APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
NYSE:AIT • US03820C1053
280.902 USD
+1.63 (+0.58%)
Last: Feb 19, 2026, 03:50 PM
AIT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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. AIT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- AIT had positive earnings in the past year.
- AIT had a positive operating cash flow in the past year.
- In the past 5 years AIT has always been profitable.
- Each year in the past 5 years AIT had a positive operating cash flow.
1.2 Ratios
- AIT has a better Return On Assets (12.78%) than 96.08% of its industry peers.
- With an excellent Return On Equity value of 21.54%, AIT belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
- The Return On Invested Capital of AIT (15.01%) is better than 88.24% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AIT is significantly above the industry average of 9.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.78% | ||
| ROE | 21.54% | ||
| ROIC | 15.01% |
ROA(3y)12.69%
ROA(5y)10.99%
ROE(3y)22.64%
ROE(5y)21.17%
ROIC(3y)15.73%
ROIC(5y)14.51%
1.3 Margins
- AIT has a Profit Margin of 8.49%. This is in the better half of the industry: AIT outperforms 74.51% of its industry peers.
- AIT's Profit Margin has improved in the last couple of years.
- AIT's Operating Margin of 10.87% is fine compared to the rest of the industry. AIT outperforms 72.55% of its industry peers.
- In the last couple of years the Operating Margin of AIT has grown nicely.
- AIT's Gross Margin of 30.39% is in line compared to the rest of the industry. AIT outperforms 52.94% of its industry peers.
- In the last couple of years the Gross Margin of AIT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.87% | ||
| PM (TTM) | 8.49% | ||
| GM | 30.39% |
OM growth 3Y5.17%
OM growth 5Y9.14%
PM growth 3Y8.43%
PM growth 5Y63.39%
GM growth 3Y1.43%
GM growth 5Y0.88%
2. Health
2.1 Basic Checks
- AIT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for AIT has been reduced compared to 1 year ago.
- Compared to 5 years ago, AIT has less shares outstanding
- Compared to 1 year ago, AIT has an improved debt to assets ratio.
2.2 Solvency
- AIT has an Altman-Z score of 8.56. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.56, AIT belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
- The Debt to FCF ratio of AIT is 1.25, which is an excellent value as it means it would take AIT, only 1.25 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.25, AIT belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
- A Debt/Equity ratio of 0.31 indicates that AIT is not too dependend on debt financing.
- The Debt to Equity ratio of AIT (0.31) is better than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 8.56 |
ROIC/WACC1.57
WACC9.53%
2.3 Liquidity
- AIT has a Current Ratio of 3.68. This indicates that AIT is financially healthy and has no problem in meeting its short term obligations.
- AIT has a better Current ratio (3.68) than 84.31% of its industry peers.
- AIT has a Quick Ratio of 2.56. This indicates that AIT is financially healthy and has no problem in meeting its short term obligations.
- AIT has a better Quick ratio (2.56) than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.68 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.48% over the past year.
- The Earnings Per Share has been growing by 21.58% on average over the past years. This is a very strong growth
- AIT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.14%.
- Measured over the past years, AIT shows a small growth in Revenue. The Revenue has been growing by 7.05% on average per year.
EPS 1Y (TTM)6.48%
EPS 3Y14.97%
EPS 5Y21.58%
EPS Q2Q%5.02%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%8.39%
3.2 Future
- Based on estimates for the next years, AIT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.09% on average per year.
- The Revenue is expected to grow by 5.64% on average over the next years.
EPS Next Y6.49%
EPS Next 2Y7.56%
EPS Next 3Y8.09%
EPS Next 5YN/A
Revenue Next Year7.73%
Revenue Next 2Y6.61%
Revenue Next 3Y5.64%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.73 indicates a quite expensive valuation of AIT.
- Compared to the rest of the industry, the Price/Earnings ratio of AIT is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.27. AIT is around the same levels.
- A Price/Forward Earnings ratio of 23.99 indicates a rather expensive valuation of AIT.
- The rest of the industry has a similar Price/Forward Earnings ratio as AIT.
- When comparing the Price/Forward Earnings ratio of AIT to the average of the S&P500 Index (28.16), we can say AIT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.73 | ||
| Fwd PE | 23.99 |
4.2 Price Multiples
- AIT's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIT indicates a somewhat cheap valuation: AIT is cheaper than 78.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.85 | ||
| EV/EBITDA | 18.13 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- AIT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.12
PEG (5Y)1.24
EPS Next 2Y7.56%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
- AIT has a yearly dividend return of 0.73%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.44, AIT has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.85, AIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
- The dividend of AIT has a limited annual growth rate of 5.71%.
- AIT has paid a dividend for at least 10 years, which is a reliable track record.
- AIT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.71%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
- AIT pays out 17.32% of its income as dividend. This is a sustainable payout ratio.
