Applied Industrial Technologies Inc
AIT
Wholesale-Machinery, Equipment & Supplies
Mkt Cap
$7.584BPE
20.25Debt
$622.2MCash
$456.5MEV
$7.749BFCF
$409.1MP/E Ratio
20.25Debt
$622.2MCash
$456.5MEV
$7.749BFCF
$409.1MCharts data: {"Earnings":[{"time":"2014-06-29","value":112821000},{"time":"2015-06-29","value":115484000},{"time":"2016-06-29","value":29577000},{"time":"2017-06-29","value":133910000},{"time":"2018-06-29","value":141625000},{"time":"2019-06-29","value":143993000},{"time":"2020-06-29","value":24042000},{"time":"2021-06-29","value":144757000},{"time":"2022-06-29","value":257414000},{"time":"2023-06-29","value":346739000}],"Sales":[{"time":"2014-06-29","value":21809000},{"time":"2015-06-29","value":24087000},{"time":"2016-06-29","value":21485000},{"time":"2017-06-29","value":2593746000},{"time":"2018-06-29","value":3073274000},{"time":"2019-06-29","value":3472739000},{"time":"2020-06-29","value":3245652000},{"time":"2021-06-29","value":3235919000},{"time":"2022-06-29","value":3810676000},{"time":"2023-06-29","value":4412794000}],"Net Margins":[{"time":"2014-06-29","value":5.17313952955202},{"time":"2015-06-29","value":4.79445343961473},{"time":"2016-06-29","value":1.3766348615313009},{"time":"2017-06-29","value":0.051628031426361715},{"time":"2018-06-29","value":0.04608277686922806},{"time":"2019-06-29","value":0.04146381285780475},{"time":"2020-06-29","value":0.007407448488007957},{"time":"2021-06-29","value":0.04473443247497851},{"time":"2022-06-29","value":0.0675507442773933},{"time":"2023-06-29","value":0.07857584106577374}],"Assets":[{"time":"2014-06-29","value":1334169000},{"time":"2015-06-29","value":1434968000},{"time":"2016-06-29","value":1312529000},{"time":"2017-06-29","value":1387595000},{"time":"2018-06-29","value":2285741000},{"time":"2019-06-29","value":2331697000},{"time":"2020-06-29","value":2283551000},{"time":"2021-06-29","value":2271807000},{"time":"2022-06-29","value":2452588000},{"time":"2023-06-29","value":2743332000}],"Stockholders Equity":[{"time":"2014-06-29","value":800308000},{"time":"2015-06-29","value":741328000},{"time":"2016-06-29","value":657916000},{"time":"2017-06-29","value":745256000},{"time":"2018-06-29","value":814963000},{"time":"2019-06-29","value":897034000},{"time":"2020-06-29","value":843542000},{"time":"2021-06-29","value":932546000},{"time":"2022-06-29","value":1149355000},{"time":"2023-06-29","value":1458437000}],"ROE":[{"time":"2014-06-29","value":0.1409719757893211},{"time":"2015-06-29","value":0.15577989769710573},{"time":"2016-06-29","value":0.044955587035427014},{"time":"2017-06-29","value":0.1796832229462091},{"time":"2018-06-29","value":0.17378089557440032},{"time":"2019-06-29","value":0.1605212288497426},{"time":"2020-06-29","value":0.028501248307730973},{"time":"2021-06-29","value":0.15522773139341114},{"time":"2022-06-29","value":0.22396387539098017},{"time":"2023-06-29","value":0.2377469853000164}],"ROA":[{"time":"2014-06-29","value":0.12529297262940453},{"time":"2015-06-29","value":0.12865722441197294},{"time":"2016-06-29","value":0.06765640987741985},{"time":"2017-06-29","value":0.12669186614249836},{"time":"2018-06-29","value":0.10012507978812997},{"time":"2019-06-29","value":0.1009003313895416},{"time":"2020-06-29","value":0.040507087426556274},{"time":"2021-06-29","value":0.09149940994107333},{"time":"2022-06-29","value":0.14591036081070283},{"time":"2023-06-29","value":0.172473109342945}]}
Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions 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, automation solutions, 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, filtration supplies, 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 government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.
DCF
Discounted Cash Flow Valuation of Applied Industrial Technologies Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $409.1M | $444.4M | $481M | $518.7M | $557.3M | $596.4M | $635.9M | $675.4M | $714.6M | $753.2M | $790.9M | $7.909B |
| DCF | $386.5M | $363.7M | $341.1M | $318.6M | $296.5M | $274.9M | $253.9M | $233.6M | $214.1M | $195.5M | $1.955B | |
| Value | $4.833B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 21%
Earnings Stability 36%
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 480% | 140% | 5.2% | 4.6% | 4.1% | 0.74% | 4.5% | 6.8% | 7.9% | 8.4% |
| ROA | 13% | 6.8% | 13% | 10% | 10% | 4.1% | 9.1% | 15% | 17% | 17% |
| ROE | 16% | 4.5% | 18% | 17% | 16% | 2.9% | 16% | 22% | 24% | 22% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +4.76%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.79%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +10.86%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.57%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +16.33%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +1.82%.
Safety & Stabiliy
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 2.30 | 2.22 | 1.98 | 7.77 | 6.24 | 3.67 | 3.87 | 4.31 | 2.04 | 1.52 |
| Debt Equity | 0.43 | 0.50 | 0.39 | 1.18 | 1.12 | 1.20 | 0.94 | 0.63 | 0.44 | 0.37 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 17% | 100% | 100% | 100% | 17% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.52.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.98.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.17.
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 | 06-2016 | 06-2018 | 06-2020 | 06-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 110% | 7.5% | 11% | 16% | -400% |
| Net Income | 42% | 20% | 140% | 35% | 13% |
| Stockholders Equity | 12% | 12% | 20% | 27% | 3.7% |
| FCF | 12% | 21% | 4.7% | 87% | 1.4% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +7.5%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -397.72%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +19.61%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +13.26%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +12.34%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +3.66%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +20.67%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +1.44%.