APPLIED INDUSTRIAL TECH INC (NYSE:AIT) can be considered a quality stock. Here's why.

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 course 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.

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.
• With a notable ROIC excluding cash and goodwill at 34.36%, APPLIED INDUSTRIAL TECH INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a favorable Debt/Free Cash Flow Ratio of 1.73, APPLIED INDUSTRIAL TECH INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• APPLIED INDUSTRIAL TECH INC demonstrates consistent Profit Quality over the past 5 years, with a strong 316.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• APPLIED INDUSTRIAL TECH INC has consistently achieved strong EBIT growth over the past 5 years, with a 15.95% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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.

Fundamental analysis of NYSE:AIT

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, AIT scores 6 out of 10 in our fundamental rating. AIT was compared to 52 industry peers in the Trading Companies & Distributors industry. AIT gets an excellent profitability rating and is at the same time showing great financial health properties. AIT has a correct valuation and a medium growth rate.

Check the latest full fundamental report of AIT for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.