AIT Stock Analysis: Applied Industrial | NYSE
Industrial Distribution | NYSE, USA | Market Cap: 12.140m USD | 12M Return: 34.7% | US03820C1053 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 77.8M
EPS Trend: 99.1%
Qual. Beats: 1
Rev. Trend: 89.4%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Applied Industrial Technologies (NYSE: AIT) is a Cleveland, Ohio–based industrial distributor founded in 1923 (originally as Bearings, Inc., renamed in 1997) that supplies motion control, fluid power, flow control, automation technologies, and maintenance products across North America and select Asia-Pacific markets. The company operates through two segments: a Service Center segment offering bearings, power transmission, motors, belts, drives, couplings, pumps, hoses, and related MRO supplies, plus installation and repair of conveyor belts, rubber linings, and hose assemblies; and an Engineered Solutions segment that distributes, designs, integrates, and repairs hydraulic and pneumatic systems, engineered flow control products, and advanced automation technologies such as machine vision, collaborative and mobile robots, RFID, motion control, and machine learning solutions.
Its fluid power and automation products serve a diverse set of end markets, including off-highway mobile equipment, stationary industrial machinery, marine and offshore, factory automation, food processing, packaging, and downstream energy process systems. AIT sits within the Trading Companies & Distributors sub-industry of the Industrials sector, operating a hybrid B2B distribution model that combines traditional MRO branch-based supply with higher-touch engineered solutions and systems integration for OEMs, machine builders, and integrators.
- Service Center revenue tracks U.S. industrial production cycle
- Engineered Solutions margin expansion drives operating leverage
- Acquisitions and share buybacks supplement organic growth
| Net Income: 414.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 0.60 > 1.0 |
| NWC/Revenue: 19.46% < 20% (prev 26.76%; Δ -7.31% < -1%) |
| CFO/TA 0.16 > 3% & CFO 482.5m > Net Income 414.5m |
| Net Debt (356.3m) to EBITDA (618.2m): 0.58 < 3 |
| Current Ratio: 2.58 > 1.5 & < 3 |
| Outstanding Shares: last quarter (37.9m) vs 12m ago -1.70% < -2% |
| Gross Margin: 30.34% > 18% (prev 30.31%; Δ 0.03% > 0.5%) |
| Asset Turnover: 160.6% > 50% (prev 143.7%; Δ 16.89% > 0%) |
| Interest Coverage Ratio: 69.57 > 6 (EBIT TTM 552.2m / Interest Expense TTM 7.94m) |
| A: 0.32 (Total Current Assets 1.58b - Total Current Liabilities 612.4m) / Total Assets 3.01b |
| B: 0.93 (Retained Earnings 2.79b / Total Assets 3.01b) |
| C: 0.18 (EBIT TTM 552.2m / Avg Total Assets 3.09b) |
| D: 1.62 (Book Value of Equity 1.86b / Total Liabilities 1.15b) |
| Altman-Z'' = 8.03 = AAA |
| DSRI: 1.03 (Receivables 859.9m/769.7m, Revenue 4.97b/4.56b) |
| GMI: 1.00 (GM 30.31% / 30.34%) |
| AQI: 1.03 (AQ_t 0.36 / AQ_t-1 0.35) |
| SGI: 1.09 (Revenue 4.97b / 4.56b) |
| TATA: -0.02 (NI 414.5m - CFO 482.5m) / TA 3.01b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of October 20, 2026, the stock is trading at USD 333.82 with a total of 245,685 shares traded. Over the past week, the price has changed by +0.00%, over one month by +4.19%, over three months by -0.49% and over the past year by +34.66%.
Current recommended Stop Loss: 320.90 (which is 3.9% or 1.7 ATR below the current price).
Applied Industrial has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy AIT.
