Loading...

We've got a brand new version of Simply Wall St! Try it out

Applied Industrial Technologies

NYSE:AIT
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AIT
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. The last earnings update was 36 days ago. More info.


Add to Portfolio Compare Print
AIT Share Price and Events
7 Day Returns
0%
NYSE:AIT
-1.6%
US Trade Distributors
-1.2%
US Market
1 Year Returns
9.5%
NYSE:AIT
16.7%
US Trade Distributors
15.5%
US Market
AIT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Applied Industrial Technologies (AIT) 0% 4.4% 23.9% 9.5% 4.9% 48.2%
US Trade Distributors -1.6% -1.8% 12.3% 16.7% 20.4% 29.8%
US Market -1.2% 1.4% 4.7% 15.5% 35.4% 48.9%
1 Year Return vs Industry and Market
  • AIT underperformed the Trade Distributors industry which returned 16.7% over the past year.
  • AIT underperformed the Market in United States of America which returned 15.5% over the past year.
Price Volatility
AIT
Industry
5yr Volatility vs Market
Related Companies

AIT Value

 Is Applied Industrial Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Applied Industrial Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Applied Industrial Technologies.

NYSE:AIT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:AIT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.936 (1 + (1- 21%) (42.82%))
1.169
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.169 * 5.44%)
8.1%

Discounted Cash Flow Calculation for NYSE:AIT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Applied Industrial Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:AIT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.1%)
2020 227.63 Analyst x1 210.57
2021 202.43 Analyst x1 173.22
2022 188.20 Est @ -7.03% 148.98
2023 179.92 Est @ -4.4% 131.75
2024 175.32 Est @ -2.56% 118.76
2025 173.10 Est @ -1.27% 108.47
2026 172.47 Est @ -0.37% 99.97
2027 172.92 Est @ 0.27% 92.72
2028 174.15 Est @ 0.71% 86.38
2029 175.92 Est @ 1.02% 80.72
Present value of next 10 years cash flows $1,251.00
NYSE:AIT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $175.92 × (1 + 1.74%) ÷ (8.1% – 1.74%)
$2,813.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,813.31 ÷ (1 + 8.1%)10
$1,290.86
NYSE:AIT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,251.00 + $1,290.86
$2,541.86
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,541.86 / 38.66
$65.76
NYSE:AIT Discount to Share Price
Calculation Result
Value per share (USD) From above. $65.76
Current discount Discount to share price of $65.29
= -1 x ($65.29 - $65.76) / $65.76
0.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Applied Industrial Technologies is available for.
Intrinsic value
1%
Share price is $65.29 vs Future cash flow value of $65.76
Current Discount Checks
For Applied Industrial Technologies to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Applied Industrial Technologies's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Applied Industrial Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Applied Industrial Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Applied Industrial Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AIT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $3.46
NYSE:AIT Share Price ** NYSE (2019-12-06) in USD $65.29
United States of America Trade Distributors Industry PE Ratio Median Figure of 41 Publicly-Listed Trade Distributors Companies 16.95x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.3x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Applied Industrial Technologies.

NYSE:AIT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AIT Share Price ÷ EPS (both in USD)

= 65.29 ÷ 3.46

18.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Applied Industrial Technologies is overvalued based on earnings compared to the US Trade Distributors industry average.
  • Applied Industrial Technologies is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Applied Industrial Technologies's expected growth come at a high price?
Raw Data
NYSE:AIT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
15.5%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 33 Publicly-Listed Trade Distributors Companies 1.03x
United States of America Market PEG Ratio Median Figure of 2,045 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NYSE:AIT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.85x ÷ 15.5%

1.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Applied Industrial Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Applied Industrial Technologies's assets?
Raw Data
NYSE:AIT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $23.99
NYSE:AIT Share Price * NYSE (2019-12-06) in USD $65.29
United States of America Trade Distributors Industry PB Ratio Median Figure of 51 Publicly-Listed Trade Distributors Companies 1.62x
United States of America Market PB Ratio Median Figure of 5,087 Publicly-Listed Companies 1.77x
NYSE:AIT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AIT Share Price ÷ Book Value per Share (both in USD)

= 65.29 ÷ 23.99

2.72x

* Primary Listing of Applied Industrial Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Applied Industrial Technologies is overvalued based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess Applied Industrial Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Applied Industrial Technologies has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AIT Future Performance

