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AIMC

Altra Industrial MotionNasdaqGS:AIMC Stock Report

Market Cap

US$3.5b

7D

-0.7%

1Y

22.2%

Updated

22 Oct, 2021

Data

Company Financials +
AIMC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends0/6

AIMC Overview

Altra Industrial Motion Corp. designs, produces, and markets a range of electromechanical power transmission motion control products for use in various motion related applications, and high-volume manufacturing and non-manufacturing processes worldwide.

Altra Industrial Motion Competitors

Parker-Hannifin

NYSE:PH

US$38.6b

Colfax

NYSE:CFX

US$7.3b

Timken

NYSE:TKR

US$5.5b

Barnes Group

NYSE:B

US$2.1b

Price History & Performance

Summary of all time highs, changes and price drops for Altra Industrial Motion
Historical stock prices
Current Share PriceUS$54.76
52 Week HighUS$41.14
52 Week LowUS$68.07
Beta2.5
1 Month Change3.93%
3 Month Change-11.96%
1 Year Change22.18%
3 Year Change73.51%
5 Year Change86.58%
Change since IPO283.21%

Recent News & Updates

Sep 18
Here's Why Altra Industrial Motion (NASDAQ:AIMC) Can Manage Its Debt Responsibly

Here's Why Altra Industrial Motion (NASDAQ:AIMC) Can Manage Its Debt Responsibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 23
An Intrinsic Calculation For Altra Industrial Motion Corp. (NASDAQ:AIMC) Suggests It's 23% Undervalued

An Intrinsic Calculation For Altra Industrial Motion Corp. (NASDAQ:AIMC) Suggests It's 23% Undervalued

Today we will run through one way of estimating the intrinsic value of Altra Industrial Motion Corp. ( NASDAQ:AIMC ) by...

Aug 12

Altra Industrial Motion Not Just A Play On Recovery Themes

Altra beat second quarter sell-side expectations, but came up a bit short on margins with cost/supply chain headwinds; relative to peers, the results were very much in line. Altra is seeing strong demand in most of its markets, including factory automation, transportation, and material handling, and automation and renewables demand should have legs. Margin improvement remains high on the to-do list, with a meaningful gap in the underlying profitability of PTT and A&S, but opportunities to improve PTT further. Few industrial stocks are obviously cheap, but Altra should have near-term upside to around $70/share, and mid-to-high single-digit long-term annualized potential that's a little better than the average industrial.

Shareholder Returns

AIMCUS MachineryUS Market
7D-0.7%1.6%1.7%
1Y22.2%25.9%30.3%

Return vs Industry: AIMC underperformed the US Machinery industry which returned 27.1% over the past year.

Return vs Market: AIMC underperformed the US Market which returned 31.1% over the past year.

Price Volatility

Is AIMC's price volatile compared to industry and market?
AIMC volatility
AIMC Beta2.5
Industry Beta1.26
Market Beta1

Stable Share Price: AIMC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AIMC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20049,114Carl Christensonhttps://www.altramotion.com

Altra Industrial Motion Corp. designs, produces, and markets a range of electromechanical power transmission motion control products for use in various motion related applications, and high-volume manufacturing and non-manufacturing processes worldwide. It operates in two segments, Power Transmission Technologies (PTT) and Automation & Specialty (A&S). The PTT segment offers couplings, such as gear couplings, diaphragm and disc couplings, elastomeric couplings, miniature and precision couplings, universal joints, mill spindles, and shaft locking devices under the Ameridrives, Bibby, Guardian, Huco, Lamiflex, Stromag, and TB Wood’s brands; clutches and brakes under the Industrial Clutch, Formsprag, Stieber, Stromag, Svendborg, Twiflex, and Wichita brands; electromagnetic clutches and brakes under the Inertia Dynamics, Matrix, Stromag, and Warner Electric brands; and gears under the Bauer Gear Motor, Boston Gear, Delroyd, and Nuttall brands.

