Applied Industrial Technologies Inc.
Find Ratings ReportsAPPLIED INDUSTRIAL TECH INC's gross profit margin for the second quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. APPLIED INDUSTRIAL TECH INC is extremely liquid. Currently, the Quick Ratio is 2.41 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 24.08% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
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Net Sales ($mil) | 1077.15 | 1060.28 |
EBITDA ($mil) | 127.9 | 126.26 |
EBIT ($mil) | 114.59 | 112.89 |
Net Income ($mil) | 91.23 | 80.46 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 412.86 | 165.54 |
Total Assets ($mil) | 2782.77 | 2522.9 |
Total Debt ($mil) | 597.01 | 649.24 |
Equity ($mil) | 1608.03 | 1295.88 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 29.44 | 29.1 |
EBITDA Margin | 11.87 | 11.9 |
Operating Margin | 10.64 | 10.65 |
Sales Turnover | 1.6 | 1.65 |
Return on Assets | 13.45 | 12.07 |
Return on Equity | 23.29 | 23.52 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 3.75 | 3.18 |
Debt/Capital | 0.27 | 0.33 |
Interest Expense | 1.92 | 6.19 |
Interest Coverage | 59.78 | 18.25 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 38.71 | 38.6 |
Div / share | 0.35 | 0.34 |
EPS | 2.32 | 2.05 |
Book value / share | 41.55 | 33.57 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 219388.0 | 224007.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 24.06 for the Merchant Wholesalers, Durable Goods subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 4.50 indicates valuation on par with the S&P 500 average of 4.68 and a significant discount versus the subsector average of 6.83. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, APPLIED INDUSTRIAL TECH INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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AIT 19.63 | Peers 24.06 | AIT 17.10 | Peers 17.73 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. AIT is trading at a discount to its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AIT is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AIT 18.67 | Peers 24.12 | AIT 2.10 | Peers 3.31 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. AIT is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. AIT trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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AIT 4.50 | Peers 6.83 | AIT 22.33 | Peers -19.81 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AIT is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AIT is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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AIT 1.62 | Peers 1.87 | AIT 7.14 | Peers -0.87 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AIT is trading at a discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. AIT has a sales growth rate that significantly exceeds its peers. |
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