(AIT) Applied Industrial - Overview
Stock: Bearings, Power-Transmission, Fluid-Power, Automation, Motion-Control
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.73% |
| Yield on Cost 5y | 3.05% |
| Yield CAGR 5y | 8.66% |
| Payout Consistency | 95.6% |
| Payout Ratio | 18.0% |
| Risk 5d forecast | |
|---|---|
| Volatility | 32.8% |
| Relative Tail Risk | -4.84% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.32 |
| Alpha | -6.96 |
| Character TTM | |
|---|---|
| Beta | 1.195 |
| Beta Downside | 1.094 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.42% |
| CAGR/Max DD | 1.09 |
Description: AIT Applied Industrial January 04, 2026
Applied Industrial Technologies (NYSE:AIT) is a global distributor of motion, power, control, and automation solutions, operating across North America, Australia, New Zealand, Singapore, and Costa Rica. The business is split into two segments: the Service Center segment, which supplies bearings, power-transmission, fluid-power, and general maintenance products, and the Engineered Solutions segment, which designs, integrates, and services hydraulic/pneumatic systems, advanced automation, and machine-vision technologies for OEMs and industrial integrators.
Key operating metrics that analysts watch include FY 2023 revenue of roughly $4.5 billion, an adjusted EBITDA margin hovering around 9 %, and a return on invested capital (ROIC) near 12 %, reflecting the capital-light, high-turnover nature of the distribution model. Recent growth has been driven by rising demand for factory automation (U.S. manufacturing PMI above 55 in 2024) and a strategic acquisition of a robotics-integration firm in early 2024, which expanded AIT’s footprint in collaborative-robot solutions. The company’s exposure to cyclical sectors such as automotive and aerospace introduces downside risk if industrial production contracts, but its diversified end-market mix-including food processing, offshore, and downstream energy-provides a buffer.
For a deeper quantitative assessment, you may want to explore the ValueRay analysis of AIT to see how these drivers translate into forward-looking valuation metrics.
Piotroski VR‑10 (Strict, 0-10) 8.5
| Net Income: 403.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 1.30 > 1.0 |
| NWC/Revenue: 26.78% < 20% (prev 26.46%; Δ 0.31% < -1%) |
| CFO/TA 0.15 > 3% & CFO 486.9m > Net Income 403.8m |
| Net Debt (166.3m) to EBITDA (608.8m): 0.27 < 3 |
| Current Ratio: 3.68 > 1.5 & < 3 |
| Outstanding Shares: last quarter (38.2m) vs 12m ago -2.06% < -2% |
| Gross Margin: 30.04% > 18% (prev 0.30%; Δ 2974 % > 0.5%) |
| Asset Turnover: 153.3% > 50% (prev 147.1%; Δ 6.15% > 0%) |
| Interest Coverage Ratio: 36.44 > 6 (EBITDA TTM 608.8m / Interest Expense TTM 14.9m) |
Altman Z'' 8.61
| A: 0.40 (Total Current Assets 1.75b - Total Current Liabilities 475.5m) / Total Assets 3.16b |
| B: 0.83 (Retained Earnings 2.63b / Total Assets 3.16b) |
| C: 0.17 (EBIT TTM 542.0m / Avg Total Assets 3.10b) |
| D: 1.98 (Book Value of Equity 2.54b / Total Liabilities 1.28b) |
| Altman-Z'' Score: 8.61 = AAA |
Beneish M -3.05
| DSRI: 0.98 (Receivables 722.0m/696.2m, Revenue 4.75b/4.48b) |
| GMI: 1.00 (GM 30.04% / 30.09%) |
| AQI: 0.96 (AQ_t 0.35 / AQ_t-1 0.36) |
| SGI: 1.06 (Revenue 4.75b / 4.48b) |
| TATA: -0.03 (NI 403.8m - CFO 486.9m) / TA 3.16b) |
| Beneish M-Score: -3.05 (Cap -4..+1) = AA |
What is the price of AIT shares?
Over the past week, the price has changed by +12.03%, over one month by +9.93%, over three months by +12.56% and over the past year by +9.77%.
