NYSE:AIT

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Applied Industrial Technologies

Executive Summary

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Applied Industrial Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AIT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AIT's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.8%

AIT

-1.2%

US Trade Distributors

0.7%

US Market


1 Year Return

20.5%

AIT

20.4%

US Trade Distributors

22.2%

US Market

Return vs Industry: AIT underperformed the US Trade Distributors industry which returned 22.4% over the past year.

Return vs Market: AIT underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

AITIndustryMarket
7 Day-4.8%-1.2%0.7%
30 Day19.3%15.2%11.8%
90 Day24.6%16.3%8.6%
1 Year23.0%20.5%23.0%20.4%25.0%22.2%
3 Year27.7%20.4%35.0%28.3%49.4%39.5%
5 Year111.5%90.8%97.6%82.7%100.2%78.1%

Long-Term Price Volatility Vs. Market

How volatile is Applied Industrial Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Applied Industrial Technologies undervalued compared to its fair value and its price relative to the market?

147.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AIT ($76.55) is trading above our estimate of fair value ($19.84)

Significantly Below Fair Value: AIT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AIT is poor value based on its PE Ratio (147.9x) compared to the US Trade Distributors industry average (21.9x).

PE vs Market: AIT is poor value based on its PE Ratio (147.9x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: AIT is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: AIT is overvalued based on its PB Ratio (3.4x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is Applied Industrial Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

60.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIT's forecast earnings growth (60.9% per year) is above the savings rate (2.2%).

Earnings vs Market: AIT's earnings (60.9% per year) are forecast to grow faster than the US market (21.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AIT's revenue (3.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: AIT's revenue (3.8% 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 AIT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Applied Industrial Technologies performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIT has a large one-off loss of $138.5M impacting its September 30 2020 financial results.

Growing Profit Margin: AIT's current net profit margins (0.6%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: AIT's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: AIT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AIT had negative earnings growth (-85%) over the past year, making it difficult to compare to the Trade Distributors industry average (-6.9%).


Return on Equity

High ROE: AIT's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Applied Industrial Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: AIT's short term assets ($1.1B) exceed its short term liabilities ($414.1M).

Long Term Liabilities: AIT's short term assets ($1.1B) exceed its long term liabilities ($949.8M).


Debt to Equity History and Analysis

Debt Level: AIT's debt to equity ratio (87.7%) is considered high.

Reducing Debt: AIT's debt to equity ratio has increased from 50.1% to 87.7% over the past 5 years.

Debt Coverage: AIT's debt is well covered by operating cash flow (42.3%).

Interest Coverage: AIT's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Applied Industrial Technologies's current dividend yield, its reliability and sustainability?

1.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AIT's dividend (1.67%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: AIT's dividend (1.67%) is low compared to the top 25% of dividend payers in the US market (4.14%).


Stability and Growth of Payments

Stable Dividend: AIT's dividends per share have been stable in the past 10 years.

Growing Dividend: AIT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (245.3%), AIT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Neil Schrimsher (56 yo)

9.17yrs

Tenure

US$4,707,804

Compensation

Mr. Neil A. Schrimsher has been the Chief Executive Officer of Applied Industrial Technologies, Inc. since October 25, 2011 and its President since August 2013. Mr. Schrimsher's managerial experience inclu...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD4.71M) is about average for companies of similar size in the US market ($USD5.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Neil Schrimsher
President9.17yrsUS$4.71m0.55%
$ 16.6m
David Wells
VP, CFO & Treasurer3.33yrsUS$1.23m0.038%
$ 1.1m
Fred Bauer
VP, General Counsel & Secretary18.67yrsUS$2.02m0.27%
$ 8.1m
Kurt Loring
VP & Chief Human Resource Officer6.42yrsUS$965.36k0.060%
$ 1.8m
Warren Hoffner
VP and GM of Fluid Power & Flow Control17.5yrsUS$1.00m0.092%
$ 2.8m
Ryan Cieslak
Director of Investor Relations & Assistant Treasurer1.75yrsno datano data
Julie Kho
Manager of Corporate Communications & Media Relationsno datano datano data
Joe Mangiapane
Managing Director of Australia & New Zealandno datano datano data
Christopher Macey
Corporate Controller5.67yrsno data0.023%
$ 694.6k
Mike Allen
President of Applied Industrial Technologiesno datano datano data
Sergio Nevárez
President of Applied Mexicono datano datano data

6.4yrs

Average Tenure

55yo

Average Age

Experienced Management: AIT's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Neil Schrimsher
President9.17yrsUS$4.71m0.55%
$ 16.6m
Peter Wallace
Independent Chairman of the Board6.17yrsUS$296.53k0.051%
$ 1.5m
Peter Dorsman
Independent Director18.42yrsUS$229.55k0.014%
$ 431.9k
Dan Komnenovich
Independent Director8.42yrsUS$215.30k0.055%
$ 1.6m
Vincent Petrella
Independent Director8.42yrsUS$234.30k0.041%
$ 1.2m
Robert Pagano
Independent Director3.33yrsUS$215.30k0.016%
$ 483.7k
Joe Raver
Independent Director3.33yrsUS$215.30k0.020%
$ 601.2k
Madhuri Andrews
Independent Director1.33yrsUS$260.28k0.0074%
$ 222.6k
Mary Hall
Independent Director1.33yrsUS$260.28k0.0074%
$ 222.6k

6.2yrs

Average Tenure

60yo

Average Age

Experienced Board: AIT's board of directors are considered experienced (6.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AIT insiders have only sold shares 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

Applied Industrial Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Applied Industrial Technologies, Inc.
  • Ticker: AIT
  • Exchange: NYSE
  • Founded: 1923
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$3.012b
  • Shares outstanding: 38.76m
  • Website: https://www.applied.com

Number of Employees


Location

  • Applied Industrial Technologies, Inc.
  • 1 Applied Plaza
  • Cleveland
  • Ohio
  • 44115
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AITNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
AT4DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0HGRLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. The company offers its products for maintenance, repair, and operational, as w...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:10
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


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.