APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIT - US03820C1053 - Common Stock
260.935 USD
+1.45 (+0.56%)
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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AIT was profitable.
In the past year AIT had a positive cash flow from operations.
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.
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 has a better Return On Invested Capital (14.92%) than 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.
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 72.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AIT has grown nicely.
Looking at the Gross Margin, with a value of 30.44%, AIT is in line with its industry, outperforming 52.00% 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
AIT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AIT has been reduced compared to 1 year ago.
The number of shares outstanding for AIT has been reduced compared to 5 years ago.
The debt/assets ratio for AIT has been reduced compared to a year ago.
2.2 Solvency
AIT has an Altman-Z score of 8.11. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.11, AIT belongs to the top 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.
Looking at the Debt to FCF ratio, with a value of 1.26, AIT belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
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 | 8.11 |
ROIC/WACC1.54
WACC9.67%
2.3 Liquidity
AIT has a Current Ratio of 3.55. This indicates that AIT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AIT (3.55) is better than 80.00% of its industry peers.
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.
AIT has a better Quick ratio (2.50) 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%.
AIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.58% yearly.
The Revenue has been growing slightly by 4.03% in the past year.
The Revenue has been growing slightly by 7.05% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.12% on average over the next years. This is quite good.
AIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
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
The Price/Earnings ratio is 25.11, which means the current valuation is very expensive for AIT.
AIT's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.26, AIT is valued at the same level.
The Price/Forward Earnings ratio is 22.29, which indicates a rather expensive current valuation of AIT.
AIT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.68, AIT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | 22.29 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIT indicates a somewhat cheap valuation: AIT is cheaper than 76.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.63 | ||
| EV/EBITDA | 17.2 |
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)3.86
PEG (5Y)1.16
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.
Compared to an average industry Dividend Yield of 0.97, AIT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, AIT's dividend is way lower than the S&P500 average.
| 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 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
AIT pays out 16.64% of its income as dividend. This is a sustainable payout ratio.
The dividend of AIT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.64%
EPS Next 2Y7.55%
EPS Next 3Y8.12%
NYSE:AIT (12/19/2025, 3:52:08 PM)
260.935
+1.45 (+0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.01%
Inst Owner Change-0.54%
Ins Owners0.84%
Ins Owner Change-2.59%
Market Cap9.84B
Revenue(TTM)4.66B
Net Income(TTM)401.73M
Analysts81.54
Price Target302.35 (15.87%)
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)0.21%
PT rev (3m)1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0.93%
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 | 25.11 | ||
| Fwd PE | 22.29 | ||
| P/S | 2.11 | ||
| P/FCF | 21.63 | ||
| P/OCF | 20.34 | ||
| P/B | 5.22 | ||
| P/tB | 11.65 | ||
| EV/EBITDA | 17.2 |
EPS(TTM)10.39
EY3.98%
EPS(NY)11.71
Fwd EY4.49%
FCF(TTM)12.06
FCFY4.62%
OCF(TTM)12.83
OCFY4.92%
SpS123.65
BVpS49.94
TBVpS22.4
PEG (NY)3.86
PEG (5Y)1.16
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 | 8.11 |
F-Score6
WACC9.67%
ROIC/WACC1.54
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 25.11 and the Price/Book (PB) ratio is 5.22.
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.