APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIT - US03820C1053 - Common Stock
272.25 USD
+7.63 (+2.88%)
272.25 USD
0 (0%)
Overall AIT gets a fundamental rating of 7 out of 10. We evaluated AIT against 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
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
Looking at the Return On Assets, with a value of 12.61%, AIT belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
AIT has a better Return On Equity (21.33%) than 80.00% of its industry peers.
The Return On Invested Capital of AIT (14.92%) is better than 88.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AIT 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 Profit Margin of 8.61%. This is in the better half of the industry: AIT outperforms 74.00% of its industry peers.
In the last couple of years the Profit Margin of AIT has grown nicely.
AIT's Operating Margin of 11.03% is fine compared to the rest of the industry. AIT outperforms 72.00% of its industry peers.
AIT's Operating Margin has improved in the last couple of years.
The Gross Margin of AIT (30.44%) 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 | 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.
The number of shares outstanding for AIT has been reduced compared to 5 years ago.
Compared to 1 year ago, AIT has an improved debt to assets ratio.
2.2 Solvency
AIT has an Altman-Z score of 8.20. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.20, AIT belongs to the best 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.
The Debt to FCF ratio of AIT (1.26) is better than 86.00% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that AIT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.30, AIT is doing good in the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 8.2 |
ROIC/WACC1.54
WACC9.66%
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.
AIT has a Current ratio of 3.55. This is in the better half of the industry: AIT outperforms 80.00% of its industry peers.
A Quick Ratio of 2.50 indicates that AIT has no problem at all paying its short term obligations.
AIT's Quick ratio of 2.50 is amongst the best of the industry. AIT outperforms 88.00% 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.
AIT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.03%.
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
AIT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.12% yearly.
Based on estimates for the next years, AIT will show a small growth in Revenue. The Revenue will grow by 5.55% on average per year.
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 26.20, which means the current valuation is very expensive for AIT.
The rest of the industry has a similar Price/Earnings ratio as AIT.
When comparing the Price/Earnings ratio of AIT to the average of the S&P500 Index (27.19), we can say AIT is valued inline with the index average.
AIT is valuated rather expensively with a Price/Forward Earnings ratio of 23.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, AIT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.2 | ||
| Fwd PE | 23.26 |
4.2 Price Multiples
AIT's Enterprise Value to EBITDA ratio is in line with the industry average.
78.00% of the companies in the same industry are more expensive than AIT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.57 | ||
| EV/EBITDA | 17.53 |
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)4.02
PEG (5Y)1.21
EPS Next 2Y7.55%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
AIT has a yearly dividend return of 0.70%, which is pretty low.
AIT's Dividend Yield is comparable with the industry average which is at 1.21.
Compared to an average S&P500 Dividend Yield of 1.90, 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
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%
272.25
+7.63 (+2.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners95.71%
Inst Owner Change0%
Ins Owners0.84%
Ins Owner Change-2.59%
Market Cap10.27B
Revenue(TTM)4.66B
Net Income(TTM)401.73M
Analysts81.54
Price Target302.35 (11.06%)
Short Float %2.49%
Short Ratio3.19
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-DateN/A
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%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.2 | ||
| Fwd PE | 23.26 | ||
| P/S | 2.2 | ||
| P/FCF | 22.57 | ||
| P/OCF | 21.22 | ||
| P/B | 5.45 | ||
| P/tB | 12.15 | ||
| EV/EBITDA | 17.53 |
EPS(TTM)10.39
EY3.82%
EPS(NY)11.71
Fwd EY4.3%
FCF(TTM)12.06
FCFY4.43%
OCF(TTM)12.83
OCFY4.71%
SpS123.65
BVpS49.94
TBVpS22.4
PEG (NY)4.02
PEG (5Y)1.21
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
WACC9.66%
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.
Can you provide the valuation status for APPLIED INDUSTRIAL TECH INC?
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.
Can you provide the financial health for AIT stock?
The financial health rating of APPLIED INDUSTRIAL TECH INC (AIT) is 9 / 10.
How sustainable is the dividend of APPLIED INDUSTRIAL TECH INC (AIT) stock?
The dividend rating of APPLIED INDUSTRIAL TECH INC (AIT) is 5 / 10 and the dividend payout ratio is 16.64%.