Applied Industrial Technologies (AIT)
NYSE:AIT
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Applied Industrial Technologies
(NYSE:AIT)
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Rating:77Outperform
Price Target:
$338.00
â–²(16.14% Upside)
Action:ReiteratedDate:04/28/26
The score is driven primarily by strong financial quality (rising profitability, improved leverage, and solid cash conversion) and upbeat earnings-call guidance/tone. Technicals support the uptrend but look somewhat extended, while valuation (P/E ~25.4 and low dividend yield) is the main restraint.
Positive Factors
Margin Expansion & Profitability
Sustained margin improvement and multi-year revenue growth indicate rising operational efficiency and pricing power. Higher net margins support cash generation, improve return on equity, and create durable earnings resilience across cycles, enabling reinvestment and shareholder returns over 2–6 months and beyond.
Negative Factors
Revenue Growth Deceleration
A durable slowdown to low-single-digit organic growth suggests maturation of core end markets and more limited organic upside. This pressures long‑term operating leverage and increases reliance on cross‑sell, pricing and M&A to sustain above‑market growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion & Profitability
Sustained margin improvement and multi-year revenue growth indicate rising operational efficiency and pricing power. Higher net margins support cash generation, improve return on equity, and create durable earnings resilience across cycles, enabling reinvestment and shareholder returns over 2–6 months and beyond.
Read all positive factors
Applied Industrial Technologies (AIT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.20B
Dividend Yield0.7%
Average Volume (3M)317.76K
Price to Earnings (P/E)24.9
Beta (1Y)1.12
Revenue Growth7.54%
EPS Growth6.04%
CountryUS
Employees6,818
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)2.65
Shares Outstanding36,959,540
10 Day Avg. Volume279,910
30 Day Avg. Volume317,761
Financial Highlights & Ratios
PEG Ratio8.07
Price to Book (P/B)4.83
Price to Sales (P/S)1.95
P/FCF Ratio19.13
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue2.33
Enterprise Value/Gross Profit7.74
Enterprise Value/Ebitda18.74
Forecast
1Y Price Target
$332.33Price Target Upside14.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)10.7
Revenue Forecast (FY)$4.90B
Applied Industrial Technologies Business Overview & Revenue Model
Company Description
Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates through two segments, Service Center Based Distribution, ...
How the Company Makes Money
AIT primarily makes money by selling industrial products and providing value-added services to industrial customers. Its core revenue stream is the distribution of MRO and OEM-related components—such as bearings, mechanical power transmission prod...
Applied Industrial Technologies Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive tone: strong top-line momentum (6% organic sales), record quarterly EBITDA, notable Engineered Solutions strength, improved Service Center trends, healthy cash generation and active capital deployment with tightened guidance toward the high end. Headwinds include LIFO-driven margin pressure, higher SG&A dollars, softer pockets across several end markets, tougher late-quarter comps, and ongoing geopolitical/trade uncertainty. On balance, the encouraging revenue acceleration, margin resilience ex-LIFO, and solid cash/capital actions weigh heavier than the manageable operating and macro headwinds.Positive Updates
Solid Top-Line Growth
Consolidated sales increased 7.3% year over year, with organic sales up 6.0%. Average organic daily sales rose ~5% sequentially and March organic sales were up ~10% year over year. Early April organic sales were trending up high-single-digits year to date.
Negative Updates
LIFO Inventory Cost Headwinds
LIFO expense increased to $5.6 million from $2.2 million year over year, creating an unfavorable ~27 basis point impact on gross margin and reducing reported EBITDA growth by ~2.3 percentage points; management expects slightly higher LIFO expense in Q4.
Read all updates
Q3-2026 Updates
Positive
Negative
Solid Top-Line Growth
Consolidated sales increased 7.3% year over year, with organic sales up 6.0%. Average organic daily sales rose ~5% sequentially and March organic sales were up ~10% year over year. Early April organic sales were trending up high-single-digits year to date.
