APPLIED INDUSTRIAL TECH INC (AIT) Stock Fundamental Analysis
NYSE:AIT • US03820C1053
278.74 USD
-3.23 (-1.15%)
At close: Feb 23, 2026
278.74 USD
0 (0%)
After Hours: 2/23/2026, 8:04:00 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
- In the past year AIT was profitable.
- In the past year AIT had a positive cash flow from operations.
- In the past 5 years AIT has always been profitable.
- AIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AIT has a Return On Assets of 12.78%. This is amongst the best in the industry. AIT outperforms 96.00% of its industry peers.
- Looking at the Return On Equity, with a value of 21.54%, AIT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 15.01%, AIT belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AIT is significantly above the industry average of 9.43%.
| 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
- The Profit Margin of AIT (8.49%) is better than 74.00% of its industry peers.
- 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 has a Gross Margin of 30.39%. This is comparable to the rest of the industry: AIT outperforms 52.00% of its industry peers.
- AIT's Gross Margin has been stable in the last couple of years.
| 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.
- AIT has a better debt/assets ratio than last year.
2.2 Solvency
- AIT has an Altman-Z score of 8.60. This indicates that AIT is financially healthy and has little risk of bankruptcy at the moment.
- AIT has a better Altman-Z score (8.60) than 94.00% of its industry peers.
- 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.
- The Debt to FCF ratio of AIT (1.25) is better than 88.00% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that AIT is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.31, AIT is doing good in the industry, outperforming 66.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 8.6 |
ROIC/WACC1.58
WACC9.52%
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 86.00% 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 Quick ratio of 2.56. This is amongst the best in the industry. AIT outperforms 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%.
- The Earnings Per Share has been growing by 21.58% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 6.14% in the past 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
- 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.
- Based on estimates for the next years, AIT will show a small growth in Revenue. The Revenue will grow by 5.83% on average per year.
EPS Next Y6.49%
EPS Next 2Y7.56%
EPS Next 3Y8.09%
EPS Next 5YN/A
Revenue Next Year7.82%
Revenue Next 2Y6.56%
Revenue Next 3Y5.83%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 26.52, AIT can be considered very expensive at the moment.
- AIT's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of AIT to the average of the S&P500 Index (26.64), we can say AIT is valued inline with the index average.
- A Price/Forward Earnings ratio of 23.81 indicates a rather expensive valuation of AIT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AIT is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 27.75. AIT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 23.81 |
4.2 Price Multiples
- AIT's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, AIT is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.68 | ||
| EV/EBITDA | 18.31 |
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.
- The excellent profitability rating of AIT may justify a higher PE ratio.
PEG (NY)4.09
PEG (5Y)1.23
EPS Next 2Y7.56%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.73%, AIT is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.10, AIT pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.73, AIT pays less dividend than the S&P500 average, which is at 1.80.
| 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 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.
- 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%
278.74
-3.23 (-1.15%)
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 Change0.8%
Ins Owners0.84%
Ins Owner Change-2.95%
Market Cap10.40B
Revenue(TTM)4.75B
Net Income(TTM)403.79M
Analysts81.54
Price Target302.36 (8.47%)
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)0.01%
EPS NQ rev (1m)-3.01%
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)0.29%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 23.81 | ||
| P/S | 2.19 | ||
| P/FCF | 22.68 | ||
| P/OCF | 21.28 | ||
| P/B | 5.55 | ||
| P/tB | 12.32 | ||
| EV/EBITDA | 18.31 |
EPS(TTM)10.51
EY3.77%
EPS(NY)11.71
Fwd EY4.2%
FCF(TTM)12.29
FCFY4.41%
OCF(TTM)13.1
OCFY4.7%
SpS127.45
BVpS50.25
TBVpS22.63
PEG (NY)4.09
PEG (5Y)1.23
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 | 8.6 |
F-Score8
WACC9.52%
ROIC/WACC1.58
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 Year7.82%
Revenue Next 2Y6.56%
Revenue Next 3Y5.83%
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 6 / 10 and the dividend payout ratio is 17.32%.