(AIT) Applied Industrial - Overview
Sector: Industrials | Industry: Industrial Distribution | Exchange: NYSE (USA) | Market Cap: 11.353m USD | Total Return: 38.5% in 12m
Avg Turnover: 64.9M
EPS Trend: 97.4%
Qual. Beats: 0
Rev. Trend: 88.4%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Supp Ema20, Confidence
Applied Industrial Technologies (NYSE: AIT) is a specialized distributor of industrial motion, power, and automation technologies. Headquartered in Cleveland, Ohio, the company operates through two primary segments: Service Center and Engineered Solutions. Its operations span North America, Oceania, and parts of Southeast Asia and Central America, serving diverse end-markets including food processing, energy, and mobile equipment.
The company functions as a value-added distributor within the fragmented industrial supply sector, bridging the gap between component manufacturers and industrial end-users. Unlike generalist distributors, AIT focuses on complex technical systems such as fluid power, robotics, and machine vision. This business model relies on high technical expertise to provide integration and repair services alongside product delivery.
To better understand the companys competitive positioning and valuation metrics, consider reviewing the detailed financial breakdowns available on ValueRay. Founded in 1923, the firm has evolved from a bearings specialist into a provider of advanced automation and industrial networking solutions.
- Industrial automation adoption accelerates demand for high-margin engineered technology solutions
- Manufacturing sector capital expenditure cycles dictate core service center revenue growth
- Strategic acquisitions in specialized fluid power and flow control expand market share
- Labor shortages drive customer investment in collaborative robotics and machine vision
- Fluctuations in industrial production indices impact volume for power transmission components
| Net Income: 403.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 0.55 > 1.0 |
| NWC/Revenue: 21.59% < 20% (prev 27.05%; Δ -5.46% < -1%) |
| CFO/TA 0.16 > 3% & CFO 464.5m > Net Income 403.8m |
| Net Debt (193.7m) to EBITDA (600.5m): 0.32 < 3 |
| Current Ratio: 2.95 > 1.5 & < 3 |
| Outstanding Shares: last quarter (38.0m) vs 12m ago -2.18% < -2% |
| Gross Margin: 30.04% > 18% (prev 0.30%; Δ 2.97k% > 0.5%) |
| Asset Turnover: 158.5% > 50% (prev 144.4%; Δ 14.12% > 0%) |
| Interest Coverage Ratio: 42.94 > 6 (EBITDA TTM 600.5m / Interest Expense TTM 12.8m) |
| A: 0.35 (Total Current Assets 1.58b - Total Current Liabilities 536.6m) / Total Assets 2.99b |
| B: 0.91 (Retained Earnings 2.71b / Total Assets 2.99b) |
| C: 0.18 (EBIT TTM 550.1m / Avg Total Assets 3.05b) |
| D: 2.32 (Book Value of Equity 2.62b / Total Liabilities 1.13b) |
| Altman-Z'' = 8.90 = AAA |
| DSRI: 0.98 (Receivables 792.8m/754.6m, Revenue 4.84b/4.50b) |
| GMI: 1.01 (GM 30.04% / 30.33%) |
| AQI: 1.03 (AQ_t 0.37 / AQ_t-1 0.36) |
| SGI: 1.08 (Revenue 4.84b / 4.50b) |
| TATA: -0.02 (NI 403.8m - CFO 464.5m) / TA 2.99b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of May 23, 2026, the stock is trading at USD 307.10 with a total of 179,956 shares traded.
Over the past week, the price has changed by -0.02%,
over one month by +6.13%,
over three months by +10.35% and
over the past year by +38.53%.
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 | 330 | 7.5% |
P/E Forward = 26.3852
P/S = 2.3462
P/B = 6.1373
P/EG = 2.6399
Revenue TTM = 4.84b USD
EBIT TTM = 550.1m USD
EBITDA TTM = 600.5m USD
Long Term Debt = 347.3m USD (from longTermDebt, last quarter)
Short Term Debt = 18.0m USD (from shortTermDebt, last quarter)
Debt = 365.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 193.7m USD (calculated: Debt 365.3m - CCE 171.6m)
Enterprise Value = 11.55b USD (11.35b + Debt 365.3m - CCE 171.6m)
Interest Coverage Ratio = 42.94 (Ebit TTM 550.1m / Interest Expense TTM 12.8m)
EV/FCF = 26.40x (Enterprise Value 11.55b / FCF TTM 437.3m)
FCF Yield = 3.79% (FCF TTM 437.3m / Enterprise Value 11.55b)
FCF Margin = 9.04% (FCF TTM 437.3m / Revenue TTM 4.84b)
Net Margin = 8.34% (Net Income TTM 403.8m / Revenue TTM 4.84b)
Gross Margin = 30.04% ((Revenue TTM 4.84b - Cost of Revenue TTM 3.39b) / Revenue TTM)
Gross Margin QoQ = 30.43% (prev 28.94%)
Tobins Q-Ratio = 3.86 (Enterprise Value 11.55b / Total Assets 2.99b)
Interest Expense / Debt = 0.67% (Interest Expense 2.45m / Debt 365.3m)
Taxrate = 26.17% (35.4m / 135.1m)
NOPAT = 406.2m (EBIT 550.1m * (1 - 26.17%))
Current Ratio = 2.95 (Total Current Assets 1.58b / Total Current Liabilities 536.6m)
Debt / Equity = 0.20 (Debt 365.3m / totalStockholderEquity, last quarter 1.86b)
Debt / EBITDA = 0.32 (Net Debt 193.7m / EBITDA 600.5m)
Debt / FCF = 0.44 (Net Debt 193.7m / FCF TTM 437.3m)
Total Stockholder Equity = 1.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.23% (Net Income 403.8m / Total Assets 2.99b)
RoE = 21.64% (Net Income TTM 403.8m / Total Stockholder Equity 1.87b)
RoCE = 24.86% (EBIT 550.1m / Capital Employed (Equity 1.87b + L.T.Debt 347.3m))
RoIC = 17.67% (NOPAT 406.2m / Invested Capital 2.30b)
WACC = 10.11% (E(11.35b)/V(11.72b) * Re(10.42%) + D(365.3m)/V(11.72b) * Rd(0.67%) * (1-Tc(0.26)))
Discount Rate = 10.42% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -1.48%
[DCF] Terminal Value 73.01% ; FCFF base≈437.9m ; Y1≈489.7m ; Y5≈649.9m
[DCF] Fair Price = 210.3 (EV 7.97b - Net Debt 193.7m = Equity 7.77b / Shares 37.0m; r=10.11% [WACC]; 5y FCF grow 13.70% → 3.0% )
EPS Correlation: 97.37 | EPS CAGR: 5.94% | SUE: 0.0 | # QB: 0
Revenue Correlation: 88.38 | Revenue CAGR: 2.89% | SUE: 1.27 | # QB: 1
EPS next Quarter (2026-09-30): EPS=2.83 | Chg30d=+1.10% | Revisions=+43% | Analysts=4
EPS current Year (2026-06-30): EPS=10.70 | Chg30d=+0.39% | Revisions=+45% | GrowthEPS=+5.8% | GrowthRev=+7.5%
EPS next Year (2027-06-30): EPS=11.79 | Chg30d=+1.41% | Revisions=+60% | GrowthEPS=+10.2% | GrowthRev=+5.6%
[Analyst] Revisions Ratio: +60%