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.

Highlighting Notable Quality Metrics of NYSE:AIT.

• APPLIED INDUSTRIAL TECH INC has demonstrated significant revenue growth over the past 5 years, with a 5.22% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• The ROIC excluding cash and goodwill of APPLIED INDUSTRIAL TECH INC stands at 33.7%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• APPLIED INDUSTRIAL TECH INC maintains a healthy Debt/Free Cash Flow Ratio of 1.47, 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 robust Profit Quality (5-year) ratio of 311.0%, APPLIED INDUSTRIAL TECH INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• With a robust 5-year EBIT growth of 13.12%, 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.
• 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.

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

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.

We assign a fundamental rating of 7 out of 10 to AIT. 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 valied quite expensively at the moment, while it does show a decent growth rate.

Our latest full fundamental report of AIT contains the most current fundamental analsysis.

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.