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AIT

NYSE
Neutral · 50/100

Applied Industrial Technologies Inc

Industrials
Trading Companies & Distributors

$328.65

0.7%

Updated Today 12:11 PM ET

Report Card

AIT at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Neutral · 50/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 34.1% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$12.23B

P/E

30.24x

Forward P/E (est.)

28.47x

ROE

21.6%

Revenue Growth

7.5%

EPS Growth

6.2%

Profit Margin

8.3%

FCF Yield

3.2%

Debt / Equity

0.31x

ROIC

18.0%

Interest Coverage

27.37x

Current Ratio

2.95x

Dividend Yield

0.6%

Implied Growth (rev. DCF)

5.0%

Rating Score

50/100

Business Overview
Research

Applied Industrial Technologies Inc (AIT) is a large-cap company in the Trading Companies & Distributors industry, part of the Industrials sector of the S&P 500, with a market value around $12.23B.

In its latest reported year it generated about $4.56B in revenue and $392.99M in net profit.

Our model rates AIT Neutral (50/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AIT's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AIT trades near $328.65, above its 50-day average ($315.12) and 200-day average ($278.02). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 57 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. AIT's is $8.22 (~2.5% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month AIT found buyers near $311.79 (support) and sellers near $345.48 (resistance); its 52-week range is $238.34–$345.48. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

9.0%

3/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $2.59B in 2017 to $4.56B in 2025, a 7.3% compound annual growth rate. The most recent year grew a steady 7.5% year over year. Slower, mature growth is common for established businesses.

Profitability
Research
3/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

30.3%

Operating Margin

10.9%

Net Margin

8.6%

ROE

21.6%

Applied Industrial Technologies Inc keeps about 8.3% of each sales dollar as net profit, with a 30.3% gross margin and 10.9% operating margin. Return on equity is 21.6% and return on invested capital about 18.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
4/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$365.30M

Net Debt

-$53.42M

Net cash position

Net Debt / EBITDA

-0.11x

Debt / Equity

0.31x

Leverage: debt-to-equity is 0.3x, and operating profit covers interest about 27.4x, with a current ratio of 3.0x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $365.30M of total debt against $418.72M of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$492.38M

Free Cash Flow

$465.20M

FCF Margin

10.2%

In the latest year Applied Industrial Technologies Inc produced about $492.38M of operating cash flow and $465.20M of free cash flow after capital spending. That is a free-cash-flow yield of about 3.2% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

30.24x

P/S

2.68x

P/B

4.8x

EV / EBITDA

AIT trades at 30.2x trailing earnings (about 28.5x on estimated forward earnings), 2.7x sales, and 4.8x book value. Reverse-engineering today's price implies the market expects roughly 5.0% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$263.75

Current price

$328.65

-20% · Above fair-value estimate

Starting FCF (latest 10-K)

$465.20M

Growth, years 1–5

7.5%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$4.19B
PV of terminal value$5.56B
Estimated equity value$9.75B
Shares outstanding37M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where AIT sits versus its Industrials sector peers in the S&P 500.

TTM P/E
30.2xFair
Forward P/E
28.5xFair
P/S ratio
2.7xFair
Revenue growth
7.5%Average
EPS growth
6.2%Average
Gross margin
30.3%Average
Net margin
8.3%Average
ROE
21.6%Average

Bands show the middle half (25th–75th percentile) of the 87 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How AIT stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.

In the Industrials sector (165 S&P 500 companies), AIT ranks #41 of 165 by our overall rating. It trades at roughly in line versus the sector on earnings (30.2x P/E vs. 32x median) with a higher return on equity (21.6% vs. 19.7%) and faster revenue growth (7.5% vs. 5.2%).

P/E vs sector

30.2x

median 32x

ROE vs sector

21.6%

median 19.7%

Growth vs sector

7.5%

median 5.2%

Sector rank

#41

of 165 by rating

CompanyP/ERev Gr.Rating
AITThis stock30.2x7.5%Neutral· 50
AER5.9x4.9%Favorable· 67
FERG18.1x4.7%Favorable· 63
FAST42.9x10.9%Favorable· 61
DSGRNot rated
DXPENot rated
EQPTNot rated
MGRCNot rated
Industrials median32x5.2%21/100

Valuation vs. quality map

sector medianAERFERGFASTAITP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 165 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $328.65 today · expected CAGR -2%8%

Metric20262027202820292030
Revenue$4.93B$5.32B$5.75B$6.21B$6.71B
Net income$443.56M$479.05M$517.37M$558.76M$603.47M
EPS$12.00$12.96$14.00$15.12$16.33
Share price (low)$216.02$233.31$251.97$272.13$293.90
Share price (high)$360.04$388.84$419.95$453.55$489.83
CAGR (low–high)-34% / 10%-16% / 9%-8% / 9%-5% / 8%-2% / 8%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for AIT:

  • Strong return on equity (21.6%) shows capital is put to work well.
  • A conservative balance sheet (debt/equity 0.3x) lowers risk.
Bear Case

The case against AIT:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Valuation risk — at 30.2x earnings, disappointing results could compress the multiple.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Applied Industrial Technologies Inc is a large-cap industrials business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 30.2x earnings, which our model scores Neutral (50/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

AIT — frequently asked questions

Is AIT a good stock to buy?

We don't give buy or sell advice. Our model rates Applied Industrial Technologies Inc Neutral (50/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is AIT's rating on The Stocks School?

Applied Industrial Technologies Inc currently scores 50/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does AIT's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Applied Industrial Technologies Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for AIT calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this AIT analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AIT. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.