Applied Industrial Technologies (AIT) AI Stock Analysis

• Market Cap: $10.02B
• Dividend Yield: 0.67%
• Average Volume (3M): 252.49K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.13
• Revenue Growth: 1.88%
• EPS Growth: 2.91%
• Country: US
• Employees: 6,818
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 2.84
• Shares Outstanding: 37,751,072
• 10 Day Avg. Volume: 232,319
• 30 Day Avg. Volume: 252,490
• PEG Ratio: 8.07
• Price to Book (P/B): 4.83
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 19.13
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 6.75
• Enterprise Value/Ebitda: 16.10
• 1Y Price Target: $297.80
• Price Target Upside: 14.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $289.00 ▲(11.42% Upside)

Applied Industrial Technologies demonstrates strong financial performance and positive earnings call highlights, which are the most significant factors in its score. However, technical analysis indicates short-term bearish momentum, and the valuation suggests the stock may be overvalued. These factors contribute to a balanced overall score.

Positive Factors

Strong Cash Generation

Robust cash generation enhances financial flexibility, enabling strategic investments and shareholder returns, supporting long-term growth.

Strategic Acquisitions

Acquisitions like Hydradyne expand market reach and capabilities, driving growth and competitive positioning in the industrial sector.

Revenue Growth

Exceeding sales expectations and returning to organic growth indicate strong market demand and effective business strategies, supporting future revenue.

Negative Factors

Muted Demand Environment

Declining demand in key markets can hinder growth prospects and revenue stability, posing challenges to maintaining current performance levels.

Service Center Challenges

Declines in the Service Center segment reflect operational challenges and market pressures, potentially impacting overall business performance.

AR Provisioning Impact

Increased AR provisioning affects profitability, indicating potential issues with receivables management that could impact financial health.

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, and Fluid Power & Flow Control. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides equipment repair and technical support services. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.

How the Company Makes Money

Applied Industrial Technologies generates revenue primarily through the sale of industrial products and components, alongside providing related services. The company's key revenue streams include direct product sales, which account for a significant portion of its earnings, and service offerings that include technical support, inventory management, and customized engineering solutions. AIT benefits from a broad customer base that spans various industries, creating a stable demand for its products. Additionally, the company often engages in partnerships with manufacturers to distribute their products, enhancing its product offering and market reach. These collaborations, along with a focus on customer service and operational efficiency, contribute to AIT's overall profitability.

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	579.77M	579.66M	571.03M	527.67M	410.13M	263.01M
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	770.62M	734.94M	622.10M	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: Negative
• Last Price: 259.37
• 50DMA: Negative
• 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 Negative. The current price of 259.37 is below the 20-day moving average (MA) of 263.93, below the 50-day MA of 264.90, and above the 200-day MA of 245.40, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 44.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIT.

Applied Industrial Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXPE	80 Outperform	1.83B	22.30	18.50%	―	13.93%	48.25%
WCC	78 Outperform	10.11B	16.45	13.91%	0.85%	1.30%	-1.09%
MSM	75 Outperform	4.95B	25.63	14.52%	3.82%	-4.11%	-31.26%
AIT	73 Outperform	$10.02B	26.22	22.24%	0.67%	1.88%	2.91%
DSGR	62 Neutral	1.38B	355.13	0.66%	―	13.48%	―
TITN	48 Neutral	401.08M	-6.35	-10.04%	―	-8.12%	-204.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.