APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
NYSE:AIT - New York Stock Exchange, Inc. - US03820C1053 - Common Stock - Currency: USD
Taking everything into account, AIT scores 6 out of 10 in our fundamental rating. AIT was compared to 48 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 does not seem to be growing, but still is valued expensively.
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.
AIT had positive earnings in each of the past 5 years.
In the past 5 years AIT always reported a positive cash flow from operatings.
1.2 Ratios
AIT has a better Return On Assets (12.47%) than 95.83% of its industry peers.
AIT's Return On Equity of 21.27% is fine compared to the rest of the industry. AIT outperforms 79.17% of its industry peers.
The Return On Invested Capital of AIT (14.71%) is better than 87.50% 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 9.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.47% | ||
| ROE | 21.27% | ||
| ROIC | 14.71% |
ROA(3y)12.07%
ROA(5y)8.73%
ROE(3y)23%
ROE(5y)17.48%
ROIC(3y)15.46%
ROIC(5y)13.38%
1.3 Margins
With an excellent Profit Margin value of 8.64%, AIT belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
AIT's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 11.17%, AIT is doing good in the industry, outperforming 72.92% 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 30.33%. This is comparable to the rest of the industry: AIT outperforms 45.83% 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 | 11.17% | ||
| PM (TTM) | 8.64% | ||
| GM | 30.33% |
OM growth 3Y10.87%
OM growth 5Y7.5%
PM growth 3Y24.39%
PM growth 5Y15.74%
GM growth 3Y0.8%
GM growth 5Y0.55%
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.
AIT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.16 indicates that AIT is not in any danger for bankruptcy at the moment.
AIT's Altman-Z score of 8.16 is amongst the best of the industry. AIT outperforms 91.67% of its industry peers.
The Debt to FCF ratio of AIT is 1.30, which is an excellent value as it means it would take AIT, only 1.30 years of fcf income to pay off all of its debts.
AIT has a better Debt to FCF ratio (1.30) than 81.25% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that AIT is not too dependend on debt financing.
AIT has a Debt to Equity ratio (0.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 8.16 |
ROIC/WACC1.44
WACC10.2%
2.3 Liquidity
A Current Ratio of 3.57 indicates that AIT has no problem at all paying its short term obligations.
AIT has a better Current ratio (3.57) than 81.25% of its industry peers.
A Quick Ratio of 2.51 indicates that AIT has no problem at all paying its short term obligations.
The Quick ratio of AIT (2.51) is better than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.57 | ||
| Quick Ratio | 2.51 |
3. Growth
3.1 Past
AIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.40%.
AIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.45% yearly.
The Revenue has been growing slightly by 0.50% in the past year.
The Revenue has been growing slightly by 5.22% on average over the past years.
EPS 1Y (TTM)4.4%
EPS 3Y28.07%
EPS 5Y16.45%
EPS Q2Q%3.63%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y11.45%
Revenue growth 5Y5.22%
Sales Q2Q%1.78%
3.2 Future
AIT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.62% yearly.
AIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y2.28%
EPS Next 2Y4.43%
EPS Next 3Y6.29%
EPS Next 5Y5.62%
Revenue Next Year0.53%
Revenue Next 2Y3.1%
Revenue Next 3Y3.95%
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
A Price/Earnings ratio of 26.17 indicates a quite expensive valuation of AIT.
AIT's Price/Earnings ratio is in line with the industry average.
AIT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.50.
The Price/Forward Earnings ratio is 24.32, which indicates a rather expensive current valuation of AIT.
Based on the Price/Forward Earnings ratio, AIT is valued a bit more expensive than the industry average as 64.58% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 36.44. AIT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.17 | ||
| Fwd PE | 24.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIT is valued a bit more expensive than the industry average as 64.58% of the companies are valued more cheaply.
70.83% 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 | 22.63 | ||
| EV/EBITDA | 18.21 |
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)11.46
PEG (5Y)1.59
EPS Next 2Y4.43%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
AIT has a yearly dividend return of 0.72%, which is pretty low.
AIT's Dividend Yield is comparable with the industry average which is at 2.02.
With a Dividend Yield of 0.72, AIT pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 15.57% 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.
