APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
NYSE:AIT - US03820C1053 - Common Stock
263.58 USD
-2.89 (-1.08%)
263.58 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to AIT. AIT was compared to 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. 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.
In the past year AIT had a positive cash flow from operations.
Each year in the past 5 years AIT has been profitable.
AIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AIT (12.38%) is better than 96.00% of its industry peers.
AIT's Return On Equity of 21.31% is fine compared to the rest of the industry. AIT outperforms 78.00% of its industry peers.
AIT has a Return On Invested Capital of 14.67%. This is amongst the best in the industry. AIT outperforms 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 10.00%.
| 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.
In the last couple of years the Profit Margin of AIT has grown nicely.
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.
Looking at the Gross Margin, with a value of 30.31%, AIT is in line with its industry, outperforming 50.00% of the companies in the same 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 | 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.
AIT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AIT has less shares outstanding
The debt/assets ratio for AIT has been reduced compared to a year ago.
2.2 Solvency
AIT has an Altman-Z score of 7.98. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AIT (7.98) is better than 92.00% of its industry peers.
AIT has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.23, AIT belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that AIT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, AIT is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 7.98 |
ROIC/WACC1.55
WACC9.48%
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.
With an excellent Quick ratio value of 2.36, AIT belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
AIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.95%.
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 small growth in Earnings Per Share. The EPS will grow by 7.64% on average per year.
AIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.15% yearly.
EPS Next Y5.52%
EPS Next 2Y7.34%
EPS Next 3Y7.64%
EPS Next 5YN/A
Revenue Next Year6.76%
Revenue Next 2Y6.19%
Revenue Next 3Y5.15%
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.
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 26.05, AIT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AIT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AIT to the average of the S&P500 Index (27.13), we can say AIT is valued inline with the index average.
The Price/Forward Earnings ratio is 24.68, which indicates a rather expensive current valuation of AIT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIT indicates a slightly more expensive valuation: AIT is more expensive than 62.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AIT to the average of the S&P500 Index (22.76), we can say AIT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 24.68 |
4.2 Price Multiples
AIT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AIT is more expensive than 60.00% of the companies in the same industry.
AIT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AIT is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.39 | ||
| EV/EBITDA | 18.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AIT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.71
PEG (5Y)1.21
EPS Next 2Y7.34%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
AIT has a yearly dividend return of 0.69%, which is pretty low.
Compared to an average industry Dividend Yield of 1.69, AIT has a dividend in line with its industry peers.
With a Dividend Yield of 0.69, AIT pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of AIT has a limited annual growth rate of 3.44%.
AIT has been paying a dividend for at least 10 years, so it has a reliable track record.
AIT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.44%
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 3Y7.64%
263.58
-2.89 (-1.08%)
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-3.3%
Market Cap9.95B
Analysts83.08
Price Target297.44 (12.85%)
Short Float %2.18%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend1.45
Dividend Growth(5Y)3.44%
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)4.95%
PT rev (3m)4.95%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)2.48%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 24.68 | ||
| P/S | 2.18 | ||
| P/FCF | 21.39 | ||
| P/OCF | 20.21 | ||
| P/B | 5.39 | ||
| P/tB | 12.49 | ||
| EV/EBITDA | 18.13 |
EPS(TTM)10.12
EY3.84%
EPS(NY)10.68
Fwd EY4.05%
FCF(TTM)12.32
FCFY4.68%
OCF(TTM)13.04
OCFY4.95%
SpS120.89
BVpS48.86
TBVpS21.1
PEG (NY)4.71
PEG (5Y)1.21
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 | 7.98 |
F-Score6
WACC9.48%
ROIC/WACC1.55
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 3Y7.64%
EPS Next 5YN/A
Revenue 1Y (TTM)1.88%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%5.52%
Revenue Next Year6.76%
Revenue Next 2Y6.19%
Revenue Next 3Y5.15%
Revenue Next 5YN/A
EBIT growth 1Y0.54%
EBIT growth 3Y11.68%
EBIT growth 5Y16.83%
EBIT Next Year22.33%
EBIT Next 3Y11.34%
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%