Is APPLIED INDUSTRIAL TECH INC (NYSE:AIT) a Strong Candidate for Quality Investing?

In this article we will dive into APPLIED INDUSTRIAL TECH INC (NYSE:AIT) as a possible candidate for quality investing. Investors should always do their own research, but we noticed APPLIED INDUSTRIAL TECH INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:AIT may be interesting for quality investors.

• Over the past 5 years, APPLIED INDUSTRIAL TECH INC has experienced impressive revenue growth, with 7.5% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• APPLIED INDUSTRIAL TECH INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 35.12% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• 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.
• With a favorable Profit Quality (5-year) ratio of 316.0%, APPLIED INDUSTRIAL TECH INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• The 5-year EBIT growth of APPLIED INDUSTRIAL TECH INC has been remarkable, with 15.95% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• APPLIED INDUSTRIAL TECH INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NYSE:AIT?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, AIT scores 6 out of 10 in our fundamental rating. AIT was compared to 54 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making AIT a very profitable company, without any liquidiy or solvency issues. AIT has a correct valuation and a medium growth rate.

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.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.