Is NYSE:AIT suited 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 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.

Looking into the quality metrics of APPLIED INDUSTRIAL TECH INC

• APPLIED INDUSTRIAL TECH INC has shown strong performance in revenue growth over the past 5 years, with a 5.22% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• APPLIED INDUSTRIAL TECH INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 34.05% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a favorable Debt/Free Cash Flow Ratio of 1.72, 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 exhibits impressive Profit Quality (5-year) with a 311.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• APPLIED INDUSTRIAL TECH INC has consistently achieved strong EBIT growth over the past 5 years, with a 13.12% 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.

What is the full fundamental picture of NYSE:AIT telling us.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall AIT gets a fundamental rating of 7 out of 10. We evaluated AIT against 52 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 decent growth rate and is not valued too expensively.

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

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.