Should you consider NYSE:AIT 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.

Looking into the quality metrics of APPLIED INDUSTRIAL TECH INC

• The 5-year revenue growth of APPLIED INDUSTRIAL TECH INC has been remarkable, with 7.5% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a robust ROIC excluding cash and goodwill at 33.46%, APPLIED INDUSTRIAL TECH INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• APPLIED INDUSTRIAL TECH INC maintains a healthy Debt/Free Cash Flow Ratio of 1.46, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• 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.
• 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.
• The EBIT 5-year growth of APPLIED INDUSTRIAL TECH INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

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

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall AIT gets a fundamental rating of 6 out of 10. We evaluated AIT against 51 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. While showing a medium growth rate, AIT is valued expensive at the moment.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.