Applied Industrial Technologies (AIT) AI Stock Analysis

• Market Cap: $9.67B
• Dividend Yield: 0.68%
• Average Volume (3M): 268.93K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.16
• Revenue Growth: 4.03%
• EPS Growth: 5.93%
• Country: US
• Employees: 6,818
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 2.63
• Shares Outstanding: 37,717,910
• 10 Day Avg. Volume: 298,806
• 30 Day Avg. Volume: 268,927
• 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: 1.05
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 7.15
• Enterprise Value/Ebitda: 16.93
• 1Y Price Target: $298.75
• Price Target Upside: 15.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 10.64
• Revenue Forecast (FY): $4.86B

• Rating: 74 Outperform
• Price Target: $286.00 ▲(10.90% Upside)

Applied Industrial Technologies has a solid financial foundation with strong earnings growth and positive outlook from the latest earnings call. However, technical indicators suggest neutral momentum, and the valuation appears moderate with a low dividend yield. The company's robust financial performance and positive earnings call are the most significant factors driving the score.

Positive Factors

Earnings Growth

Strong earnings growth reflects effective cost management and operational efficiency, supporting long-term profitability and shareholder value.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and flexibility, enabling strategic investments and growth opportunities.

Positive Order Momentum

Positive order momentum indicates strong demand and future revenue potential, supporting sustained growth in key business segments.

Negative Factors

Mixed End Market Demand

Uncertain demand in key markets can impact revenue stability and growth, posing challenges to maintaining consistent performance.

Engineered Solutions Segment Challenges

Declining sales in a key segment may indicate competitive pressures or market saturation, affecting overall growth prospects.

Inflationary Pressures

Inflationary pressures can erode profit margins and increase operational costs, challenging the company's ability to maintain profitability.

Applied Industrial Technologies Business Overview & Revenue Model

Company Description

Applied Industrial Technologies (AIT) is a leading distributor of industrial products and services, specializing in various sectors such as fluid power, power transmission, bearings, and industrial supplies. The company serves a diverse range of industries including manufacturing, construction, and transportation. AIT offers a comprehensive portfolio of products, including seals, hydraulic components, and maintenance supplies, along with value-added services like inventory management and engineering solutions.

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 a strong financial profile with consistent revenue growth and solid profitability. The balance sheet is robust, with low leverage and high return on equity, while cash flow generation remains stable. However, there is room for improvement in cash flow growth.

Income Statement

Applied Industrial Technologies demonstrates strong financial performance with consistent revenue growth, highlighted by a 2.2% increase in TTM. The company maintains healthy profit margins, with a gross profit margin of 30.4% and a net profit margin of 8.6% in TTM. EBIT and EBITDA margins are stable, reflecting efficient operations. Overall, the income statement indicates robust profitability and growth.

Balance Sheet

The balance sheet shows a solid financial position with a low debt-to-equity ratio of 0.18 in TTM, indicating prudent leverage management. Return on equity is strong at 18.6%, showcasing effective use of shareholder funds. The equity ratio is 100%, suggesting a well-capitalized structure. However, the decrease in total debt over time reflects a cautious approach to debt management.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -2.2% in TTM, which could be a concern. However, the operating cash flow to net income ratio is healthy at 0.97, indicating good cash generation relative to earnings. The free cash flow to net income ratio is strong at 0.94, reflecting efficient cash conversion. Overall, cash flow management is stable but shows room for improvement in growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.66B	4.56B	4.48B	4.41B	3.81B	3.24B
Gross Profit	1.42B	1.38B	1.34B	1.29B	1.11B	935.52M
EBITDA	599.34M	579.66M	571.03M	527.67M	410.13M	263.01M
Net Income	401.73M	392.99M	385.76M	346.74M	257.41M	144.76M
Balance Sheet
Total Assets	3.19B	3.18B	2.95B	2.74B	2.45B	2.27B
Cash, Cash Equivalents and Short-Term Investments	418.72M	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	1.30B	1.33B	1.26B	1.28B	1.30B	1.34B
Stockholders Equity	1.88B	1.84B	1.69B	1.46B	1.15B	932.55M
Cash Flow
Free Cash Flow	455.02M	465.20M	346.53M	317.49M	169.45M	225.84M
Operating Cash Flow	483.95M	492.38M	371.39M	343.97M	187.57M	241.70M
Investing Cash Flow	-313.08M	-318.75M	-95.41M	-60.83M	-35.66M	-44.93M
Financing Cash Flow	-290.13M	-245.61M	-156.47M	-126.89M	-223.03M	-213.04M

