APPLIED INDUSTRIAL TECH INC (AIT)
US03820C1053 - Common Stock
Overall AIT gets a fundamental rating of 6 out of 10. We evaluated AIT against 51 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making AIT a very profitable company, without any liquidiy or solvency issues. AIT has a correct valuation and a medium 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.
In the past 5 years AIT has always been profitable.
Each year in the past 5 years AIT had a positive operating cash flow.
1.2 Ratios
AIT has a better Return On Assets (13.46%) than 88.24% of its industry peers.
With a decent Return On Equity value of 23.28%, AIT is doing good in the industry, outperforming 72.55% of the companies in the same industry.
The Return On Invested Capital of AIT (16.25%) is better than 82.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AIT is above the industry average of 11.58%.
The last Return On Invested Capital (16.25%) for AIT is above the 3 year average (13.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.46% | ||
| ROE | 23.28% | ||
| ROIC | 16.25% |
ROA(3y)9.84%
ROA(5y)7.35%
ROE(3y)20.57%
ROE(5y)16.12%
ROIC(3y)13.98%
ROIC(5y)12.47%
1.3 Margins
AIT has a better Profit Margin (8.39%) than 66.67% 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 10.96%, AIT is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
AIT's Operating Margin has improved in the last couple of years.
AIT has a Gross Margin of 29.44%. This is comparable to the rest of the industry: AIT outperforms 47.06% of its industry peers.
AIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.96% | ||
| PM (TTM) | 8.39% | ||
| GM | 29.44% |
OM growth 3Y14.97%
OM growth 5Y7.86%
PM growth 3Y119.84%
PM growth 5Y11.26%
GM growth 3Y0.18%
GM growth 5Y0.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AIT is still creating some value.
Compared to 1 year ago, AIT has more shares outstanding
The number of shares outstanding for AIT remains at a similar level compared to 5 years ago.
Compared to 1 year ago, AIT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.24 indicates that AIT is not in any danger for bankruptcy at the moment.
AIT's Altman-Z score of 7.24 is amongst the best of the industry. AIT outperforms 92.16% of its industry peers.
The Debt to FCF ratio of AIT is 1.49, which is an excellent value as it means it would take AIT, only 1.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AIT (1.49) is better than 78.43% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that AIT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.36, AIT is doing good in the industry, outperforming 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 7.24 |
ROIC/WACC1.79
WACC9.08%
2.3 Liquidity
A Current Ratio of 3.75 indicates that AIT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.75, AIT belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
A Quick Ratio of 2.59 indicates that AIT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.59, AIT belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.75 | ||
| Quick Ratio | 2.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.08% over the past year.
The Earnings Per Share has been growing by 18.96% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.14% in the past year.
AIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.50% yearly.
EPS 1Y (TTM)22.08%
EPS 3Y32.39%
EPS 5Y18.96%
EPS growth Q2Q13.17%
Revenue 1Y (TTM)7.14%
Revenue growth 3Y10.78%
Revenue growth 5Y7.5%
Revenue growth Q2Q1.59%
3.2 Future
The Earnings Per Share is expected to grow by 7.26% on average over the next years.
Based on estimates for the next years, AIT will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
EPS Next Y10.43%
EPS Next 2Y7.4%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue Next Year2.97%
Revenue Next 2Y3.68%
Revenue Next 3Y4.14%
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
Based on the Price/Earnings ratio of 19.02, the valuation of AIT can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as AIT.
AIT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.92.
A Price/Forward Earnings ratio of 17.74 indicates a rather expensive valuation of AIT.
AIT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, AIT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 17.74 |
4.2 Price Multiples
AIT's Enterprise Value to EBITDA ratio is in line with the industry average.
72.55% 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 | 17.5 | ||
| EV/EBITDA | 13.11 |
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.
AIT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)1
EPS Next 2Y7.4%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, AIT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.71, AIT has a dividend in line with its industry peers.
With a Dividend Yield of 0.80, AIT pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
The dividend of AIT has a limited annual growth rate of 3.21%.
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)3.21%
Div Incr Years14
Div Non Decr Years16
5.3 Sustainability
14.49% 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.
DP14.49%
EPS Next 2Y7.4%
EPS Next 3Y7.26%
APPLIED INDUSTRIAL TECH INC
NYSE:AIT (4/26/2024, 7:04:00 PM)
After market: 180.89 0 (0%)180.89
+1.95 (+1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)
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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 | 19.02 | ||
| Fwd PE | 17.74 | ||
| 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)1.82
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.46% | ||
| ROE | 23.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.96% | ||
| PM (TTM) | 8.39% | ||
| GM | 29.44% | ||
| 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 Turnover1.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.75 | ||
| Quick Ratio | 2.59 | ||
| 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)22.08%
EPS 3Y32.39%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.14%
Revenue growth 3Y10.78%
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