APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AIT • US03820C1053
267.97 USD
+7.56 (+2.9%)
Last: Feb 2, 2026, 01:40 PM
We assign a fundamental rating of 7 out of 10 to AIT. AIT was compared to 50 industry peers in the Trading Companies & Distributors industry. AIT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, AIT is valued expensive at the moment.
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.
- In the past 5 years AIT always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 12.78%, AIT belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
- AIT's Return On Equity of 21.54% is fine compared to the rest of the industry. AIT outperforms 80.00% of its industry peers.
- AIT has a Return On Invested Capital of 15.01%. This is amongst the best in the industry. AIT outperforms 88.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AIT is significantly above the industry average of 9.64%.
| 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
- Looking at the Profit Margin, with a value of 8.49%, AIT is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
- AIT's Profit Margin has improved in the last couple of years.
- The Operating Margin of AIT (10.87%) is better than 72.00% of its industry peers.
- AIT's Operating Margin has improved in the last couple of years.
- AIT's Gross Margin of 30.39% is in line compared to the rest of the industry. AIT outperforms 54.00% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AIT is still creating some value.
- The number of shares outstanding for AIT has been reduced compared to 1 year ago.
- The number of shares outstanding for AIT has been reduced compared to 5 years ago.
- The debt/assets ratio for AIT has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.28 indicates that AIT is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.28, AIT belongs to the best of the industry, outperforming 88.00% 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 86.00% of the companies in the same industry.
- AIT has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of AIT (0.31) is better than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 8.28 |
ROIC/WACC1.53
WACC9.78%
2.3 Liquidity
- A Current Ratio of 3.68 indicates that AIT has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 3.68, AIT belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
- 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.
- With an excellent Quick ratio value of 2.56, AIT belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
| 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.
- AIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.58% yearly.
- Looking at the last year, AIT shows a small growth in Revenue. The Revenue has grown by 6.14% in the last year.
- AIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.05% yearly.
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
- The Earnings Per Share is expected to grow by 8.18% on average over the next years. This is quite good.
- Based on estimates for the next years, AIT will show a small growth in Revenue. The Revenue will grow by 5.47% on average per year.
EPS Next Y6.51%
EPS Next 2Y7.54%
EPS Next 3Y8.18%
EPS Next 5YN/A
Revenue Next Year7.51%
Revenue Next 2Y6.4%
Revenue Next 3Y5.47%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AIT is valuated quite expensively with a Price/Earnings ratio of 25.50.
- The rest of the industry has a similar Price/Earnings ratio as AIT.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, AIT is valued at the same level.
- AIT is valuated rather expensively with a Price/Forward Earnings ratio of 22.90.
- AIT's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. AIT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.5 | ||
| Fwd PE | 22.9 |
4.2 Price Multiples
- AIT's Enterprise Value to EBITDA ratio is in line with 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 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.05 | ||
| EV/EBITDA | 17.12 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AIT does not grow enough to justify the current Price/Earnings ratio.
- AIT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.92
PEG (5Y)1.18
EPS Next 2Y7.54%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
- AIT has a yearly dividend return of 0.78%, which is pretty low.
- AIT's Dividend Yield is a higher than the industry average which is at 0.88.
- With a Dividend Yield of 0.78, AIT pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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
- 17.32% of the earnings are spent on dividend by AIT. This is a low number and sustainable payout ratio.
- The dividend of AIT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.32%
EPS Next 2Y7.54%
EPS Next 3Y8.18%
APPLIED INDUSTRIAL TECH INC / AIT FAQ
Can you provide the ChartMill fundamental rating for APPLIED INDUSTRIAL TECH INC?
ChartMill assigns a fundamental rating of 6 / 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 8 / 10.
How sustainable is the dividend of APPLIED INDUSTRIAL TECH INC (AIT) stock?
The dividend rating of APPLIED INDUSTRIAL TECH INC (AIT) is 6 / 10 and the dividend payout ratio is 17.32%.