- StrongBuy: 6
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 398.3 | 19.3% |
P/E Trailing = 30.1808
P/E Forward = 27.7778
P/S = 2.4442
P/B = 6.5796
P/EG = 2.7789
Revenue TTM = 4.97b USD
EBIT TTM = 552.2m USD
EBITDA TTM = 618.2m USD
Long Term Debt = 262.3m USD (from longTermDebt, last quarter)
Short Term Debt = 52.9m USD (from shortTermDebt, last quarter)
Debt = 483.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 356.3m USD (calculated: Debt 483.4m - CCE 127.1m)
Enterprise Value = 12.5b USD (12.1b + Debt 483.4m - CCE 127.1m)
Interest Coverage Ratio = 69.57 (Ebit TTM 552.2m / Interest Expense TTM 7.94m)
EV/FCF = 27.23x (Enterprise Value 12.5b / FCF TTM 458.9m)
FCF Yield = 3.67% (FCF TTM 458.9m / Enterprise Value 12.5b)
FCF Margin = 9.24% (FCF TTM 458.9m / Revenue TTM 4.97b)
Net Margin = 8.35% (Net Income TTM 414.5m / Revenue TTM 4.97b)
Gross Margin = 30.34% ((Revenue TTM 4.97b - Cost of Revenue TTM 3.46b) / Revenue TTM)
Gross Margin QoQ = 31.64% (prev 30.43%)
Tobins Q-Ratio = 4.15 (Enterprise Value 12.5b / Total Assets 3.01b)
Interest Expense / Debt = 1.64% (Interest Expense 7.94m / Debt 483.4m)
Taxrate = 23.84% (129.7m / 544.3m)
NOPAT = 420.6m (EBIT 552.2m * (1 - 23.84%))
Current Ratio = 2.58 (Total Current Assets 1.58b / Total Current Liabilities 612.4m)
Debt / Equity = 0.26 (Debt 483.4m / totalStockholderEquity, last quarter 1.86b)
Debt / EBITDA = 0.58 (Net Debt 356.3m / EBITDA 618.2m)
Debt / FCF = 0.78 (Net Debt 356.3m / FCF TTM 458.9m)
Total Stockholder Equity = 1.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.40% (Net Income 414.5m / Total Assets 3.01b)
RoE = 22.17% (Net Income TTM 414.5m / Total Stockholder Equity 1.87b)
RoCE = 25.90% (EBIT 552.2m / Capital Employed (Equity 1.87b + L.T.Debt 262.3m))
RoIC = 18.10% (NOPAT 420.6m / Invested Capital 2.32b)
WACC = 9.42% (E(12.1b)/V(12.6b) * Re(9.75%) + D(483.4m)/V(12.6b) * Rd(1.64%) * (1-Tc(0.24)))
Discount Rate = 9.75% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.63 | Cagr: -1.60%
[DCF] Terminal Value 71.55% ; FCFF base≈461.4m ; Y1≈458.1m ; Y5≈474.4m
[DCF] Fair Price = 160.6 (EV 6.26b - Net Debt 356.3m = Equity 5.90b / Shares 36.7m; r=9.42% [WACC]; 5y FCF grow -1.35% → 2.50% )
EPS Correlation: 99.08 | EPS CAGR: 6.16% | SUE: 3.53 | # QB: 1
Revenue Correlation: 89.38 | Revenue CAGR: 3.74% | SUE: 2.87 | # QB: 2
EPS current Quarter (2026-09-30): EPS=2.89 | Chg30d=+0.09% | Revisions=+50% | Analysts=8
EPS next Quarter (2026-12-31): EPS=2.79 | Chg30d=+1.16% | Revisions=+29% | Analysts=8
EPS current Year (2027-06-30): EPS=12.03 | Chg30d=+0.00% | Revisions=+70% | GrowthEPS=+9.9% | GrowthRev=+5.9%
EPS next Year (2028-06-30): EPS=13.20 | Chg30d=-0.19% | Revisions=+57% | GrowthEPS=+9.7% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: +76% (up=17, down=1)