DP15.57%
EPS Next 2Y4.43%
EPS Next 3Y6.29%
260.7
-1.23 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners97.8%
Inst Owner Change0%
Ins Owners0.87%
Ins Owner Change-0.75%
Market Cap9.93B
Analysts83.33
Price Target283.41 (8.71%)
Short Float %1.74%
Short Ratio1.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend1.45
Dividend Growth(5Y)3.44%
DP15.57%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.24%
Min EPS beat(2)5.58%
Max EPS beat(2)6.89%
EPS beat(4)4
Avg EPS beat(4)5.11%
Min EPS beat(4)3.74%
Max EPS beat(4)6.89%
EPS beat(8)8
Avg EPS beat(8)6.51%
EPS beat(12)12
Avg EPS beat(12)10.59%
EPS beat(16)16
Avg EPS beat(16)13.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-1.29%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)-0.19%
Revenue beat(8)3
Avg Revenue beat(8)-0.48%
Revenue beat(12)7
Avg Revenue beat(12)1.34%
Revenue beat(16)11
Avg Revenue beat(16)1.81%
PT rev (1m)0%
PT rev (3m)-4.66%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.17 | ||
| Fwd PE | 24.32 | ||
| P/S | 2.21 | ||
| P/FCF | 22.63 | ||
| P/OCF | 21.37 | ||
| P/B | 5.43 | ||
| P/tB | 12.69 | ||
| EV/EBITDA | 18.21 |
EPS(TTM)9.96
EY3.82%
EPS(NY)10.72
Fwd EY4.11%
FCF(TTM)11.52
FCFY4.42%
OCF(TTM)12.2
OCFY4.68%
SpS118.16
BVpS47.99
TBVpS20.54
PEG (NY)11.46
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.47% | ||
| ROE | 21.27% | ||
| ROCE | 19.03% | ||
| ROIC | 14.71% | ||
| ROICexc | 16.97% | ||
| ROICexgc | 31.24% | ||
| OM | 11.17% | ||
| PM (TTM) | 8.64% | ||
| GM | 30.33% | ||
| FCFM | 9.75% |
ROA(3y)12.07%
ROA(5y)8.73%
ROE(3y)23%
ROE(5y)17.48%
ROIC(3y)15.46%
ROIC(5y)13.38%
ROICexc(3y)18.18%
ROICexc(5y)15.7%
ROICexgc(3y)32.67%
ROICexgc(5y)30.06%
ROCE(3y)20.01%
ROCE(5y)17.32%
ROICexcg growth 3Y7.79%
ROICexcg growth 5Y4.83%
ROICexc growth 3Y14.57%
ROICexc growth 5Y10.87%
OM growth 3Y10.87%
OM growth 5Y7.5%
PM growth 3Y24.39%
PM growth 5Y15.74%
GM growth 3Y0.8%
GM growth 5Y0.55%
F-Score6
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.3 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 45.27% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.99% | ||
| Profit Quality | 112.9% | ||
| Current Ratio | 3.57 | ||
| Quick Ratio | 2.51 | ||
| Altman-Z | 8.16 |
F-Score6
WACC10.2%
ROIC/WACC1.44
Cap/Depr(3y)43.72%
Cap/Depr(5y)38.4%
Cap/Sales(3y)0.54%
Cap/Sales(5y)0.55%
Profit Quality(3y)82.42%
Profit Quality(5y)311.14%
High Growth Momentum
Growth
EPS 1Y (TTM)4.4%
EPS 3Y28.07%
EPS 5Y16.45%
EPS Q2Q%3.63%
EPS Next Y2.28%
EPS Next 2Y4.43%
EPS Next 3Y6.29%
EPS Next 5Y5.62%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y11.45%
Revenue growth 5Y5.22%
Sales Q2Q%1.78%
Revenue Next Year0.53%
Revenue Next 2Y3.1%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y4.03%
EBIT growth 3Y23.57%
EBIT growth 5Y13.12%
EBIT Next Year14.5%
EBIT Next 3Y11.05%
EBIT Next 5YN/A
FCF growth 1Y130.2%
FCF growth 3Y15.35%
FCF growth 5Y16.48%
OCF growth 1Y113.3%
OCF growth 3Y15.39%
OCF growth 5Y15.51%