 How is Applied Industrial Technologies expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Applied Industrial Technologies expected to grow at an attractive rate?
  • Applied Industrial Technologies's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Applied Industrial Technologies's earnings growth is expected to exceed the United States of America market average.
  • Applied Industrial Technologies's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AIT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AIT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 15.5%
NYSE:AIT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 3.3%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 13.1%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:AIT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AIT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 3,644 223 184 6
2020-06-30 3,514 249 169 7
2019-12-06
NYSE:AIT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 3,465 219 134
2019-06-30 3,473 181 144
2019-03-31 3,488 177 145
2018-12-31 3,430 192 165
2018-09-30 3,257 150 157
2018-06-30 3,073 147 142
2018-03-31 2,857 134 154
2017-12-31 2,709 140 147
2017-09-30 2,650 132 140
2017-06-30 2,594 165 134
2017-03-31 2,546 149 107
2016-12-31 2,500 174 33

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Applied Industrial Technologies's earnings are expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).
  • Applied Industrial Technologies's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:AIT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Applied Industrial Technologies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AIT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 4.72 4.80 4.60 3.00
2020-06-30 4.33 4.35 4.32 3.00
2019-12-06
NYSE:AIT Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 3.46
2019-06-30 3.72
2019-03-31 3.74
2018-12-31 4.25
2018-09-30 4.05
2018-06-30 3.65
2018-03-31 3.97
2017-12-31 3.78
2017-09-30 3.60
2017-06-30 3.43
2017-03-31 2.74
2016-12-31 0.84

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Applied Industrial Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Applied Industrial Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Applied Industrial Technologies has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AIT Past Performance

  How has Applied Industrial Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Applied Industrial Technologies's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Applied Industrial Technologies's year on year earnings growth rate has been positive over the past 5 years.
  • Applied Industrial Technologies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Applied Industrial Technologies's 1-year earnings growth is negative, it can't be compared to the US Trade Distributors industry average.
Earnings and Revenue History
Applied Industrial Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Applied Industrial Technologies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AIT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 3,464.63 133.85 701.64
2019-06-30 3,472.74 143.99 698.67
2019-03-31 3,487.72 144.55 702.66
2018-12-31 3,429.94 164.61 705.26
2018-09-30 3,257.09 156.84 665.09
2018-06-30 3,073.27 141.63 620.25
2018-03-31 2,857.02 154.22 582.88
2017-12-31 2,708.66 147.13 551.18
2017-09-30 2,649.60 140.26 544.27
2017-06-30 2,593.75 133.91 538.73
2017-03-31 2,546.28 107.02 524.87
2016-12-31 2,500.15 32.80 518.17
2016-09-30 2,502.37 32.66 518.17
2016-06-30 2,519.43 29.58 523.05
2016-03-31 2,562.96 31.56 531.56
2015-12-31 2,609.78 104.89 536.52
2015-09-30 2,691.14 110.65 550.62
2015-06-30 2,751.56 115.48 559.40
2015-03-31 2,728.64 117.11 563.51
2014-12-31 2,666.65 118.90 550.97
2014-09-30 2,556.90 115.10 525.61
2014-06-30 2,459.88 112.82 507.10
2014-03-31 2,445.74 115.42 504.69
2013-12-31 2,449.39 114.33 504.57
2013-09-30 2,456.96 115.46 503.37
2013-06-30 2,462.17 118.15 493.33
2013-03-31 2,441.70 117.92 484.92
2012-12-31 2,425.51 118.04 479.59

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Applied Industrial Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Applied Industrial Technologies used its assets more efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • Applied Industrial Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Applied Industrial Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Applied Industrial Technologies has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AIT Health

 How is Applied Industrial Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Applied Industrial Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Applied Industrial Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Applied Industrial Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Applied Industrial Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Applied Industrial Technologies Company Filings, last reported 2 months ago.

NYSE:AIT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 927.23 953.08 98.20
2019-06-30 897.03 957.89 108.22
2019-03-31 882.85 981.70 47.37
2018-12-31 889.92 967.59 79.83
2018-09-30 870.81 972.40 56.41
2018-06-30 814.96 963.71 54.15
2018-03-31 806.03 1,036.51 43.52
2017-12-31 779.26 312.96 85.32
2017-09-30 773.67 290.77 77.77
2017-06-30 745.26 291.58 105.06
2017-03-31 705.87 321.39 67.31
2016-12-31 681.41 327.19 62.86
2016-09-30 680.45 305.02 58.02
2016-06-30 657.92 327.83 59.86
2016-03-31 656.84 371.17 62.93
2015-12-31 707.57 366.99 55.63
2015-09-30 710.12 355.32 63.97
2015-06-30 741.33 321.00 69.47
2015-03-31 736.31 389.68 55.17
2014-12-31 781.67 349.36 33.18
2014-09-30 790.71 324.26 52.03
2014-06-30 800.31 170.71 71.19
2014-03-31 781.07 30.00 69.09
2013-12-31 773.48 15.00 66.58
2013-09-30 774.62 0.00 76.88
2013-06-30 759.62 0.00 73.16
2013-03-31 737.98 0.00 43.08
2012-12-31 722.11 33.00 51.85
  • Applied Industrial Technologies's level of debt (102.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (41% vs 102.8% today).
  • Debt is well covered by operating cash flow (23%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.6x coverage).
X
Financial health checks
We assess Applied Industrial Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Applied Industrial Technologies has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AIT Dividends