Applied Industrial Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 257.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 257.9 is above the 20-day moving average (MA) of 253.62, below the 50-day MA of 258.67, and above the 200-day MA of 245.94, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 44.36 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
DXPE	80 Outperform	$1.92B	23.30	20.33%	―	13.93%	48.25%
WCC	74 Outperform	$12.26B	19.78	13.06%	0.69%	5.28%	1.97%
AIT	74 Outperform	$9.67B	24.67	22.10%	0.68%	4.03%	5.93%
MSM	64 Neutral	$4.82B	24.23	14.34%	3.92%	-1.35%	-22.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DSGR	51 Neutral	$1.24B	―	-1.68%	―	14.46%	-588.82%
TITN	47 Neutral	$383.78M	-6.08	-9.63%	―	-8.12%	-204.81%

Applied Industrial Technologies Corporate Events

Applied Industrial Technologies Reports Strong Q1 Results

Applied Industrial Technologies, Inc. is a leading distributor and technical solutions provider specializing in industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, serving various industrial markets through its multi-channel capabilities.

Applied Industrial Technologies Reports Strong Earnings Growth

The recent earnings call for Applied Industrial Technologies, Inc. showcased a robust beginning to the fiscal year, marked by significant earnings growth and positive order momentum. Despite facing mixed demand in certain end markets and inflationary pressures, the company demonstrated strong performance, particularly in its Service Center segment and through the Hydradyne acquisition, indicating a promising outlook.

Applied Industrial Technologies Secures $900M Credit Facility

On October 24, 2025, Applied Industrial Technologies, Inc. entered into a new $900 million senior unsecured revolving credit facility with KeyBank National Association and other financial institutions. This agreement, which replaces a prior credit agreement from December 2021, will be used to refinance existing debt and support ongoing corporate needs, including potential acquisitions. The credit facility includes options for increased borrowing and contains customary covenants and interest rate terms based on the company’s financial ratios, impacting its financial flexibility and operational strategy.

The most recent analyst rating on (AIT) stock is a Buy with a $294.00 price target. To see the full list of analyst forecasts on Applied Industrial Technologies stock, see the AIT Stock Forecast page.

Applied Industrial Technologies Holds Annual Shareholders Meeting

On October 21, 2025, Applied Industrial Technologies held its annual shareholders meeting where key decisions were made. Shareholders elected three directors for a three-year term, approved a nonbinding advisory vote on executive compensation, and ratified Deloitte & Touche LLP as the independent auditors for the fiscal year ending June 30, 2026. These decisions are crucial for the company’s governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (AIT) stock is a Buy with a $294.00 price target. To see the full list of analyst forecasts on Applied Industrial Technologies stock, see the AIT Stock Forecast page.

Applied Industrial Technologies Reports Record Earnings and Strategic Growth

The recent earnings call for Applied Industrial Technologies, Inc. reflected a balanced sentiment, showcasing both impressive achievements and notable challenges. The company celebrated record-breaking financial performance and strategic acquisitions, while also acknowledging demand challenges in several markets that impacted certain segments. Overall, the sentiment was one of cautious optimism, with significant successes tempered by underlying market difficulties.

Applied Industrial Technologies Faces Financial Risks from Unsecured Trade Credit Reliance

Applied Industrial Technologies, Inc. faces significant financial risk due to its reliance on unsecured trade credit extended to a diverse customer base. Should these customers encounter financial difficulties stemming from economic downturns, competitive pressures, or decreased product demand, they may struggle to fulfill their payment obligations. This inability or delay in payments could severely impact the company’s financial health and operational results. Consequently, the company must closely monitor customer creditworthiness to mitigate potential adverse effects on its financial condition.

Applied Industrial Technologies Reports Strong Fiscal 2025 Results

Applied Industrial Technologies, Inc. is a leading distributor and technical solutions provider specializing in industrial motion, fluid power, flow control, and automation technologies, serving a wide range of industrial markets with a focus on maintenance, repair, and operations (MRO) and original equipment manufacturing (OEM) applications.