AIT:NYE-Applied Industrial Technologies, Inc (USD)

COMMON STOCK | Industrial Distribution | NYE

Last Closing Price

USD 80.52

Change

+0.14 (+0.17)%

Market Cap

USD 3.12B

Volume

0.05M

Average Target Price

USD 76.33 (-5.20%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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, machinery and robotics automation products, industrial rubber products, linear motion components, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and offers motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company offers equipment repair and 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.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-11-27 )

Largest Industry Peers for Industrial Distribution

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
GWW W.W. Grainger, Inc

N/A

USD22.25B 35.82 21.18
WSO-B Watsco, Inc

N/A

USD8.77B 34.22 22.15
WSO Watsco, Inc

-0.66 (-0.29%)

USD8.63B 34.24 22.15
SITE SiteOne Landscape Supply, Inc

+3.90 (+2.91%)

USD5.93B 53.31 28.88
MSM MSC Industrial Direct Co., Inc

+1.61 (+1.89%)

USD4.75B 18.93 12.34
AXE Anixter International Inc

N/A

USD3.33B 12.94 10.77
WCC WESCO International, Inc

+0.44 (+0.66%)

USD3.32B 24.97 18.59
SYX Systemax Inc

-0.17 (-0.54%)

USD1.17B 19.61 14.74
FBM Foundation Building Materials,..

+0.03 (+0.16%)

USD0.83B 18.31 8.51
EVI EVI Industries, Inc

-0.74 (-2.15%)

USD0.45B 625.45 67.93

ETFs Containing AIT

Symbol Name Weight Mer Price(Change) Market Cap
PSCI Invesco S&P SmallCap Indu.. 0.00 % 0.29 %

-0.23 (-0.30%)

USD0.05B

Market Performance

  Market Performance vs.
Industry/Classification (Industrial Distribution)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 20.74% 40% F 84% B
Dividend Return 1.92% 33% F 48% F
Total Return 22.66% 40% F 84% B
Trailing 12 Months  
Capital Gain 26.11% 50% F 85% B
Dividend Return 2.00% 50% F 44% F
Total Return 28.11% 50% F 85% B
Trailing 5 Years  
Capital Gain 90.63% 71% C- 84% B
Dividend Return 13.52% 50% F 46% F
Total Return 104.14% 71% C- 84% B
Average Annual (5 Year Horizon)  
Capital Gain 11.08% N/A N/A 81% B-
Dividend Return 2.01% N/A N/A 53% F
Total Return 13.09% N/A N/A 81% B-
Risk Return Profile  
Volatility (Standard Deviation) 24.55% N/A N/A 30% F
Risk Adjusted Return 53.32% N/A N/A 70% C-
Market Capitalization 3.12B 40% F 69% D+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Industrial Distribution)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 150.27 20% F 4% F
Price/Book Ratio 3.36 80% B- 25% F
Price / Cash Flow Ratio 10.50 90% A- 37% F
EV/EBITDA 24.45 30% F 21% F
Management Effectiveness  
Return on Equity 2.21% 20% F 42% F
Return on Invested Capital 3.18% 20% F 35% F
Return on Assets 5.84% 40% F 85% B
Debt to Equity Ratio 101.38% 44% F 34% F
Technical Ratios  
Short Ratio 2.47 80% B- 43% F
Short Percent 1.48% 80% B- 75% C
Beta 1.36 30% F 30% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.