 What is Applied Industrial Technologies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.9%
Current annual income from Applied Industrial Technologies dividends. Estimated to be 1.93% next year.
If you bought $2,000 of Applied Industrial Technologies shares you are expected to receive $38 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Applied Industrial Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Applied Industrial Technologies's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:AIT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1958 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:AIT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 1.27 3.00
2020-06-30 1.25 3.00
2019-12-06
NYSE:AIT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-20 1.240 2.158
2019-04-26 1.240 2.179
2019-01-25 1.240 2.101
2019-01-24 1.240 2.175
2018-10-31 1.200 1.998
2018-06-21 1.200 1.615
2018-01-25 1.200 1.682
2017-10-25 1.160 1.787
2017-06-22 1.160 1.957
2017-04-28 1.160 1.883
2017-04-27 1.160 1.775
2017-01-27 1.160 1.882
2017-01-26 1.160 1.828
2016-06-23 1.120 2.211
2016-05-03 1.120 2.490
2016-04-28 1.120 2.449
2016-01-29 1.120 2.714
2016-01-28 1.120 2.935
2015-06-19 1.080 2.705
2015-04-30 1.080 2.532
2014-10-29 1.000 2.267
2014-06-19 1.000 2.072
2014-05-01 1.000 2.087
2014-01-30 1.000 2.036
2013-10-30 0.920 1.928
2013-06-20 0.920 1.825
2013-05-02 0.920 1.953
2013-01-31 0.920 2.110
2012-10-23 0.840 2.057
2012-07-24 0.840 2.064
2012-04-26 0.840 2.287
2012-01-25 0.840 2.091
2011-10-25 0.760 2.198
2011-07-21 0.760 2.605
2011-04-21 0.760 2.188
2011-01-26 0.680 2.087
2010-10-26 0.680 2.153
2010-07-20 0.680 2.330
2010-04-22 0.600 2.202
2010-01-19 0.600 2.521
2009-10-20 0.600 2.771
2009-07-21 0.600 2.849
2009-04-23 0.600 2.931
2009-01-21 0.600 3.507

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Applied Industrial Technologies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.8x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Applied Industrial Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Applied Industrial Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Applied Industrial Technologies has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AIT Management

 What is the CEO of Applied Industrial Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Neil Schrimsher
COMPENSATION $4,493,377
AGE 55
TENURE AS CEO 8.2 years
CEO Bio

Mr. Neil A. Schrimsher has been the Chief Executive Officer of Applied Industrial Technologies, Inc. since October 25, 2011 and its President since August 2013. Mr. Schrimsher's managerial experience includes distribution, channel management, strategic planning & analysis, manufacturing, engineering, supply chain management and sourcing. He served as an Executive Vice President of Cooper Connection at Cooper Industries plc from February 2010 to August 16, 2011 and also served as its Executive Vice President and President of Cooper Wiring Devices. At Cooper Industries, he led multiple businesses in its Electrical Products Group and headed numerous domestic and international growth initiatives. He served as the President of Cooper Lighting, LLC of Cooper Industries plc since 2006. He served as Vice President for Power Distribution and Controls Division of Siemens Energy & Automation, Inc. since October 2003 until 2006. He served as Vice President of the Residential Infrastructure Division of Siemens Energy & Automation, Inc. since March 2001 until 2003. He began his career at General Electric Company in 1984 and rose through a succession of positions in GE Lighting, including National Sales Manager and General Manager of Commercial & Industrial Marketing. He worked at GE Lighting headquarters in Cleveland from 1991 to 1994 and from 1998 to 2001. He also held product management positions at GE. He serves as Director of Applied Australia Holdings Pty Ltd. He has been a Director of Applied Industrial Technologies, Inc. since October 25, 2011 and Patterson Companies, Inc. since March 2014. Mr. Schrimsher holds an MBA from John Carroll University and a BS degree in Business Administration and Marketing from the University of Tennessee.

