Applied Industrial Technologies Inc

Consumer Discretionary
Industrial Specialties
www.applied.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $10.44B
PE 27
Debt $622.35M
Cash $538.52M
EV $10.52B
FCF $406.86M

Earnings

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Sales & Net Margins

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Earnings	$384.00M
EBIT	$493.53M
ROE	22%
ROA	16%
FCF	$406.86M
Equity	$1.75B
Growth Stability	17%
PE	27.19
PEG	0.39
PB	5.96
P/FCF	25.66
P/S	2.33
Price/Cash	0.05
Debt/Equity	0.36
Debt/FCF	1.53
Net Margins	8%
Gross Margins	30%
Op. Margins	11%
Earnings CAGR	25%
Sales Growth YoY	0%
Sales Growth QoQ	-5%
Sales CAGR	56%
FCF CAGR	10%
Equity CAGR	10%
Earnings Stability	0.46
Earnings Growth YoY	-2%
Earnings Growth QoQ	-11%
Earnings CAGR 5Y	70%

Sales CAGR 5Y	9%
FCF CAGR 5Y	9%
Equity CAGR 5Y	18%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	57%
Equity CAGR 3Y	22%
Market Cap	$10.44B
Revenue	$4.48B
Dividend Yield	1%
Payout Ratio	15%
Assets	$3.00B
Total Debt	$622.35M
Cash	$538.52M
Shares Outstanding	38.36M
EV	10.52B
Earnings Score	68%
Moat Score	93%
Safety Score	65%
Final Score	75%
Working Capital	1.33B
Current Ratio	3.78
Gross Profit	$1.34B
Shares Growth 3y	0%
Equity Growth QoQ	4%
Equity Growth YoY	14%

Assets & ROA

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Stockholders Equity & ROE

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Applied Industrial Technologies Inc is a distributor of industrial products to the maintenance, repair, and operations market and the original equipment manufacturing industry. Further, the company provides engineering and design services for industrial and fluid power applications. The products include bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, safety products, oilfield supplies, and other industrial and maintenance supplies. Fluid products include hydraulic, pneumatic, lubrication, and filtration systems and components. Applied Industrial Technologies operates primarily in North America, Australia, and New Zealand.

SEC Filings

Direct access to Applied Industrial Technologies Inc (AIT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31

Sector Comparison

How does Applied Industrial Technologies Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Applied Industrial Technologies Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 25%

Stability 46%

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Applied Industrial Technologies Inc Discounted Cash Flow

Fully customizable DCF calculator online for Applied Industrial Technologies Inc.

Years

Calculation mode

= $8.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$407M	$449M	$496M	$548M	$605M	$667M	$737M	$814M	$898M	$992M	$1.1B	$11B
DCF		$408M	$410M	$411M	$413M	$414M	$416M	$417M	$419M	$421M	$422M	$4.2B
Value	$8.4B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	479%	138%	5%	5%	4%	1%	4%	7%	8%	9%	8%
ROA	-	7%	13%	10%	10%	4%	9%	15%	17%	17%	16%
ROE	-	4%	18%	17%	16%	3%	16%	22%	24%	23%	22%

Net Margins (8.38%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	2.22	1.98	7.77	6.24	3.67	3.87	4.31	2.04	1.8	1.53
Debt over Equity	0.43	0.5	0.39	1.18	1.12	1.2	0.94	0.63	0.44	0.37	0.36
Growth Stability	-	-	-	100%	100%	17%	100%	100%	100%	100%	17%

Good Debt/FCF ratio (1.53)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.36)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (17%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	-11%	12K%	18%	13%	-7%	-0%	18%	16%	2%	9%
Earnings YoY growth	-	-74%	353%	6%	2%	-83%	502%	78%	35%	11%	70%
Equity YoY growth	-	-11%	13%	9%	10%	-6%	11%	23%	27%	16%	18%
FCF YoY growth	-	6%	-0%	-16%	30%	71%	-18%	-25%	87%	9%	9%