Applied Industrial Technologies, Inc. Fundamental Analysis
Applied Industrial Technologies, Inc. Fundamental Analysis
Applied Industrial Technologies, Inc. (AIT) shows weak financial fundamentals with a PE ratio of 31.78, profit margin of 8.34%, and ROE of 21.64%. The company generates $4.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze AIT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAIT demonstrates superior asset utilization.
Valuation Score
WeakAIT trades at a premium to fair value.
Growth Score
ModerateAIT shows steady but slowing expansion.
Financial Health Score
ExcellentAIT maintains a strong and stable balance sheet.
Profitability Score
ModerateAIT maintains healthy but balanced margins.
Key Financial Metrics
Is AIT Expensive or Cheap?
P/E Ratio
AIT trades at 31.78 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AIT's PEG of 5.18 indicates potential overvaluation.
Price to Book
The market values Applied Industrial Technologies, Inc. at 6.88 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.66 times EBITDA. This signals the market has high growth expectations.
How Well Does AIT Make Money?
Net Profit Margin
For every $100 in sales, Applied Industrial Technologies, Inc. keeps $8.34 as profit after all expenses.
Operating Margin
Core operations generate 11.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.64 in profit for every $100 of shareholder equity.
ROA
Applied Industrial Technologies, Inc. generates $13.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Applied Industrial Technologies, Inc. generates limited operating cash flow of $457.50M, signaling weaker underlying cash strength.
Free Cash Flow
Applied Industrial Technologies, Inc. produces free cash flow of $430.71M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $11.65 in free cash annually.
FCF Yield
AIT converts 3.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How AIT Stacks Against Its Sector Peers
| Metric | AIT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.78 | 30.72 | Neutral |
| ROE | 21.64% | 1100.00% | Weak |
| Net Margin | 8.34% | -20665.00% (disorted) | Weak |
| Debt/Equity | 0.20 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 2.95 | 21.37 | Strong Liquidity |
| ROA | 13.51% | -1299414.00% (disorted) | Strong |
AIT outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Applied Industrial Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure