Should you consider APPLIED INDUSTRIAL TECH INC (NYSE:AIT) for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if APPLIED INDUSTRIAL TECH INC (NYSE:AIT) is suited for quality investing. Investors should of couse do their own research, but we spotted APPLIED INDUSTRIAL TECH INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of APPLIED INDUSTRIAL TECH INC

• APPLIED INDUSTRIAL TECH INC has demonstrated significant revenue growth over the past 5 years, with a 7.5% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• The ROIC excluding cash and goodwill of APPLIED INDUSTRIAL TECH INC stands at 35.12%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• The Debt/Free Cash Flow Ratio of APPLIED INDUSTRIAL TECH INC stands at 1.96, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• The Profit Quality (5-year) of APPLIED INDUSTRIAL TECH INC stands at 316.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• With a robust 5-year EBIT growth of 15.95%, APPLIED INDUSTRIAL TECH INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, APPLIED INDUSTRIAL TECH INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall AIT gets a fundamental rating of 6 out of 10. We evaluated AIT against 52 industry peers in the Trading Companies & Distributors industry. AIT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AIT is valued expensive and it does not seem to be growing.

For an up to date full fundamental analysis you can check the fundamental report of AIT

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.