NYSE:AIT

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Applied Industrial Technologies

Market Cap

US$3.4b

Last Updated

2021/06/23 01:19 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Established dividend payer with adequate balance sheet.


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

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


Market Performance


7 Day Return

-7.4%

AIT

-1.8%

US Trade Distributors

-0.1%

US Market


1 Year Return

42.6%

AIT

59.8%

US Trade Distributors

39.0%

US Market

Return vs Industry: AIT underperformed the US Trade Distributors industry which returned 59.1% over the past year.

Return vs Market: AIT exceeded the US Market which returned 39% over the past year.


Shareholder returns

AITIndustryMarket
7 Day-7.4%-1.8%-0.1%
30 Day-10.3%-2.4%2.6%
90 Day-2.0%4.9%8.0%
1 Year45.0%42.6%63.0%59.8%41.2%39.0%
3 Year26.3%19.2%58.4%49.8%62.4%52.3%
5 Year122.5%101.8%144.3%124.3%132.3%106.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIT ($87.56) is trading below our estimate of fair value ($199.03)

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


Price To Earnings Ratio

PE vs Industry: AIT is poor value based on its PE Ratio (29.4x) compared to the US Trade Distributors industry average (26.1x).

PE vs Market: AIT is poor value based on its PE Ratio (29.4x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: AIT is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: AIT is overvalued based on its PB Ratio (3.6x) compared to the US Trade Distributors industry average (2.4x).


Future Growth

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

25.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIT's forecast earnings growth (25.7% per year) is above the savings rate (2%).

Earnings vs Market: AIT's earnings (25.7% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: AIT's revenue (7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: AIT's revenue (7% 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


Past Performance

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

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIT has a large one-off loss of $58.8M impacting its March 31 2021 financial results.

Growing Profit Margin: AIT's current net profit margins (3.8%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: AIT's earnings have declined by 1.5% per year over the past 5 years.

Accelerating Growth: AIT's earnings growth over the past year (241.2%) exceeds its 5-year average (-1.5% per year).

Earnings vs Industry: AIT earnings growth over the past year (241.2%) exceeded the Trade Distributors industry 10%.


Return on Equity

High ROE: AIT's Return on Equity (12.4%) is considered low.


Financial Health

How is Applied Industrial Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: AIT's short term assets ($1.2B) exceed its short term liabilities ($465.7M).

Long Term Liabilities: AIT's short term assets ($1.2B) exceed its long term liabilities ($904.7M).


Debt to Equity History and Analysis

Debt Level: AIT's debt to equity ratio (81%) is considered high.

Reducing Debt: AIT's debt to equity ratio has increased from 56.4% to 81% over the past 5 years.

Debt Coverage: AIT's debt is well covered by operating cash flow (43.7%).

Interest Coverage: AIT's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


Dividend

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

1.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AIT's dividend (1.51%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: AIT's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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 (43.3%), 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 (24.6% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Neil Schrimsher (56 yo)

9.67yrs

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 ($USD4.71M) is about average for companies of similar size in the US market ($USD5.35M).

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


Leadership Team

Experienced Management: AIT's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: AIT's board of directors are considered experienced (6.7 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$3.378b
  • Shares outstanding: 38.86m
  • Website: https://www.applied.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/23 01:19
End of Day Share Price2021/06/22 00:00
Earnings2021/03/31
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.