APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AIT • US03820C1053
260.41 USD
+0.9 (+0.35%)
At close: Jan 30, 2026
260.41 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, AIT scores 6 out of 10 in our fundamental rating. AIT was compared to 50 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 valied quite expensively at the moment, while 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.
- Each year in the past 5 years AIT has been profitable.
- In the past 5 years AIT always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 12.78%, AIT belongs to the top 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.
- With an excellent Return On Invested Capital value of 15.01%, AIT belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
- 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
- AIT's Profit Margin of 8.49% is fine compared to the rest of the industry. AIT outperforms 74.00% of its industry peers.
- In the last couple of years the Profit Margin of AIT has grown nicely.
- With a decent Operating Margin value of 10.87%, AIT is doing good in the industry, outperforming 72.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of AIT has grown nicely.
- AIT has a Gross Margin (30.39%) which is in line with 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AIT is 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.
- Compared to 1 year ago, AIT has an improved debt to assets ratio.
2.2 Solvency
- AIT has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
- AIT has a better Debt to FCF ratio (1.25) than 86.00% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that AIT is not too dependend on debt financing.
- AIT's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. AIT outperforms 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | N/A |
ROIC/WACC1.56
WACC9.64%
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's Current ratio of 3.68 is amongst the best of the industry. AIT outperforms 84.00% of its industry peers.
- A Quick Ratio of 2.56 indicates that AIT has no problem at all paying its short term obligations.
- AIT has a better Quick ratio (2.56) than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.68 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
- AIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.48%.
- AIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.58% yearly.
- 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
- AIT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.18% yearly.
- The Revenue is expected to grow by 5.47% on average over the next years.
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
- 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.78 indicates a rather 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.
- AIT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- AIT is valuated rather expensively with a Price/Forward Earnings ratio of 22.25.
- AIT's Price/Forward Earnings ratio is in line with the industry average.
- AIT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.78 | ||
| Fwd PE | 22.25 |
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 | 21.43 | ||
| EV/EBITDA | 17.06 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of AIT may justify a higher PE ratio.
PEG (NY)3.81
PEG (5Y)1.15
EPS Next 2Y7.54%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
- AIT has a yearly dividend return of 0.79%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.31, AIT has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
- The dividend of AIT has a limited annual growth rate of 5.71%.
- AIT has been paying a dividend for at least 10 years, so it has a reliable track record.
- AIT has not decreased their dividend for at least 10 years, which is a reliable track record.
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 5 / 10 and the dividend payout ratio is 17.32%.