Applied Industrial Technologies (AIT) AI Stock Analysis

• Market Cap: $10.31B
• Dividend Yield: 0.64%
• Average Volume (3M): 325.96K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 1.14
• Revenue Growth: 1.88%
• EPS Growth: 2.91%
• Country: US
• Employees: 6,818
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Distribution
• EPS (TTM): 2.84
• Shares Outstanding: 38,084,640
• 10 Day Avg. Volume: 320,210
• 30 Day Avg. Volume: 325,958
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 6.49
• Enterprise Value/Ebitda: 16.51
• 1Y Price Target: $310.00
• Price Target Upside: 13.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: $310.00 ▲(13.54% Upside)

Applied Industrial Technologies demonstrates strong financial performance and positive technical indicators, which are the primary drivers of its overall score. The valuation suggests the stock is somewhat expensive, and the earnings call reflects both strengths in margin expansion and challenges in sales decline and market conditions. These factors collectively contribute to a solid but cautious outlook.

Positive Factors

Acquisitions

The acquisition of Hydradyne is expected to contribute significantly to AIT's growth story, with projected sales and EBITDA expected to be accretive to earnings per share.

Earnings Performance

Analyst expects AIT earnings to beat expectations or at least be in line, with shares likely to react positively.

Financial Health

Ample capacity remains for additional mergers and acquisitions, as well as other capital deployment opportunities, indicating strong financial health.

Negative Factors

Market Performance

Organic sales were still negative with a weaker December and the first two weeks of January.

Sales Growth

Organic daily sales showed a decline, indicating challenges in maintaining sales growth in certain sectors.

Applied Industrial Technologies Business Overview & Revenue Model

Company Description

Applied Industrial Technologies (AIT) is a leading industrial distributor and service provider that specializes in delivering a wide range of products and services for maintenance, repair, operations, and production across various industries. The company operates in sectors such as fluid power, flow control, bearings, power transmission, industrial rubber products, and general maintenance supplies. AIT serves a diverse customer base, including manufacturing, energy, transportation, and infrastructure sectors, through its extensive network of service centers and distribution facilities.

How the Company Makes Money

Applied Industrial Technologies generates revenue primarily through the distribution and sale of industrial products and components, as well as by providing value-added services such as engineering, design, assembly, and maintenance. The company's key revenue streams include product sales, service contracts, and customized solutions tailored to specific customer needs. AIT benefits from strategic partnerships with leading manufacturers and suppliers, allowing it to offer a comprehensive portfolio of high-quality products. Additionally, the company's extensive distribution network and focus on customer service enhance its ability to cross-sell and upsell products and services, contributing to its overall earnings.

Applied Industrial Technologies Financial Statement Overview

Summary

Applied Industrial Technologies exhibits strong financial performance with consistent revenue and profit growth, effective leverage management, and robust cash flow generation. The company is well-positioned in its industry, although careful monitoring of debt levels is advisable to maintain financial stability.

Income Statement

Applied Industrial Technologies has demonstrated strong revenue growth with a consistent increase in gross profit margins over the years. The company has maintained healthy EBIT and EBITDA margins, indicating efficient operational management. The net profit margin has also improved, reflecting enhanced profitability. Overall, the income statement shows a positive growth trajectory and profitability.

Balance Sheet

The balance sheet reflects a solid financial position with a decreasing debt-to-equity ratio, indicating improved leverage management. The return on equity remains strong, showcasing effective use of shareholder funds. However, the equity ratio suggests moderate reliance on debt financing, which could pose a risk if not managed carefully.

Cash Flow

The cash flow statement reveals robust free cash flow growth, supporting the company's ability to fund operations and investments. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also healthy, underscoring the company's ability to convert earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.56B	4.56B	4.48B	4.41B	3.81B	3.24B
Gross Profit	1.38B	1.38B	1.34B	1.29B	1.11B	935.52M
EBITDA	543.49M	562.06M	552.35M	520.39M	410.80M	274.57M
Net Income	392.99M	392.99M	385.76M	346.74M	257.41M	144.76M
Balance Sheet
Total Assets	3.18B	3.18B	2.95B	2.74B	2.45B	2.27B
Cash, Cash Equivalents and Short-Term Investments	388.42M	388.42M	460.62M	344.04M	184.47M	257.75M
Total Debt	572.30M	572.30M	734.94M	725.97M	800.25M	919.99M
Total Liabilities	1.33B	1.33B	1.26B	1.28B	1.30B	1.34B
Stockholders Equity	1.84B	1.84B	1.69B	1.46B	1.15B	932.55M
Cash Flow
Free Cash Flow	465.20M	465.20M	346.53M	317.49M	169.45M	225.84M
Operating Cash Flow	492.38M	492.38M	371.39M	343.97M	187.57M	241.70M
Investing Cash Flow	-318.75M	-318.75M	-95.41M	-60.83M	-35.66M	-44.93M
Financing Cash Flow	-245.61M	-245.61M	-156.47M	-126.89M	-223.03M	-213.04M

Applied Industrial Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 273.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIT, the sentiment is Positive. The current price of 273.04 is above the 20-day moving average (MA) of 267.97, above the 50-day MA of 250.28, and above the 200-day MA of 245.24, indicating a bullish trend. The MACD of 5.27 indicates Positive momentum. The RSI at 62.64 is Neutral, neither overbought nor oversold. The STOCH value of 79.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIT.

Applied Industrial Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCC	80 Outperform	$10.28B	16.54	13.78%	0.80%	1.30%	-1.09%
DXPE	79 Outperform	$1.86B	22.68	20.33%	―	13.93%	48.25%
AIT	77 Outperform	$10.31B	27.15	22.24%	0.64%	1.88%	2.91%
MSM	74 Outperform	$4.88B	24.70	14.34%	3.88%	-4.11%	-31.26%
DSGR	67 Neutral	$1.48B	395.94	0.65%	―	13.48%	―
Sector *	63 Neutral	$10.80B	16.55	6.58%	2.06%	2.37%	-15.86%
TITN	53 Neutral	$454.77M	11.08	-9.38%	―	-5.32%	-163.42%

Applied Industrial Technologies Corporate Events

Applied Industrial Extends Securitization Facility to 2028

On July 10, 2025, Applied Industrial Technologies, Inc. amended its accounts receivable securitization facility, extending its maturity to July 10, 2028, from the previous expiration date of August 4, 2026. This amendment involved changes to the Receivables Financing Agreement and the Purchase and Sale Agreement, with AIT Receivables LLC acting as the borrower and PNC Bank as the administrative agent. The transaction included customary fees paid by AIT Receivables to the lenders.

The most recent analyst rating on (AIT) stock is a Buy with a $305.00 price target. To see the full list of analyst forecasts on Applied Industrial Technologies stock, see the AIT Stock Forecast page.