AIT:NYE-Applied Industrial Technologies Inc (USD)

COMMON STOCK | Industrial Distribution | NYE

Last Closing Price

USD 85.28

Change

+2.34 (+2.82)%

Market Cap

USD 3.20B

Volume

0.10M

Avg Analyst Target

USD 105.50 (+23.71%)

Avg User Target

USD
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. It operates through 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, advanced automation products, industrial rubber products, linear motion components, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and 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 provides equipment repair and technical support services. It distributes 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, life sciences, mining, oil and gas, primary metals, technology, 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)

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Relative Returns (From:    To: 2021-09-22 )

Largest Industry Peers for Industrial Distribution

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
FERG Ferguson plc

+2.11 (+1.48%)

USD31.70B 33.78 16.14
GWW W.W. Grainger Inc

+0.91 (+0.23%)

USD20.96B 24.64 14.71
WSO Watsco Inc

+2.73 (+1.00%)

USD10.62B 30.04 19.61
WSO-B Watsco Inc

N/A

USD10.61B 30.16 19.61
SITE SiteOne Landscape Supply Inc

+4.84 (+2.42%)

USD8.89B 47.62 27.71
CNM Core & Main, Inc.

-0.87 (-3.25%)

USD6.34B 406.13 22.29
WCC WESCO International Inc

+2.77 (+2.51%)

USD5.56B 25.63 13.06
MSM MSC Industrial Direct Co. Inc

+0.68 (+0.86%)

USD4.41B 21.85 14.55
AXE Anixter International Inc

N/A

USD3.33B 12.94 10.77
GIC Global Industrial Company

+0.59 (+1.61%)

USD1.38B 19.16 16.25

ETFs Containing AIT

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

+1.64 (+1.85%)

USD0.13B

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 9.35% 56% F 51% F
Dividend Return 1.27% 40% F 36% F
Total Return 10.62% 56% F 49% F
Trailing 12 Months  
Capital Gain 61.64% 78% C+ 78% C+
Dividend Return 2.48% 40% F 41% F
Total Return 64.12% 78% C+ 77% C+
Trailing 5 Years  
Capital Gain 85.47% 29% F 77% C+
Dividend Return 12.74% 40% F 46% F
Total Return 98.22% 43% F 78% C+
Average Annual (5 Year Horizon)  
Capital Gain 12.90% 44% F 69% D+
Dividend Return 1.89% 40% F 44% F
Total Return 14.79% 44% F 69% D+
Risk Return Profile  
Volatility (Standard Deviation) 30.99% 56% F 36% F
Risk Adjusted Return 47.74% 56% F 54% F
Market Capitalization 3.20B 27% F 67% D+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-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 22.54 82% B- 34% F
Price/Book Ratio 3.45 82% B- 29% F
Price / Cash Flow Ratio 13.22 82% B- 35% F
EV/EBITDA 14.40 91% A- 42% F
Management Effectiveness  
Return on Equity 16.30% 36% F 66% D
Return on Invested Capital 12.60% 36% F 83% B
Return on Assets 7.20% 30% F 85% B
Debt to Equity Ratio 84.16% 40% F 44% F
Technical Ratios  
Short Ratio 4.72 55% F 25% F
Short Percent 1.46% 90% A- 70% C-
Beta 1.48 20% F 27% 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 Ratings

Target Price Action Rating Action Analyst Rating Price Date

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User / Independent Analyst Ratings

User Name Target Rating Target Horizon (Months) Target Price User Analysis Date Comment

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 earnings

The stock is trading low compared to its peers on a price to earning 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 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.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free 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.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

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.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

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.

Highly 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 Dividend Growth

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