ANGI

Angi

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Communication Services

industry

Internet Content & Information

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/05/26

Business Summary

Applied Industrial Technologies operates as a specialized industrial distributor, supplying maintenance, repair, and operations products that are mission-critical to manufacturers and industrial operators. The business generates cash through high-volume, repeat purchases embedded in customers’ supply chains, creating switching costs through logistics integration and service reliability. Its moat is operational rather than technological—scale purchasing power, distribution infrastructure, and customer relationships drive margin stability. Strong operating margins and consistent returns on invested capital show that its competitive advantage lies in disciplined capital allocation and supply chain execution rather than flashy innovation.

VALUATION

P/E

7.3

Market Cap ($M USD)

$274

Forward P/E

4.9

PEG

0.5

PRICE TO SALES

0.3

PRICE TO BOOK

0.3

EV / EBITDA

3.7

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.96

Next Year EPS Growth Estimate

$1.40

Next Year Revenue Growth Estimate

3.90%

Return on Equity (ROE)

4.70%

Operating Margin

7.60%

Debt-to-Equity

0.6

Piotroski F-Score

5

Altman Z-Score

1

Return on Invested Capital (ROIC)

3.10%%

Current Ratio

1.7

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 27.6x earnings and 24.9x forward earnings, AIT is not statistically cheap, but it is not reckless either given a 16.70% ROIC and an Altman Z-Score of 8.7 that screams balance sheet safety. The market is assigning a moderate premium to quality, not to hypergrowth, and the 1.8 forward PEG suggests growth is decent but not explosive. Financially, this is a stable compounder with strong underlying economics, but valuation leaves limited room for execution errors. This is not deep value; it is a quality industrial priced for steady performance rather than upside surprise.

AI Exposure / Tech Reliance

As an Industrial Distribution player, AIT sits in the physical supply chain layer that increasingly integrates digital procurement, automation, and predictive maintenance tools. AI-driven inventory optimization and demand forecasting can structurally improve margins in distribution-heavy businesses like this. The industry is not tech-native, but technology adoption enhances efficiency rather than disrupts the core model.

The Bull Case

A GARP investor buys this because the internal engine is strong: 16.70% ROIC against a 5.40% ROE signals efficient capital deployment, while a 21.50% operating margin is robust for industrial distribution. The Piotroski F-Score of 8 confirms operational strength and improving fundamentals, and the 3.7 current ratio indicates ample liquidity. Add an Altman Z-Score of 8.7 and you have a financially durable operator with low bankruptcy risk. Even at 24.9x forward earnings, paying up for quality balance sheet strength, high returns on capital, and stable margins can be justified in a capital-preservation-focused portfolio.

The Bear Case

The red flags are subtle but real: a 1.8 PEG ratio implies growth may not fully justify the 27.6x earnings multiple, especially with only 9.10% short interest signaling mild skepticism rather than capitulation. Debt/Equity at 10.90% is manageable but still leverage in a cyclical industrial sector, and a 0.3 yield with a 0.70% dividend per share and payout ratio of 2.04 suggests income support is negligible. With the stock not statistically cheap on Price/Sales at 2.3 and Price/Book at 5.8, multiple compression is a real risk if growth expectations soften. This is a stock that must execute cleanly—any margin erosion or slowdown could quickly compress that premium multiple.

Market Sentiment & Smart Money

Short Interest %

20.00%

Analyst Consensus

2.56

Average Analyst Price Target

$14.29

Institutional Ownership %

103.40%

1-Year Beta

1.57

Insider Buying % (6 Mo)

11.00%%

Distance to 52-Week High

35.30%%

Distance to 52-Week Low

106.50%%