Applied Industrial Technologies AIT
United StatesIndustrials · Industrial DistributionUSD
400.00 USD (+19.6%)
6 analysts
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Applied Industrial Technologies is an industrial distributor supplying power transmission components, bearings, industrial fluids, and maintenance services to customers in manufacturing, energy, mining, and construction, with a business model based on the capillarity of its branch network and technical catalog.
Key points
from its scores- ✓Good share-price trend8.1
- ✓Very solid balance sheet7.7
- ✓High-quality business7.2
- ✕Demanding valuation4.0
- ✕Little or no dividend4.1
AI analysis
bottom line, main risk, context and newsQuality and balance sheet are excellent, but the demanding valuation and low dividend limit upside potential in the short term.
Applied Industrial Technologies shows solid financial health (Net Debt/EBITDA of 0.58, liquidity of 2.58) and outstanding business quality (ROE of 22.37%, ROIC of 25.51%), with revenue growth of 10.40% and earnings growth of 13.40%. However, its valuation is demanding (P/E of 30.56, EV/EBITDA of 20.54) and the dividend is low (0.61% net), which moderates the stock's overall appeal.
The main risk is the demanding valuation (P/E of 30.56 and EV/EBITDA of 20.54) in a rising interest rate environment, which could compress the multiple if growth decelerates or the market rotates toward cheaper sectors.
Context and risks
No recent relevant news and no material exposure to current macro factors. The company is a diversified industrial distributor with a solid balance sheet (Net Debt/EBITDA of 0.58) and no significant geographic or product concentration that exposes it to material regulatory, geopolitical, or business model risks.
Is Applied Industrial Technologies stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 31% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 30.6 | 25.4 | +20% |
| EV / EBITDA | 20.5 | 14.5 | +42% |
| Price / book | 6.8 | 4.1 | +68% |
| Price / sales | 2.5 | 2.1 | +20% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.0 out of 10 (median for Industrials: 5.0).
Average analyst target: 400.00 USD, +19.6% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 7.2 (sector 5.8), Growth 6.8 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 30.6
- Forward P/E
- 25.3
- EV / EBITDA
- 20.5
- Price / book
- 6.8
- Price / sales
- 2.5
- PEG
- 2.87
- Market cap
- 12.3B USD
- Enterprise value
- 12.6B USD
Profitability
- ROE
- 22.4%
- ROA
- 11.1%
- ROIC (approx.)
- 25.5%
- Gross margin
- 30.3%
- Operating margin
- 11.8%
- Net margin
- 8.3%
- Free cash flow
- 362.8M USD
- FCF yield
- 3.0%
- Cash conversion
- 59%
Solvency
- Total debt
- 483.4M USD
- Net debt
- 356.3M USD
- Cash
- 127.1M USD
- EBITDA
- 615.3M USD
- Net debt / EBITDA
- 0.58
- Debt / equity
- 25.97
- Current ratio
- 2.58
- Quick ratio
- 1.61
Growth
- Revenue growth
- +10.4%
- Earnings growth
- +13.4%
- EPS (TTM)
- 10.95 USD
- EPS (forward)
- 13.23 USD
Dividend
- Dividend yield
- 0.6%
- Payout
- 17.7%
Risk and market
- Beta
- 0.85
- Analyst consensus
- none (6)
- Target price
- 400.00 USD
- 52-week range
- 238.34 – 374.80
Recent news
All AIT news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Applied Industrial Technologies
Is Applied Industrial Technologies stock cheap or expensive?
On P/E and EV / EBITDA, it trades 31% above the Industrials median on average. Valuation score: 4.0 out of 10 (median for Industrials: 5.0). Average analyst target: 400.00 USD, +19.6% versus the price. This is not investment advice.
What score does Applied Industrial Technologies get on MeridIAn Screener?
It scores 6.3 out of 10, rank 690 of 2,130 (better than 63% of the companies analysed). Its strongest category is Momentum (8.1) and its weakest, Valuation (4.0). Analysis of 08/10/2026.
What is Applied Industrial Technologies's P/E ratio?
Its P/E is 30.6: the share price equals 30.6 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 25.3.
How much is Applied Industrial Technologies worth on the stock market?
Its market capitalisation is 12.3B USD and its enterprise value, debt included, is 12.6B USD.
How much debt does Applied Industrial Technologies have?
Its net debt (debt minus cash) is 356.3M USD. That is 0.58 times its EBITDA; the Industrials median is 1.58.
Does Applied Industrial Technologies pay a dividend?
Yes: its dividend yield is 0.61% and it pays out 18% of its earnings.
How has Applied Industrial Technologies stock performed over the last year?
It has risen 36.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 238.34 and 374.80 USD. Past performance does not guarantee future results.
What do analysts think of Applied Industrial Technologies?
6 analysts cover it; their average recommendation is “none” and their average target is 400.00 USD (+19.6% versus the price). It is an estimate, not market data.