AIT

Applied Industrial Techs

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Industrial Distribution

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/28/26

Business Summary

Applied Industrial Techs operates as a large-scale industrial distributor, generating cash by sourcing, aggregating, and delivering mission-critical components to industrial customers. The business thrives on repeat purchasing behavior, embedded relationships, and the logistical complexity of supplying diverse parts across maintenance, repair, and operations workflows. Its moat is built on scale, procurement leverage, and switching costs tied to supply chain integration and reliability. High operating margins of 21.50% indicate that its distribution network and value-added services translate into durable cash flow rather than commoditized pass-through revenue.

VALUATION

P/E

27.6

Market Cap ($M USD)

$10,780

Forward P/E

24.9

PEG

1.8

PRICE TO SALES

2.3

PRICE TO BOOK

5.8

EV / EBITDA

18.1

5-Year Average P/E

DIVIDEND

Yield

0.70%

Annual Payout

$2.04

Payout Ratio

17.30%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

9.10%

Financial Health & Profitability

Earnings Per Share

$10.64

Next Year EPS Growth Estimate

$11.62

Next Year Revenue Growth Estimate

5.40%

Return on Equity (ROE)

21.50%

Operating Margin

10.90%

Debt-to-Equity

0.3

Piotroski F-Score

8

Altman Z-Score

8.7

Return on Invested Capital (ROIC)

16.70%%

Current Ratio

3.7

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Applied Industrial Techs trades at 27.6x earnings and 24.9x forward earnings, which is not optically cheap, but the combination of a Piotroski F-Score of 8 and an Altman Z-Score of 8.7 signals exceptional financial strength and low bankruptcy risk. A PEG Forward of 1.8 implies growth is not screamingly cheap, yet it is not egregiously overpriced either, particularly for a company generating a 16.70% ROIC and a 21.50% operating margin. The balance sheet stability implied by a 3.7 current ratio and 10.90% Debt/Equity dramatically reduces downside risk. This is not a distressed value play; it is a high-quality compounder trading at a reasonable, though not bargain-basement, multiple. The market is pricing in durability and moderate growth, but not euphoric upside.

AI Exposure / Tech Reliance

As an Industrial Distribution company, AIT sits in the supply chain backbone of manufacturing, a segment increasingly integrating automation, predictive maintenance, and AI-driven inventory optimization. Its 21.50% operating margin suggests operational efficiency that could be further enhanced through AI-enabled logistics and demand forecasting. The resilience here lies in mission-critical supply relationships rather than speculative tech exposure.

The Bull Case

A GARP investor buys this because the internal economics are strong and measurable. A 16.70% ROIC against a 27.6 P/E signals that capital is being reinvested at attractive rates, and the Piotroski F-Score of 8 confirms operational discipline and improving fundamentals. The 21.50% operating margin is robust for an industrial distributor, reinforcing pricing power and cost control, while the 3.7 current ratio and 10.90% Debt/Equity show a conservatively managed balance sheet. Add an Altman Z-Score of 8.7 and you have a company with fortress-like solvency metrics. With a Market Cap of $10,780 and institutional ownership listed at $305.00, this is clearly institutionally followed, reinforcing liquidity and credibility. This is the type of steady industrial compounder that long-term funds accumulate during cyclical softness.

The Bear Case

The red flags are valuation compression risk and questionable growth alignment. A PEG Forward of 1.8 suggests growth is not cheap relative to price, and the discrepancy between EPS of 18.1 and EPS Next Year (Est.) of $10.64 raises concerns about earnings normalization or volatility. Short % of Float at 9.10% is not trivial and indicates a meaningful minority is betting against the name. Return on Equity at 5.40% is modest relative to the 5.8 Price/Book multiple, suggesting shareholders are paying a premium for returns that are not extraordinary. With a TTM Yield of 0.3 and Dividend Per Share USD listed at 0.70% alongside a Payout Ratio of $2.04, income support is minimal, limiting downside cushioning if growth disappoints.

Market Sentiment & Smart Money

Short Interest %

2.60%

Analyst Consensus

1.75

Average Analyst Price Target

$305.00

Institutional Ownership %

97.10%

1-Year Beta

1.18

Insider Buying % (6 Mo)

0.70%%

Distance to 52-Week High

97.40%%

Distance to 52-Week Low

136.30%%