Altra Industrial Motion Fundamentals Summary

How do Altra Industrial Motion's earnings and revenue compare to its market cap?
AIMC fundamental statistics
Market CapUS$3.55b
Earnings (TTM)US$149.50m
Revenue (TTM)US$1.85b

23.7x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIMC income statement (TTM)
RevenueUS$1.85b
Cost of RevenueUS$1.18b
Gross ProfitUS$673.60m
ExpensesUS$524.10m
EarningsUS$149.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 22, 2021

Earnings per share (EPS)2.31
Gross Margin36.38%
Net Profit Margin8.07%
Debt/Equity Ratio67.0%

How did AIMC perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

10%

Payout Ratio

Does AIMC pay a reliable dividends?

See AIMC dividend history and benchmarks

Valuation

Is Altra Industrial Motion undervalued compared to its fair value and its price relative to the market?

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIMC ($54.76) is trading below our estimate of fair value ($80.27)

Significantly Below Fair Value: AIMC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AIMC is good value based on its PE Ratio (23.7x) compared to the US Machinery industry average (29.9x).

PE vs Market: AIMC is poor value based on its PE Ratio (23.7x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: AIMC is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: AIMC is good value based on its PB Ratio (1.7x) compared to the US Machinery industry average (2.9x).


Future Growth

How is Altra Industrial Motion forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIMC's forecast earnings growth (17.4% per year) is above the savings rate (2%).

Earnings vs Market: AIMC's earnings (17.4% per year) are forecast to grow faster than the US market (15.1% per year).

High Growth Earnings: AIMC's earnings are forecast to grow, but not significantly.

Revenue vs Market: AIMC's revenue (6.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AIMC's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AIMC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Altra Industrial Motion performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIMC has high quality earnings.

Growing Profit Margin: AIMC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AIMC's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: AIMC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AIMC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (21.7%).


Return on Equity

High ROE: AIMC's Return on Equity (7.3%) is considered low.


Financial Health

How is Altra Industrial Motion's financial position?


Financial Position Analysis

Short Term Liabilities: AIMC's short term assets ($830.6M) exceed its short term liabilities ($362.4M).

Long Term Liabilities: AIMC's short term assets ($830.6M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: AIMC's debt to equity ratio (67%) is considered high.

Reducing Debt: AIMC's debt to equity ratio has reduced from 84.5% to 67% over the past 5 years.

Debt Coverage: AIMC's debt is well covered by operating cash flow (21%).

Interest Coverage: AIMC's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

What is Altra Industrial Motion current dividend yield, its reliability and sustainability?

0.58%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 23 2021Ex Dividend DateDec 16 2021Dividend Pay DateJan 04 202219 days from Ex DividendBuy in the next 53 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AIMC's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: AIMC's dividend (0.58%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: AIMC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AIMC is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AIMC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AIMC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.5yrs

Average management tenure


CEO

Carl Christenson (61 yo)

12.75yrs

Tenure

US$6,235,013

Compensation

Mr. Carl R. Christenson has been an Independent Director of IDEX Corporation since June 17, 2019. Mr. Christenson has been the Chief Executive Officer and President of Altra Industrial Motion Corp. since J...


CEO Compensation Analysis

Compensation vs Market: Carl's total compensation ($USD6.24M) is about average for companies of similar size in the US market ($USD5.16M).

Compensation vs Earnings: Carl's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AIMC's management team is seasoned and experienced (13.5 years average tenure).


Board Members

Experienced Board: AIMC's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Altra Industrial Motion Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Altra Industrial Motion Corp.
  • Ticker: AIMC
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$3.548b
  • Shares outstanding: 64.79m
  • Website: https://www.altramotion.com

Number of Employees


Location

  • Altra Industrial Motion Corp.
  • 300 Granite Street
  • Suite 201
  • Braintree
  • Massachusetts
  • 2184
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 23:05
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.