APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA - NYSE:AIT - US03820C1053 - Common Stock
260.45 USD
-2.32 (-0.88%)
260.45 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. AIT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, AIT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AIT had positive earnings in the past year.
In the past year AIT had a positive cash flow from operations.
In the past 5 years AIT has always been profitable.
In the past 5 years AIT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AIT (12.38%) is better than 96.00% of its industry peers.
With a decent Return On Equity value of 21.31%, AIT is doing good in the industry, outperforming 78.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.67%, AIT belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
AIT had an Average Return On Invested Capital over the past 3 years of 15.73%. This is significantly above the industry average of 10.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 21.31% | ||
| ROIC | 14.67% |
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
Looking at the Profit Margin, with a value of 8.61%, AIT is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
AIT's Profit Margin has improved in the last couple of years.
AIT has a better Operating Margin (10.92%) than 74.00% of its industry peers.
In the last couple of years the Operating Margin of AIT has grown nicely.
AIT's Gross Margin of 30.31% is in line compared to the rest of the industry. AIT outperforms 50.00% of 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 | 10.92% | ||
| PM (TTM) | 8.61% | ||
| GM | 30.31% |
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.
Compared to 1 year ago, AIT has less shares outstanding
The number of shares outstanding for AIT has been reduced compared to 5 years ago.
AIT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.93 indicates that AIT is not in any danger for bankruptcy at the moment.
AIT has a better Altman-Z score (7.93) than 92.00% of its industry peers.
The Debt to FCF ratio of AIT is 1.23, which is an excellent value as it means it would take AIT, only 1.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AIT (1.23) is better than 84.00% of its industry peers.
AIT has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
AIT's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. AIT outperforms 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 7.93 |
ROIC/WACC1.54
WACC9.52%
2.3 Liquidity
A Current Ratio of 3.32 indicates that AIT has no problem at all paying its short term obligations.
AIT has a Current ratio of 3.32. This is amongst the best in the industry. AIT outperforms 84.00% of its industry peers.
A Quick Ratio of 2.36 indicates that AIT has no problem at all paying its short term obligations.
AIT has a better Quick ratio (2.36) than 86.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.95% over the past year.
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.
AIT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.88%.
The Revenue has been growing slightly by 7.05% on average over the past years.
EPS 1Y (TTM)2.95%
EPS 3Y14.97%
EPS 5Y21.58%
EPS Q2Q%6.06%
Revenue 1Y (TTM)1.88%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%5.52%
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 8.36% on average per year.
Based on estimates for the next years, AIT will show a small growth in Revenue. The Revenue will grow by 5.38% on average per year.
EPS Next Y5.52%
EPS Next 2Y7.34%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue Next Year7.18%
Revenue Next 2Y6.26%
Revenue Next 3Y5.38%
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.
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
A Price/Earnings ratio of 25.74 indicates a quite expensive valuation of AIT.
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 27.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.39, AIT is valued on the expensive side.
60.00% of the companies in the same industry are cheaper than AIT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, AIT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 24.39 |
4.2 Price Multiples
AIT's Enterprise Value to EBITDA is on the same level as the industry average.
AIT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AIT is cheaper than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.14 | ||
| EV/EBITDA | 17.92 |
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)4.66
PEG (5Y)1.19
EPS Next 2Y7.34%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
AIT has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 2.10, AIT has a dividend in line with its industry peers.
With a Dividend Yield of 0.70, AIT pays less dividend than the S&P500 average, which is at 2.38.
| 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 16.21% 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.
DP16.21%
EPS Next 2Y7.34%
EPS Next 3Y8.36%
260.45
-2.32 (-0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners98.69%
Inst Owner Change-3.94%
Ins Owners0.87%
Ins Owner Change-2.59%
Market Cap9.83B
Analysts81.54
Price Target299.35 (14.94%)
Short Float %1.88%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend1.67
Dividend Growth(5Y)5.71%
DP16.21%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.6%
Min EPS beat(2)5.58%
Max EPS beat(2)5.61%
EPS beat(4)4
Avg EPS beat(4)5.46%
Min EPS beat(4)3.74%
Max EPS beat(4)6.89%
EPS beat(8)8
Avg EPS beat(8)6.3%
EPS beat(12)12
Avg EPS beat(12)9.37%
EPS beat(16)16
Avg EPS beat(16)12.08%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)2.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)2.49%
Revenue beat(8)3
Avg Revenue beat(8)-0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.92%
Revenue beat(16)11
Avg Revenue beat(16)1.63%
PT rev (1m)4.68%
PT rev (3m)5.62%
EPS NQ rev (1m)1.17%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 24.39 | ||
| P/S | 2.15 | ||
| P/FCF | 21.14 | ||
| P/OCF | 19.97 | ||
| P/B | 5.33 | ||
| P/tB | 12.34 | ||
| EV/EBITDA | 17.92 |
EPS(TTM)10.12
EY3.89%
EPS(NY)10.68
Fwd EY4.1%
FCF(TTM)12.32
FCFY4.73%
OCF(TTM)13.04
OCFY5.01%
SpS120.89
BVpS48.86
TBVpS21.1
PEG (NY)4.66
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 21.31% | ||
| ROCE | 18.82% | ||
| ROIC | 14.67% | ||
| ROICexc | 17.19% | ||
| ROICexgc | 32.03% | ||
| OM | 10.92% | ||
| PM (TTM) | 8.61% | ||
| GM | 30.31% | ||
| FCFM | 10.19% |
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%
ROICexcg growth 3Y3.11%
ROICexcg 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 Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.23 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 44.95% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 22.84 | ||
| Cash Conversion | 88.08% | ||
| Profit Quality | 118.38% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 7.93 |
F-Score6
WACC9.52%
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)2.95%
EPS 3Y14.97%
EPS 5Y21.58%
EPS Q2Q%6.06%
EPS Next Y5.52%
EPS Next 2Y7.34%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue 1Y (TTM)1.88%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%5.52%
Revenue Next Year7.18%
Revenue Next 2Y6.26%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
EBIT growth 1Y0.54%
EBIT growth 3Y11.68%
EBIT growth 5Y16.83%
EBIT Next Year22.33%
EBIT Next 3Y11.74%
EBIT Next 5YN/A
FCF growth 1Y34.24%
FCF growth 3Y40.01%
FCF growth 5Y10.96%
OCF growth 1Y32.58%
OCF growth 3Y37.94%
OCF growth 5Y10.66%