Why Quality-Oriented Investors Should Consider NYSE:AIT.

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.

Key Considerations for Quality Investors.

• Over the past 5 years, APPLIED INDUSTRIAL TECH INC has experienced impressive revenue growth, with 5.22% 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 exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 33.7% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of APPLIED INDUSTRIAL TECH INC stands at 1.47, 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.
• 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.
• APPLIED INDUSTRIAL TECH INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

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.

Taking everything into account, AIT scores 6 out of 10 in our fundamental rating. AIT was compared to 48 industry peers in the Trading Companies & Distributors industry. AIT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.