Applied Industrial Technologies, Inc. (AIT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fastenal Co.

Applied Industrial Technologies, Inc.

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Beacon Roofing Supply, Inc.

Why is Applied Industrial Technologies, Inc. ?

High Management Efficiency with a high ROCE of 23.14%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 39.19

Healthy long term growth as Operating profit has grown by an annual rate 19.10%

Flat results in Jun 25

ROCE(HY) Lowest at 22.24%
DEBTORS TURNOVER RATIO(HY) Lowest at 6.01 times
INTEREST(Q) Highest at USD 5.01 MM

With ROCE of 26.37%, it has a fair valuation with a 6.21 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.83%, its profits have risen by 8.9% ; the PEG ratio of the company is 3.1

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.83% returns

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Applied Industrial Technologies, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Applied Industrial Technologies, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Applied Industrial Technologies, Inc.

38.53%

1.20

33.57%

S&P 500

22.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.25%

EBIT Growth (5y)

22.03%

EBIT to Interest (avg)

39.19

Debt to EBITDA (avg)

0.94

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.94

Tax Ratio

23.32%

Dividend Payout Ratio

17.28%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

23.14%

ROE (avg)

22.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.38

EV to EBIT

23.71

EV to EBITDA

21.30

EV to Capital Employed

6.86

EV to Sales

2.94

PEG Ratio

1.70

Dividend Yield

ROCE (Latest)

28.92%

ROE (Latest)

24.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 466.14 MM

DIVIDEND PER SHARE(HY)

Highest at USD 6.14

INTEREST COVERAGE RATIO(Q)

Highest at 4,535.81

RAW MATERIAL COST(Y)

Fallen by -0.43% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.69 times

NET SALES(Q)

Highest at USD 1,251.45 MM

-7What is not working for the Company

ROCE(HY)

Lowest at 21.9%

OPERATING PROFIT MARGIN(Q)

Lowest at 12.45 %

OPERATING PROFIT(Q)

Lowest at USD 155.81 MM

PRE-TAX PROFIT(Q)

Lowest at USD 137.39 MM

NET PROFIT(Q)

Lowest at USD 101.44 MM

Here's what is working for Applied Industrial Technologies, Inc.

Operating Cash Flow

Highest at USD 466.14 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 4,535.81

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 6.14 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 1,251.45 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Inventory Turnover Ratio

Highest at 6.69 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.43% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Applied Industrial Technologies, Inc.

Operating Profit Margin

Lowest at 12.45 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at USD 155.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 137.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 101.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)