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.58% on average per year.
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
Based on estimates for the next years, AIT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.12% on average per year.
The Revenue is expected to grow by 5.55% on average over the next years.
EPS Next Y6.51%
EPS Next 2Y7.55%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue Next Year7.46%
Revenue Next 2Y6.38%
Revenue Next 3Y5.55%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 25.35, the valuation of AIT can be described as expensive.
AIT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AIT to the average of the S&P500 Index (26.84), we can say AIT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.50, the valuation of AIT can be described as rather expensive.
AIT's Price/Forward Earnings is on the same level as the industry average.
AIT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 22.5 |
4.2 Price Multiples
AIT's Enterprise Value to EBITDA ratio is in line with the industry average.
AIT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AIT is cheaper than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.84 | ||
| EV/EBITDA | 17.54 |
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)3.89
PEG (5Y)1.17
EPS Next 2Y7.55%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, AIT is not a good candidate for dividend investing.
AIT's Dividend Yield is comparable with the industry average which is at 0.98.
With a Dividend Yield of 0.70, AIT pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 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.
AIT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.64%
EPS Next 2Y7.55%
EPS Next 3Y8.12%
263.4
-1.38 (-0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.01%
Inst Owner Change-0.53%
Ins Owners0.84%
Ins Owner Change-2.59%
Market Cap9.94B
Revenue(TTM)4.66B
Net Income(TTM)401.73M
Analysts81.54
Price Target302.35 (14.79%)
Short Float %2.37%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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%
PT rev (3m)1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.81%
EPS NY rev (1m)0%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 22.5 | ||
| P/S | 2.13 | ||
| P/FCF | 21.84 | ||
| P/OCF | 20.53 | ||
| P/B | 5.27 | ||
| P/tB | 11.76 | ||
| EV/EBITDA | 17.54 |
EPS(TTM)10.39
EY3.94%
EPS(NY)11.71
Fwd EY4.44%
FCF(TTM)12.06
FCFY4.58%
OCF(TTM)12.83
OCFY4.87%
SpS123.65
BVpS49.94
TBVpS22.4
PEG (NY)3.89
PEG (5Y)1.17
Graham Number108.05
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 | 8.2 |
F-Score6
WACC9.63%
ROIC/WACC1.55
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 3Y8.12%
EPS Next 5YN/A
Revenue 1Y (TTM)4.03%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%9.15%
Revenue Next Year7.46%
Revenue Next 2Y6.38%
Revenue Next 3Y5.55%
Revenue Next 5YN/A
EBIT growth 1Y5.34%
EBIT growth 3Y11.68%
EBIT growth 5Y16.83%
EBIT Next Year21.54%
EBIT Next 3Y11.32%
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 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.
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 25.35 and the Price/Book (PB) ratio is 5.27.
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.