CEO Compensation
  • Neil's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Neil's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Applied Industrial Technologies management team in years:

5.4
Average Tenure
54
Average Age
  • The average tenure for the Applied Industrial Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Neil Schrimsher

TITLE
President
COMPENSATION
$4M
AGE
55
TENURE
8.2 yrs

Dave Wells

TITLE
VP, CFO & Treasurer
COMPENSATION
$1M
AGE
56
TENURE
2.3 yrs

Fred Bauer

TITLE
VP, General Counsel & Secretary
COMPENSATION
$1M
AGE
53
TENURE
17.7 yrs

Kurt Loring

TITLE
VP & Chief Human Resource Officer
COMPENSATION
$927K
AGE
50
TENURE
5.4 yrs

Bud Hoffner

TITLE
VP and GM of Fluid Power & Flow Control
COMPENSATION
$913K
AGE
59
TENURE
16.5 yrs

Ryan Cieslak

TITLE
Director of Investor Relations & Assistant Treasurer
TENURE
0.8 yrs

Julie Kho

TITLE
Manager of Corporate Communications & Media Relations

Joe Mangiapane

TITLE
Managing Director of Australia & New Zealand

Chris Macey

TITLE
Corporate Controller
AGE
46
TENURE
4.7 yrs

Mike Allen

TITLE
President of Applied Industrial Technologies
Board of Directors Tenure

Average tenure and age of the Applied Industrial Technologies board of directors in years:

5.2
Average Tenure
59
Average Age
  • The tenure for the Applied Industrial Technologies board of directors is about average.
Board of Directors

Pete Wallace

TITLE
Independent Chairman of the Board
COMPENSATION
$280K
AGE
65
TENURE
5.2 yrs

Neil Schrimsher

TITLE
President
COMPENSATION
$4M
AGE
55
TENURE
8.2 yrs

Peter Dorsman

TITLE
Independent Director
COMPENSATION
$219K
AGE
63
TENURE
17.4 yrs

Vince Petrella

TITLE
Independent Director
COMPENSATION
$224K
AGE
59
TENURE
7.4 yrs

Dan Komnenovich

TITLE
Independent Director
COMPENSATION
$206K
AGE
67
TENURE
7.4 yrs

Bob Pagano

TITLE
Independent Director
COMPENSATION
$206K
AGE
56
TENURE
2.3 yrs

Joe Raver

TITLE
Independent Director
COMPENSATION
$206K
AGE
53
TENURE
2.3 yrs

Madhuri Andrews

TITLE
Independent Director
AGE
52
TENURE
0.3 yrs

Mary Hall

TITLE
Independent Director
AGE
61
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. Aug 19 Sell Jerry Thornton Individual 30. Aug 19 30. Aug 19 -16,031 $53.45 $-856,818
X
Management checks
We assess Applied Industrial Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Applied Industrial Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AIT News

Simply Wall St News

This Insider Has Just Sold Shares In Applied Industrial Technologies, Inc. (NYSE:AIT)

Check out our latest analysis for Applied Industrial Technologies The Last 12 Months Of Insider Transactions At Applied Industrial Technologies In fact, the recent sale by Director Jerry Thornton was not their only sale of Applied Industrial Technologies shares this year. … Insiders in Applied Industrial Technologies didn't buy any shares in the last year. … Insiders own 1.3% of Applied Industrial Technologies shares, worth about US$26m.

Simply Wall St -

How Does Investing In Applied Industrial Technologies, Inc. (NYSE:AIT) Impact The Volatility Of Your Portfolio?

Check out our latest analysis for Applied Industrial Technologies What AIT's beta value tells investors Given that it has a beta of 1.30, we can surmise that the Applied Industrial Technologies share price has been fairly sensitive to market volatility (over the last 5 years). … Beta is worth considering, but it's also important to consider whether Applied Industrial Technologies is growing earnings and revenue. … What this means for you: Since Applied Industrial Technologies tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

Is Applied Industrial Technologies, Inc.'s (NYSE:AIT) CEO Salary Justified?

Neil Schrimsher became the CEO of Applied Industrial Technologies, Inc. … Check out our latest analysis for Applied Industrial Technologies How Does Neil Schrimsher's Compensation Compare With Similar Sized Companies? … Important note: Applied Industrial Technologies may not be the best stock to buy.