Read all positive updates
Company Guidance
Management tightened full‑year fiscal 2026 guidance toward the high end—now forecasting EPS of $10.60–$10.75 on sales growth of 7.2%–7.7% (organic 3.8%–4.2%) with EBITDA margins of 12.3%–12.4% (prior guidance: EPS $10.45–$10.75, sales 5.5%–7.0%, organic 2.5%–4.0%, EBITDA 12.2%–12.4%); they expect fiscal Q4 EPS of $2.85–$2.96 on organic sales growth of 4.0%–5.5% with Q4 EBITDA margins of 12.6%–12.8%, a Q4 tax rate of about 24.4%–24.6%, and slightly higher LIFO expense sequentially, note inorganic M&A sales contribution should be slightly lower in Q4 as they anniversary the IRIS acquisition (with initial Thompson contribution), April month‑to‑date organic sales are up high‑single‑digits while May and June comps step up ~200 bps each, and the company targets mid‑ to high‑teen incremental EBITDA margins at mid‑single‑digit organic growth over an annualized basis.Applied Industrial Technologies Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.84B | 4.56B | 4.48B | 4.41B | 3.81B | 3.24B |
| Gross Profit | 1.45B | 1.38B | 1.34B | 1.29B | 1.11B | 935.52M |
| EBITDA | 600.55M | 579.66M | 571.03M | 527.67M | 410.13M | 263.01M |
| Net Income | 403.76M | 392.99M | 385.76M | 346.74M | 257.41M | 144.76M |
Balance Sheet | ||||||
| Total Assets | 2.99B | 3.18B | 2.95B | 2.74B | 2.45B | 2.27B |
| Cash, Cash Equivalents and Short-Term Investments | 171.58M | 388.42M | 460.62M | 344.04M | 184.47M | 257.75M |
| Total Debt | 365.30M | 572.30M | 734.94M | 622.10M | 800.25M | 919.99M |
| Total Liabilities | 1.13B | 1.33B | 1.26B | 1.28B | 1.30B | 1.34B |
| Stockholders Equity | 1.86B | 1.84B | 1.69B | 1.46B | 1.15B | 932.55M |
Cash Flow | ||||||
| Free Cash Flow | 438.93M | 465.20M | 346.53M | 317.49M | 169.45M | 225.84M |
| Operating Cash Flow | 466.13M | 492.38M | 371.39M | 343.97M | 187.57M | 241.70M |
| Investing Cash Flow | -56.92M | -318.75M | -95.41M | -60.83M | -35.66M | -44.93M |
| Financing Cash Flow | -595.60M | -245.61M | -156.47M | -126.89M | -223.03M | -213.04M |
Applied Industrial Technologies Technical Analysis
Positive
291.03
Price Trends
274.50
Positive
269.57
Positive
263.88
Positive
Market Momentum
5.80
Negative
64.36
Neutral
74.05
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 291.03 is above the 20-day moving average (MA) of 273.53, above the 50-day MA of 274.50, and above the 200-day MA of 263.88, indicating a bullish trend. The MACD of 5.80 indicates Negative momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 74.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIT.
Applied Industrial Technologies Risk Analysis
Applied Industrial Technologies disclosed 20 risk factors in its most recent earnings report. Applied Industrial Technologies reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Applied Industrial Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.20B | 24.95 | 21.64% | 0.70% | 7.54% | 6.04% | |
77 Outperform | $54.36B | 28.33 | 45.93% | 0.86% | 4.51% | -8.75% | |
76 Outperform | $1.26B | 15.56 | 23.59% | 3.48% | 4.80% | 17.41% | |
74 Outperform | $51.56B | 39.20 | 33.25% | 2.10% | 10.94% | 12.68% | |
71 Outperform | $17.28B | 22.02 | 13.02% | 0.72% | 11.16% | 6.33% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $5.73B | 31.30 | 15.00% | 3.96% | 2.16% | -2.18% |
* Industrials Sector Average
AIT
Applied Industrial Technologies
302.99
80.52
36.20%
FAST
Fastenal Company
44.91
4.55
11.26%
MSM
MSC Industrial
102.63
28.34
38.15%
GIC
Global Industrial Company
33.03
8.34
33.76%
GWW
WW Grainger
1,148.62
92.50
8.76%
WCC
Wesco International
354.59
193.33
119.89%
Applied Industrial Technologies Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Applied Industrial Boosts Guidance, Launches New Share Buyback
Positive
Apr 28, 2026
Applied Industrial Technologies reported solid results for its fiscal third quarter ended March 31, 2026, with net sales rising 7.3% year over year to $1.3 billion and organic sales up 6.0%, driven by a 9.3% gain in its Engineered Solutions segmen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.