Altra Industrial Motion Corporation (AIMC)
US02208R1068 - Common Stock
Taking everything into account, AIMC scores 5 out of 10 in our fundamental rating. AIMC was compared to 132 industry peers in the Machinery industry. AIMC scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, AIMC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AIMC had positive earnings in the past year.
In the past year AIMC had a positive cash flow from operations.
Of the past 5 years AIMC 4 years were profitable.
AIMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AIMC's Return On Assets of 3.45% is in line compared to the rest of the industry. AIMC outperforms 50.76% of its industry peers.
AIMC has a Return On Equity of 6.34%. This is comparable to the rest of the industry: AIMC outperforms 48.48% of its industry peers.
The Return On Invested Capital of AIMC (5.26%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AIMC is significantly above the industry average of 10.74%.
The 3 year average ROIC (25.80%) for AIMC is well above the current ROIC(5.26%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 6.34% | ||
| ROIC | 5.26% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.8%
ROIC(5y)N/A
1.3 Margins
AIMC has a Profit Margin of 6.53%. This is in the better half of the industry: AIMC outperforms 62.12% of its industry peers.
In the last couple of years the Profit Margin of AIMC has grown nicely.
Looking at the Operating Margin, with a value of 13.30%, AIMC is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
In the last couple of years the Operating Margin of AIMC has grown nicely.
AIMC has a Gross Margin of 35.62%. This is in the better half of the industry: AIMC outperforms 75.00% of its industry peers.
AIMC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.3% | ||
| PM (TTM) | 6.53% | ||
| GM | 35.62% |
OM growth 3Y0.8%
OM growth 5Y6.06%
PM growth 3Y-2%
PM growth 5Y2.17%
GM growth 3Y-0.16%
GM growth 5Y2.51%
2. Health
2.1 Basic Checks
AIMC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
AIMC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AIMC has been increased compared to 5 years ago.
The debt/assets ratio for AIMC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.51 indicates that AIMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
AIMC has a Altman-Z score (2.51) which is comparable to the rest of the industry.
The Debt to FCF ratio of AIMC is 15.12, which is on the high side as it means it would take AIMC, 15.12 years of fcf income to pay off all of its debts.
AIMC has a Debt to FCF ratio (15.12) which is in line with its industry peers.
A Debt/Equity ratio of 0.51 indicates that AIMC is somewhat dependend on debt financing.
AIMC has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 15.12 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.57
WACC9.18%
2.3 Liquidity
AIMC has a Current Ratio of 2.22. This indicates that AIMC is financially healthy and has no problem in meeting its short term obligations.
AIMC has a Current ratio (2.22) which is in line with its industry peers.
A Quick Ratio of 1.32 indicates that AIMC should not have too much problems paying its short term obligations.
AIMC's Quick ratio of 1.32 is in line compared to the rest of the industry. AIMC outperforms 53.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
AIMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.86%.
The Earnings Per Share has been growing by 9.86% on average over the past years. This is quite good.
AIMC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.41%.
AIMC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.28% yearly.
EPS 1Y (TTM)1.86%
EPS 3Y4.67%
EPS 5Y9.86%
EPS growth Q2Q8.96%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y1.98%
Revenue growth 5Y17.28%
Revenue growth Q2Q-0.09%
3.2 Future
The Earnings Per Share is expected to grow by 7.51% on average over the next years.
The Revenue is expected to grow by 2.86% on average over the next years.
EPS Next Y4.95%
EPS Next 2Y7.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.02%
Revenue Next 2Y2.86%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 18.90 indicates a rather expensive valuation of AIMC.
Based on the Price/Earnings ratio, AIMC is valued a bit cheaper than the industry average as 65.15% of the companies are valued more expensively.
AIMC is valuated rather cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.00 indicates a rather expensive valuation of AIMC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIMC indicates a somewhat cheap valuation: AIMC is cheaper than 65.15% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AIMC to the average of the S&P500 Index (21.49), we can say AIMC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIMC is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as AIMC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.62 | ||
| EV/EBITDA | 13.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AIMC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of AIMC may justify a higher PE ratio.
PEG (NY)3.81
PEG (5Y)1.92
EPS Next 2Y7.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, AIMC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.72, AIMC has a dividend in line with its industry peers.
With a Dividend Yield of 0.59, AIMC pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of AIMC decreases each year by -23.87%.
AIMC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of AIMC decreased recently.
Dividend Growth(5Y)-23.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
17.56% of the earnings are spent on dividend by AIMC. This is a low number and sustainable payout ratio.
DP17.56%
EPS Next 2Y7.51%
EPS Next 3YN/A
Altra Industrial Motion Corporation
NASDAQ:AIMC (3/24/2023, 8:14:51 PM)
After market: 62 +0.02 (+0.03%)61.98
-0.01 (-0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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)
Max EPS beat(4)
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 | 18.9 | ||
| Fwd PE | 18 | ||
| 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)3.81
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 6.34% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.3% | ||
| PM (TTM) | 6.53% | ||
| GM | 35.62% | ||
| 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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.32 | ||
| 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)
Growth
EPS 1Y (TTM)1.86%
EPS 3Y4.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.41%
Revenue growth 3Y1.98%
Revenue growth 5Y
Revenue growth 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