NYSE:AIT

Stock Analysis Report

Applied Industrial Technologies

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with acceptable track record.


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


Market Performance


7 Day Return

6.2%

NYSE:AIT

3.4%

US Trade Distributors

1.1%

US Market


1 Year Return

-28.1%

NYSE:AIT

-8.2%

US Trade Distributors

2.1%

US Market

AIT underperformed the Trade Distributors industry which returned -8.2% over the past year.

AIT underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

AITIndustryMarket
7 Day6.2%3.4%1.1%
30 Day7.1%10.5%3.7%
90 Day-0.3%5.5%2.3%
1 Year-26.6%-28.1%-6.5%-8.2%4.4%2.1%
3 Year31.0%23.5%44.5%38.2%47.0%37.4%
5 Year34.5%20.6%24.8%15.9%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

9%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Applied Industrial Technologies's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Applied Industrial Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Applied Industrial Technologies is good value based on earnings compared to the US Trade Distributors industry average.

Applied Industrial Technologies is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Applied Industrial Technologies is poor value based on expected growth next year.


Price Based on Value of Assets

Applied Industrial Technologies is overvalued based on assets compared to the US Trade Distributors industry average.


Next Steps

Future Growth

How is Applied Industrial Technologies expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Applied Industrial Technologies's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).

Applied Industrial Technologies's earnings are expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).

Applied Industrial Technologies's revenue growth is positive but not above the United States of America market average.

Applied Industrial Technologies's earnings growth is positive but not above the United States of America market average.

Applied Industrial Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Applied Industrial Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

11.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Applied Industrial Technologies's year on year earnings growth rate has been positive over the past 5 years.

Applied Industrial Technologies's 1-year earnings growth is less than its 5-year average (1.7% vs 11%)

Applied Industrial Technologies's earnings growth has exceeded the US Trade Distributors industry average in the past year (1.7% vs 0.9%).


Return on Equity

Applied Industrial Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Applied Industrial Technologies used its assets more efficiently than the US Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Applied Industrial Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Applied Industrial Technologies's financial position?


Financial Position Analysis

Applied Industrial Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Applied Industrial Technologies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Applied Industrial Technologies's level of debt (106.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (21.5% vs 106.8% today).

Debt is not well covered by operating cash flow (18.9%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

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

2.21%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Applied Industrial Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Applied Industrial Technologies's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).


Next Steps

Management

What is the CEO of Applied Industrial Technologies's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Neil Schrimsher (55yo)

7.9yrs

Tenure

US$4,641,312

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

Neil's remuneration is about average for companies of similar size in United States of America.

Neil's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

53yo

Average Age

The tenure for the Applied Industrial Technologies management team is about average.


Board Age and Tenure

7.2yrs

Average Tenure

61yo

Average Age

The tenure for the Applied Industrial Technologies board of directors is about average.


Insider Trading

Applied Industrial Technologies individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$856,81830 Aug 19
Jerry Thornton
EntityIndividual
Role
Member of the Board of Directors
Director
Shares16,031
Max PriceUS$53.45
SellUS$464,46915 Nov 18
Edith Kelly-Green
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,090
Max PriceUS$65.82

Ownership Breakdown


Management Team

  • Fred Bauer (53yo)

    VP, General Counsel & Secretary

    • Tenure: 17.4yrs
    • Compensation: US$1.14m
  • Neil Schrimsher (55yo)

    President

    • Tenure: 7.9yrs
    • Compensation: US$4.64m
  • Ryan Cieslak

    Director of Investor Relations & Assistant Treasurer

    • Tenure: 0.5yrs
  • Dave Wells (57yo)

    VP, CFO & Treasurer

    • Tenure: 2.1yrs
    • Compensation: US$1.39m
  • Chris Macey (46yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 4yrs
  • Kurt Loring (50yo)

    VP & Chief Human Resource Officer

    • Tenure: 5.2yrs
    • Compensation: US$992.78k
  • Julie Kho

    Manager of Corporate Communications & Media Relations

    • Tenure: 0yrs

Board Members

  • Pete Wallace (65yo)

    Independent Chairman

    • Tenure: 4.9yrs
    • Compensation: US$243.88k
  • Peter Dorsman (63yo)

    Director

    • Tenure: 17.2yrs
    • Compensation: US$206.38k
  • Jerry Thornton (72yo)

    Director

    • Tenure: 25.7yrs
    • Compensation: US$193.88k
  • Dan Komnenovich (67yo)

    Director

    • Tenure: 7.2yrs
    • Compensation: US$193.88k
  • Edith Kelly-Green (66yo)

    Director

    • Tenure: 17.2yrs
    • Compensation: US$203.88k
  • Vince Petrella (59yo)

    Director

    • Tenure: 7.2yrs
    • Compensation: US$211.38k
  • Bob Pagano (56yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$233.84k
  • Joe Raver (53yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$233.84k
  • Neil Schrimsher (55yo)

    President

    • Tenure: 7.9yrs
    • Compensation: US$4.64m
  • Madhuri Andrews (52yo)

    Director

    • Tenure: 0.08yrs

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$2.202b
  • Shares outstanding: 38.65m
  • 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 Analysis2019/09/16 23:31
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.