AIT Stock Analysis: Applied Industrial | NYSE
Industrial Distribution | NYSE, USA | Market Cap: 11.894m USD | 12M Return: 23.3% | US03820C1053 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 82.9M
EPS Trend: 99.1%
Qual. Beats: 1
Rev. Trend: 89.4%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 11.6 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 operating in the U.S., Canada, Mexico, Australia, New Zealand, Singapore, and Costa Rica. The company runs through two segments: Service Center, which supplies bearings, power transmission, fluid power, and general maintenance products along with conveyor and hose services, and Engineered Solutions, which designs, integrates, and repairs hydraulic, pneumatic, flow control, and advanced automation technologies. Originally founded in 1923 as Bearings, Inc., the company adopted its current name in 1997 and has been publicly traded since 1984.
As a member of the Industrials sector within the Trading Companies & Distributors sub-industry, AIT operates a hybrid distribution model, serving both MRO (maintenance, repair, and operations) customers through its Service Center network and OEMs/machine builders through its Engineered Solutions segment. This dual-channel approach is characteristic of large-scale industrial distributors that combine catalog-based MRO supply with higher-value technical and engineering services.
- US manufacturing PMI drives Service Center segment revenue and pricing
- Engineered Solutions margin lifts on fluid power and automation mix shift
- Bolt-on acquisitions and dividend growth sustain capital return story
| 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 September 20, 2026, the stock is trading at USD 321.84 with a total of 974,108 shares traded. Over the past week, the price has changed by -0.60%, over one month by -9.17%, over three months by -4.63% and over the past year by +23.30%.
Current recommended Stop Loss: 308.90 (which is 4% or 1.6 ATR below the current price).
Applied Industrial has received a consensus analysts rating of 4.63. Therefore, it is recommended to buy AIT.
- StrongBuy: 6
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 400 | 24.3% |
P/E Trailing = 29.596
P/E Forward = 26.9542
P/S = 2.3947
P/B = 6.3885
P/EG = 2.6982
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 = 12.3b USD (11.9b + Debt 483.4m - CCE 127.1m)
Interest Coverage Ratio = 69.57 (Ebit TTM 552.2m / Interest Expense TTM 7.94m)
EV/FCF = 26.69x (Enterprise Value 12.3b / FCF TTM 458.9m)
FCF Yield = 3.75% (FCF TTM 458.9m / Enterprise Value 12.3b)
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 = 4.07 (Enterprise Value 12.3b / 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 = 9.98% (E(11.9b)/V(12.4b) * Re(10.33%) + D(483.4m)/V(12.4b) * Rd(1.64%) * (1-Tc(0.24)))
Discount Rate = 10.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.63 | Cagr: -1.60%
[DCF] Terminal Value 69.74% ; FCFF base≈461.4m ; Y1≈458.1m ; Y5≈474.4m
[DCF] Fair Price = 148.1 (EV 5.80b - Net Debt 356.3m = Equity 5.44b / Shares 36.7m; r=9.98% [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=2.88 | Chg30d=+1.54% | 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=+1.78% | Revisions=+70% | GrowthEPS=+9.9% | GrowthRev=+5.9%
EPS next Year (2028-06-30): EPS=13.23 | Chg30d=+3.55% | Revisions=+57% | GrowthEPS=+9.9% | GrowthRev=+5.8%
[Analyst] Revisions Ratio: +76% (up=17, down=1)