Is AIT a buy, sell or hold?
- StrongBuy: 6
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the AIT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 304.2 | 4.3% |
| Analysts Target Price | 304.2 | 4.3% |
| ValueRay Target Price | 362.9 | 24.4% |
AIT Fundamental Data Overview February 01, 2026
P/E Forward = 25.0627
P/S = 2.0661
P/B = 5.1824
P/EG = 2.5039
Revenue TTM = 4.75b USD
EBIT TTM = 542.0m USD
EBITDA TTM = 608.8m USD
Long Term Debt = 572.3m USD (from longTermDebt, last quarter)
Short Term Debt = 39.8m USD (from shortTermDebt, last fiscal year)
Debt = 572.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 166.3m USD (from netDebt column, last quarter)
Enterprise Value = 9.99b USD (9.82b + Debt 572.3m - CCE 406.0m)
Interest Coverage Ratio = 36.44 (Ebit TTM 542.0m / Interest Expense TTM 14.9m)
EV/FCF = 21.86x (Enterprise Value 9.99b / FCF TTM 456.8m)
FCF Yield = 4.57% (FCF TTM 456.8m / Enterprise Value 9.99b)
FCF Margin = 9.61% (FCF TTM 456.8m / Revenue TTM 4.75b)
Net Margin = 8.49% (Net Income TTM 403.8m / Revenue TTM 4.75b)
Gross Margin = 30.04% ((Revenue TTM 4.75b - Cost of Revenue TTM 3.33b) / Revenue TTM)
Gross Margin QoQ = 28.94% (prev 30.13%)
Tobins Q-Ratio = 3.16 (Enterprise Value 9.99b / Total Assets 3.16b)
Interest Expense / Debt = 0.76% (Interest Expense 4.36m / Debt 572.3m)
Taxrate = 22.34% (27.4m / 122.8m)
NOPAT = 420.9m (EBIT 542.0m * (1 - 22.34%))
Current Ratio = 3.68 (Total Current Assets 1.75b / Total Current Liabilities 475.5m)
Debt / Equity = 0.31 (Debt 572.3m / totalStockholderEquity, last quarter 1.87b)
Debt / EBITDA = 0.27 (Net Debt 166.3m / EBITDA 608.8m)
Debt / FCF = 0.36 (Net Debt 166.3m / FCF TTM 456.8m)
Total Stockholder Equity = 1.86b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.02% (Net Income 403.8m / Total Assets 3.16b)
RoE = 21.74% (Net Income TTM 403.8m / Total Stockholder Equity 1.86b)
RoCE = 22.30% (EBIT 542.0m / Capital Employed (Equity 1.86b + L.T.Debt 572.3m))
RoIC = 17.32% (NOPAT 420.9m / Invested Capital 2.43b)
WACC = 9.78% (E(9.82b)/V(10.39b) * Re(10.32%) + D(572.3m)/V(10.39b) * Rd(0.76%) * (1-Tc(0.22)))
Discount Rate = 10.32% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
[DCF Debug] Terminal Value 74.18% ; FCFF base≈434.3m ; Y1≈500.2m ; Y5≈702.5m
Fair Price DCF = 233.5 (EV 8.88b - Net Debt 166.3m = Equity 8.71b / Shares 37.3m; r=9.78% [WACC]; 5y FCF grow 17.79% → 2.90% )
EPS Correlation: 82.34 | EPS CAGR: 10.10% | SUE: 0.49 | # QB: 0
Revenue Correlation: 75.59 | Revenue CAGR: 4.65% | SUE: -0.47 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.66 | Chg30d=-0.072 | Revisions Net=+2 | Analysts=8
EPS current Year (2026-06-30): EPS=10.67 | Chg30d=-0.004 | Revisions Net=+1 | Growth EPS=+5.4% | Growth Revenue=+6.8%
EPS next Year (2027-06-30): EPS=11.62 | Chg30d=+0.026 | Revisions Net=+1 | Growth EPS=+8.9% | Growth Revenue=+5.6%