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Fundamental analysis: Applied Industrial Technologies, Inc. (AIT)

Awarener score: 7.2

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

• Business has been slightly shrinking. It's been substantially worse when measured against peer companies.
• Applied Industrial Technologies, Inc. business trend stability is good. The higher the stability, the lower the risk. It looks mediocre against rivals.

Margins score: 5.5

• AIT profit margins -on goods and services sold- are usually meagre. They stand somewhat worse than rival companies.
• Business profit on sales tends to be sufficient. It's below average when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain in a weak position compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still somewhat worse than similar companies.
• Profits -before income taxes- are usually sufficient considering total sales, and remain below average when measured against rivals.
• Total net profit tends to be sufficient when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 7.4

• Applied Industrial Technologies, Inc. profit -on goods and services sold- has been growing at a very low pace. It's been in a weak position compared to competitors.
• In recent years, earnings -on operations- have been growing at a good step, which has been slightly better than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares almost average when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be rather normal in relation to similar stocks.
• In past years, profits -before income taxes- grew at a very good speed. It was slightly better than rivals.
• In the previous years, growth trend on total net profit has been excellent, and more than average in relation to peer companies.
• Earnings per share have grown at an excellent rhythm in past years. It's been in good shape compared to industry peers.

Miscellaneous score: 4.0

• AIT had to pay substantial income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.0

• Applied Industrial Technologies, Inc. usually gets excellent returns on the resources it controls. It proves below average when measured against peer firms.
• The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain lacking compared to similar companies.
• There's usually excellent profitability -in relation to owned resources-. It ranks below average when measured against competitors.
• In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 6.9

• AIT usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands below average when measured against rival firms.
• The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is substantially worse when measured against industry peers.
• In the past twelve months it paid low dividends, considering the current stock price. It came somewhat worse than competitors.
• Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved in a weak position compared to similar firms.
• Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks well ranked against comparable companies.
• The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands impressive in relation to rivals.
• The company uses a low portion of genuine fund generation to reward investors, which can most likely be sustained. It still looks similar to competitors.

Balance Sheet score: 5.8

• Applied Industrial Technologies, Inc. intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
• The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be excellent in relation to similar firms.
• Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains somewhat better than rival firms.
• Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks almost average when measured against rivals.
• For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's impressive in relation to peer firms.
• For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is top-notch against similar enterprises.
• Usually, sales are on slightly higher than two months credit. It still ranks weak when measured against peers.
• Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as a slight improvement compared to competitors.
• On average, it takes higher than four months from the purchase to charging customers. It happens to be somewhat better than peers.
• On average pays suppliers after a month and a half from the purchase. It ranks weak when measured against industry peers.
• The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's rather normal in relation to similar companies.
• Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands slightly worse than rival firms.
• Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
• Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks a slight improvement compared to similar firms.
• Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 6.7

• Applied Industrial Technologies, Inc. looks reasonable in relation to profits and financial position. It happens to be more than average in relation to competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a slight improvement compared to peers.
• In the past twelve months, the company generated some good free funds in relation to the stock price, which stands slightly worse than similar companies.
• The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still almost average when measured against industry firms.
• In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
• The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks slightly better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks encouraging in relation to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
• The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
• In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be similar to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still lacking compared to peer companies.

Total score: 6.4

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Awarener score: 7.2

Conclusion

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