- AIT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.32%
EPS Next 2Y7.56%
EPS Next 3Y8.09%
NYSE:AIT (2/19/2026, 3:50:01 PM)
280.902
+1.63 (+0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)01-27 2026-01-27/bmo
Earnings (Next)04-29 2026-04-29
Inst Owners95.71%
Inst Owner Change-1.84%
Ins Owners0.84%
Ins Owner Change-7.54%
Market Cap10.48B
Revenue(TTM)4.75B
Net Income(TTM)403.79M
Analysts81.54
Price Target302.36 (7.64%)
Short Float %2.65%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend1.67
Dividend Growth(5Y)5.71%
DP17.32%
Div Incr Years15
Div Non Decr Years34
Ex-Date02-13 2026-02-13 (0.51)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.48%
Min EPS beat(2)0.06%
Max EPS beat(2)4.89%
EPS beat(4)4
Avg EPS beat(4)4.04%
Min EPS beat(4)0.06%
Max EPS beat(4)5.61%
EPS beat(8)8
Avg EPS beat(8)4.16%
EPS beat(12)12
Avg EPS beat(12)6.35%
EPS beat(16)16
Avg EPS beat(16)9.5%
Revenue beat(2)0
Avg Revenue beat(2)-0.78%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)-0.04%
Revenue beat(4)1
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)2.49%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)5
Avg Revenue beat(12)-0.2%
Revenue beat(16)9
Avg Revenue beat(16)1.36%
PT rev (1m)0.01%
PT rev (3m)0.22%
EPS NQ rev (1m)-2.92%
EPS NQ rev (3m)-2.89%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.73 | ||
| Fwd PE | 23.99 | ||
| P/S | 2.2 | ||
| P/FCF | 22.85 | ||
| P/OCF | 21.45 | ||
| P/B | 5.59 | ||
| P/tB | 12.41 | ||
| EV/EBITDA | 18.13 |
EPS(TTM)10.51
EY3.74%
EPS(NY)11.71
Fwd EY4.17%
FCF(TTM)12.29
FCFY4.38%
OCF(TTM)13.1
OCFY4.66%
SpS127.45
BVpS50.25
TBVpS22.63
PEG (NY)4.12
PEG (5Y)1.24
Graham Number109.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.78% | ||
| ROE | 21.54% | ||
| ROCE | 19.25% | ||
| ROIC | 15.01% | ||
| ROICexc | 17.68% | ||
| ROICexgc | 32.28% | ||
| OM | 10.87% | ||
| PM (TTM) | 8.49% | ||
| GM | 30.39% | ||
| FCFM | 9.64% |
ROA(3y)12.69%
ROA(5y)10.99%
ROE(3y)22.64%
ROE(5y)21.17%
ROIC(3y)15.73%
ROIC(5y)14.51%
ROICexc(3y)18.81%
ROICexc(5y)17.03%
ROICexgc(3y)33.89%
ROICexgc(5y)31.67%
ROCE(3y)20.18%
ROCE(5y)18.62%
ROICexgc growth 3Y3.11%
ROICexgc growth 5Y4.82%
ROICexc growth 3Y2.9%
ROICexc growth 5Y8.88%
OM growth 3Y5.17%
OM growth 5Y9.14%
PM growth 3Y8.43%
PM growth 5Y63.39%
GM growth 3Y1.43%
GM growth 5Y0.88%
F-Score8
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.98 | ||
| Cap/Depr | 44.89% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.7% | ||
| Profit Quality | 113.54% | ||
| Current Ratio | 3.68 | ||
| Quick Ratio | 2.56 | ||
| Altman-Z | 8.56 |
F-Score8
WACC9.53%
ROIC/WACC1.57
Cap/Depr(3y)47.45%
Cap/Depr(5y)40.98%
Cap/Sales(3y)0.58%
Cap/Sales(5y)0.54%
Profit Quality(3y)99.93%
Profit Quality(5y)104.31%
High Growth Momentum
Growth
EPS 1Y (TTM)6.48%
EPS 3Y14.97%
EPS 5Y21.58%
EPS Q2Q%5.02%
EPS Next Y6.49%
EPS Next 2Y7.56%
EPS Next 3Y8.09%
EPS Next 5YN/A
Revenue 1Y (TTM)6.14%
Revenue growth 3Y6.19%
Revenue growth 5Y7.05%
Sales Q2Q%8.39%
Revenue Next Year7.73%
Revenue Next 2Y6.61%
Revenue Next 3Y5.64%
Revenue Next 5YN/A
EBIT growth 1Y4.48%
EBIT growth 3Y11.68%
EBIT growth 5Y16.83%
EBIT Next Year21.52%
EBIT Next 3Y11.33%
EBIT Next 5YN/A
FCF growth 1Y14.73%
FCF growth 3Y40.01%
FCF growth 5Y10.96%
OCF growth 1Y15.43%
OCF growth 3Y37.94%
OCF growth 5Y10.66%
APPLIED INDUSTRIAL TECH INC / AIT FAQ
Can you provide the ChartMill fundamental rating for APPLIED INDUSTRIAL TECH INC?
ChartMill assigns a fundamental rating of 7 / 10 to AIT.
Can you provide the valuation status for APPLIED INDUSTRIAL TECH INC?
ChartMill assigns a valuation rating of 3 / 10 to APPLIED INDUSTRIAL TECH INC (AIT). This can be considered as Overvalued.
How profitable is APPLIED INDUSTRIAL TECH INC (AIT) stock?
APPLIED INDUSTRIAL TECH INC (AIT) has a profitability rating of 8 / 10.
Can you provide the financial health for AIT stock?
The financial health rating of APPLIED INDUSTRIAL TECH INC (AIT) is 9 / 10.
How sustainable is the dividend of APPLIED INDUSTRIAL TECH INC (AIT) stock?
The dividend rating of APPLIED INDUSTRIAL TECH INC (AIT) is 5 / 10 and the dividend payout ratio is 17.32%.