Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore.
Established dividend payer with adequate balance sheet.
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's share price has been volatile over the past 3 months.
7 Day Return
US Trade Distributors
1 Year Return
US Trade Distributors
Return vs Industry: AIT exceeded the US Trade Distributors industry which returned -24.5% over the past year.
Return vs Market: AIT underperformed the US Market which returned -10.7% over the past year.
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
4 days ago | Simply Wall StIs Applied Industrial Technologies, Inc.'s (NYSE:AIT) CEO Overpaid Relative To Its Peers?
1 week ago | Simply Wall StA Sliding Share Price Has Us Looking At Applied Industrial Technologies, Inc.'s (NYSE:AIT) P/E Ratio
Is Applied Industrial Technologies undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AIT ($45.72) is trading below our estimate of fair value ($50.33)
Significantly Below Fair Value: AIT is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AIT is poor value based on its PE Ratio (13.3x) compared to the Trade Distributors industry average (10.8x).
PE vs Market: AIT is poor value based on its PE Ratio (13.3x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: AIT is poor value based on its PEG Ratio (4.7x)
Price to Book Ratio
PB vs Industry: AIT is overvalued based on its PB Ratio (1.8x) compared to the US Trade Distributors industry average (0.9x).
How is Applied Industrial Technologies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AIT's forecast earnings growth (2.8% per year) is above the savings rate (1.7%).
Earnings vs Market: AIT's earnings (2.8% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: AIT's earnings are forecast to grow, but not significantly.
Revenue vs Market: AIT's revenue is expected to decline over the next 3 years (-1.9% per year).
High Growth Revenue: AIT's revenue is forecast to decline over the next 3 years (-1.9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AIT's Return on Equity is forecast to be low in 3 years time (11.5%).
How has Applied Industrial Technologies performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AIT has high quality earnings.
Growing Profit Margin: AIT's current net profit margins (3.9%) are lower than last year (4.8%).
Past Earnings Growth Analysis
Earnings Trend: AIT's earnings have grown by 12.8% 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 (-19.1%) over the past year, making it difficult to compare to the Trade Distributors industry average (5.1%).
Return on Equity
High ROE: AIT's Return on Equity (13.8%) is considered low.
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 ($420.7M).
Long Term Liabilities: AIT's short term assets ($1.1B) exceed its long term liabilities ($1.0B).
Debt to Equity History and Analysis
Debt Level: AIT's debt to equity ratio (98.5%) is considered high.
Reducing Debt: AIT's debt to equity ratio has increased from 44.8% to 98.5% over the past 5 years.
Debt Coverage: AIT's debt is well covered by operating cash flow (23.2%).
Interest Coverage: AIT's interest payments on its debt are well covered by EBIT (6.6x coverage).
Inventory Level: AIT has a high level of physical assets or inventory.
Debt Coverage by Assets: AIT's debt is covered by short term assets (assets are 1.2x debt).
What is Applied Industrial Technologies's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AIT's dividend (2.8%) is higher than the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: AIT's dividend (2.8%) is low compared to the top 25% of dividend payers in the US market (5.37%).
Stability and Growth of Payments
Stable Dividend: AIT's dividends per share have been stable in the past 10 years.
Growing Dividend: AIT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (36%), AIT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AIT's dividends in 3 years are forecast to be well covered by earnings (34.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Neil Schrimsher (55yo)
Mr. Neil A. Schrimsher has been the Chief Executive Officer of Applied Industrial Technologies, Inc. since October 25, 2011 and its President since August 2013. Mr. Schrimsher's managerial experience inclu ...
CEO Compensation Analysis
Compensation vs Market: Neil's total compensation ($USD4.49M) is about average for companies of similar size in the US market ($USD4.61M).
Compensation vs Earnings: Neil's compensation has been consistent with company performance over the past year.
|VP, CFO & Treasurer||2.58yrs||US$1.15m||0.033% $581.4k|
|VP, General Counsel & Secretary||17.92yrs||US$1.23m||0.24% $4.2m|
|VP & Chief Human Resource Officer||5.67yrs||US$926.62k||0.040% $699.0k|
|VP and GM of Fluid Power & Flow Control||16.75yrs||US$912.89k||0.074% $1.3m|
|Director of Investor Relations & Assistant Treasurer||1yr||no data||no data|
|Manager of Corporate Communications & Media Relations||no data||no data||no data|
|Managing Director of Australia & New Zealand||no data||no data||no data|
|Corporate Controller||4.92yrs||no data||0.010% $185.0k|
|President of Applied Industrial Technologies||no data||no data||no data|
Experienced Management: AIT's management team is seasoned and experienced (5.7 years average tenure).
|Independent Chairman of the Board||5.42yrs||US$280.03k||0.073% $1.3m|
|Independent Director||17.67yrs||US$219.49k||0.031% $552.8k|
|Independent Director||7.67yrs||US$205.74k||0.055% $968.5k|
|Independent Director||7.67yrs||US$224.49k||0.041% $720.6k|
|Independent Director||2.58yrs||US$205.74k||0.016% $281.3k|
|Independent Director||2.58yrs||US$205.74k||0.020% $353.9k|
|Independent Director||0.58yr||no data||0.0074% $130.9k|
|Independent Director||0.58yr||no data||0.0074% $130.9k|
Experienced Board: AIT's board of directors are considered experienced (5.4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Applied Industrial Technologies, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Applied Industrial Technologies, Inc.
- Ticker: AIT
- Exchange: NYSE
- Founded: 1923
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: US$1.768b
- Shares outstanding: 38.68m
- Website: https://www.applied.com
Number of Employees
- Applied Industrial Technologies, Inc.
- 1 Applied Plaza
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AIT||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|AT4||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|0HGR||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|AT4||BRSE (Berne Stock Exchange)||Yes||Common Stock||CH||CHF||Jan 1968|
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 well as original equipment manufacturing customers. It operates in two segments, Service Center Based Distribution, and Fluid Power & Flow Control. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, industrial rubber products, linear motion components, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and designs and assembles hydraulic and electro-hydraulic power units and control systems, electronic control systems, pneumatic and electro-pneumatic panels and sub-assemblies, fabricated aluminum assemblies, lubrication systems, hydraulic manifolds, and pump assemblies, as well as provides equipment repair services. It also operates fabricated rubber shops that modify and repair conveyor belts, as well as offer hose assemblies; and rubber service field crews to install and repair conveyor belts and rubber lining at customer locations. In addition, the company rebuilds or assembles speed reducers, pumps, valves, cylinders, and electric and hydraulic motors, as well as custom machining products; and offers technical support services. It offers industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, mining, oil and gas, primary metals, transportation, and utilities, as well as to government entities. Applied Industrial Technologies, Inc. was founded in 1923 and is headquartered in Cleveland, Ohio.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/01 00:45|
|End of Day Share Price||2020/03/31 00:00|
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.