APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIT - US03820C1053 - Common Stock
258.82 USD
+1.5 (+0.58%)
258.698 USD
-0.12 (-0.05%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. AIT has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years AIT has been profitable.
In the past 5 years AIT always reported a positive cash flow from operatings.
1.2 Ratios
AIT has a better Return On Assets (12.61%) than 95.92% 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 79.59% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.92%, AIT belongs to the best of the industry, outperforming 89.80% 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 9.22%.
| 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
AIT's Profit Margin of 8.61% is fine compared to the rest of the industry. AIT outperforms 75.51% of its industry peers.
In the last couple of years the Profit Margin of AIT has grown nicely.
Looking at the Operating Margin, with a value of 11.03%, AIT is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of AIT has grown nicely.
AIT has a Gross Margin (30.44%) which is in line with 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AIT is creating some value.
The number of shares outstanding for AIT has been reduced compared to 1 year ago.
Compared to 5 years ago, AIT has less shares outstanding
AIT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.07 indicates that AIT is not in any danger for bankruptcy at the moment.
AIT's Altman-Z score of 8.07 is amongst the best of the industry. AIT outperforms 89.80% 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 87.76% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that AIT is not too dependend on debt financing.
The Debt to Equity ratio of AIT (0.30) is better than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 8.07 |
ROIC/WACC1.5
WACC9.95%
2.3 Liquidity
A Current Ratio of 3.55 indicates that AIT has no problem at all paying 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.
A Quick Ratio of 2.50 indicates that AIT has no problem at all paying its short term obligations.
AIT has a better Quick ratio (2.50) 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.
AIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.58% yearly.
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 8.22% on average per year.
Based on estimates for the next years, AIT will show a small growth in Revenue. The Revenue will grow by 5.22% on average per year.
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
With a Price/Earnings ratio of 24.91, AIT is valued on the expensive side.
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 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.11 indicates a rather expensive valuation of AIT.
AIT's Price/Forward Earnings ratio is in line with the industry average.
AIT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 22.11 |
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 the industry average as 73.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.47 | ||
| 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)3.83
PEG (5Y)1.15
EPS Next 2Y7.55%
EPS Next 3Y8.22%
5. Dividend
5.1 Amount
AIT has a yearly dividend return of 0.72%, 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 2.40, AIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
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%
258.82
+1.5 (+0.58%)
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 Cap9.76B
Revenue(TTM)4.66B
Net Income(TTM)401.73M
Analysts81.54
Price Target302.35 (16.82%)
Short Float %1.88%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 | 24.91 | ||
| Fwd PE | 22.11 | ||
| P/S | 2.09 | ||
| P/FCF | 21.47 | ||
| P/OCF | 20.19 | ||
| P/B | 5.19 | ||
| P/tB | 11.56 | ||
| EV/EBITDA | 17.07 |
EPS(TTM)10.39
EY4.01%
EPS(NY)11.71
Fwd EY4.52%
FCF(TTM)12.05
FCFY4.66%
OCF(TTM)12.82
OCFY4.95%
SpS123.55
BVpS49.9
TBVpS22.38
PEG (NY)3.83
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
WACC9.95%
ROIC/WACC1.5
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 24.91 and the Price/Book (PB) ratio is 5.19.
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.