Simply Wall St -

Applied Industrial Technologies, Inc. (NYSE:AIT)'s Could Be A Buy For Its Upcoming Dividend

With that in mind, we're encouraged by the steady growth at Applied Industrial Technologies, with earnings per share up 5.9% on average over the last five years. … Earnings per share have been growing moderately, and Applied Industrial Technologies is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. … We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and Applied Industrial Technologies is halfway there.

Simply Wall St -

Are You An Income Investor? Don't Miss Out On Applied Industrial Technologies, Inc. (NYSE:AIT)

At the right price, or with strong growth opportunities, Applied Industrial Technologies could have potential. … For the purpose of this article, we only scrutinise the last decade of Applied Industrial Technologies's dividend payments. … See if the 5 Applied Industrial Technologies analysts we track are forecasting continued growth with our free report on analyst estimates for the company.

Simply Wall St -

Why Applied Industrial Technologies, Inc. (NYSE:AIT) Looks Like A Quality Company

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Applied Industrial Technologies: 16% = US$145m ÷ US$883m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Applied Industrial Technologies Have A Good Return On Equity? … Combining Applied Industrial Technologies's Debt And Its 16% Return On Equity It's worth noting the significant use of debt by Applied Industrial Technologies, leading to its debt to equity ratio of 1.11.

Simply Wall St -

Applied Industrial Technologies (NYSE:AIT) Seems To Use Debt Quite Sensibly

View our latest analysis for Applied Industrial Technologies How Much Debt Does Applied Industrial Technologies Carry? … NYSE:AIT Historical Debt, July 17th 2019 How Strong Is Applied Industrial Technologies's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching Applied Industrial Technologies's balance sheet over time.

Simply Wall St -

At US$59.17, Is Applied Industrial Technologies, Inc. (NYSE:AIT) Worth Looking At Closely?

A question to answer is whether Applied Industrial Technologies's current trading price of $59.17 reflective of the actual value of the mid-cap? … It’s trading around 10% below my intrinsic value, which means if you buy Applied Industrial Technologies today, you’d be paying a reasonable price for it. … This is because Applied Industrial Technologies’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market.

Simply Wall St -

Have Insiders Been Selling Applied Industrial Technologies, Inc. (NYSE:AIT) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Applied Industrial Technologies The Last 12 Months Of Insider Transactions At Applied Industrial Technologies In the last twelve months, the biggest single sale by an insider was when the , L. … Insider Ownership of Applied Industrial Technologies Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. … Still, the insider transactions at Applied Industrial Technologies in the last 12 months are not very heartening.

Simply Wall St -

Does Applied Industrial Technologies, Inc. (NYSE:AIT) Have A Good P/E Ratio?

View our latest analysis for Applied Industrial Technologies How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Applied Industrial Technologies: P/E of 15.35 = $57.34 ÷ $3.74 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The Bottom Line On Applied Industrial Technologies's P/E Ratio Applied Industrial Technologies trades on a P/E ratio of 15.3, which is below the US market average of 17.4.

Simply Wall St -

AIT Company Info

Description

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. The company offers its products for maintenance, repair, and operational, as well as original equipment manufacturing customers. It operates in 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, industrial rubber products, linear motion components, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and designs and assembles hydraulic and electro-hydraulic power units and control systems, electronic control systems, pneumatic and electro-pneumatic panels and sub-assemblies, fabricated aluminum assemblies, lubrication systems, hydraulic manifolds, and pump assemblies, as well as provides equipment repair services. It also operates fabricated rubber shops that modify and repair conveyor belts, as well as offer hose assemblies; and rubber service field crews to install and repair conveyor belts and rubber lining at customer locations. In addition, the company rebuilds or assembles speed reducers, pumps, valves, cylinders, and electric and hydraulic motors, as well as custom machining products; and offers technical support services. It offers 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, mining, oil and gas, primary metals, transportation, and utilities, as well as to government entities. Applied Industrial Technologies, Inc. was founded in 1923 and is headquartered in Cleveland, Ohio.

Details
Name: Applied Industrial Technologies, Inc.
AIT
Exchange: NYSE
Founded: 1923
$2,442,262,577
38,655,628
Website: http://www.applied.com
Address: Applied Industrial Technologies, Inc.
1 Applied Plaza,
Cleveland,
Ohio, 44115,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AIT Common Stock New York Stock Exchange US USD 02. Jan 1968
DB AT4 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0HGR Common Stock London Stock Exchange GB USD 02. Jan 1968
Number of employees
Current staff
Staff numbers
6,753
Applied Industrial Technologies employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/06 23:31
End of day share price update: 2019/12/06 00:00
Last estimates confirmation: 2019/12/03
Last earnings filing: 2019/10/31
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.