One-glance verdict
Within fair range
$346.09 our estimate vs market $326.04
Wall Street consensus: $334.00 (-3.5% lower than our fair-value estimate)
6% below our estimate
Fundamentals snapshot
Applied Industrial Technologies, Inc.
AIT · NYQ · Industrials · Industrial Distribution
Current price
$326.04
52-week range
$223.13 - $327.00
Market cap
$12.05B
Balance sheet
Healthy
27.37x Strong cushion
Net debt $193.72M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 6.0% last year.
- Reward Returns 21.9% on equity, ahead of 66% of its peers.
- Risk Stock trades 82.1% above its 5-year average P/E.
- Risk Insider ownership is only 0.7% (peer median: 19.1%).
What this company does
Applied Industrial Technologies, Inc.
Applied Industrial Technologies is like a highly specialized hardware store and engineering firm for factories, selling all the essential replacement parts like bearings, motors, and hoses needed to keep machinery running. The company makes money both by distributing these crucial components and by designing custom automation and power systems for other industrial businesses. This is important because their products are vital for keeping the industrial economy moving, making them a key part of the broader supply chain (the complex network of companies that get a product from the manufacturer to the final customer).
How the company got here
Founded in 1923 in Cleveland, Ohio, as a seller of ball bearings for cars and trucks, the company quickly shifted its focus to industrial customers. It grew over the next several decades by opening new branches and buying smaller companies, expanding across the United States. To show it sold more than just bearings, the company changed its name from Bearings, Inc. to Applied Industrial Technologies in 1997. Since then, it has continued to acquire other companies to grow its product offerings, particularly in more specialized and technical areas, and has expanded internationally.
What it actually does
Think of Applied Industrial Technologies as a highly specialized hardware and solutions provider for factories and industrial businesses. They don't sell to everyday shoppers, but instead provide the essential parts and expertise that keep machinery running in virtually every industry. This includes everything from tiny bearings that help parts move smoothly, to powerful hydraulic systems that lift heavy loads, to advanced robots for factory automation. Beyond just selling parts, they also offer services like repairing worn-out equipment, designing custom systems, and managing a customer's spare parts inventory to make sure they always have what they need.
Service Center
This is the company's traditional and larger business, making up the majority of its sales. It operates like a network of local stores or service centers that supply a vast range of industrial products needed for maintenance, repair, and operations (often called 'MRO'). Customers like factory managers or maintenance crews can get everything from motors and belts to hoses and general supplies to keep their plants from shutting down. This part of the business focuses on having the right part available locally for quick delivery, which is critical for customers who lose money when their machinery is idle.
Engineered Solutions
This segment is a smaller but growing part of the company that provides more specialized, custom-designed solutions. Instead of just supplying a standard part, this group acts more like a team of expert consultants and engineers. They design, build, and repair complex systems using technologies like fluid power (hydraulics and pneumatics that use liquid or air to create movement), flow control (valves and pumps), and automation, including robotics. Customers pay for this deep technical expertise to solve specific, often complex, problems in their manufacturing processes, like automating a production line or designing a system for heavy mobile equipment.
What management is betting on now
The company's main focus is to grow its more specialized 'Engineered Solutions' business. These custom solutions, like automation and fluid power systems, are more profitable than simply selling standard parts and build deeper relationships with customers. They are also investing in technology and digital tools to make it easier for customers to buy from them and to improve their own operations. Finally, the company continues to actively acquire smaller, specialized companies to gain new technologies, technical experts, and access to new markets and customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$111.72M
FY2025 Q1
$122.20M
FY2025 Q2
$89.94M
FY2025 Q3
$114.90M
FY2025 Q4
$138.16M
FY2026 Q1
$112.02M
FY2026 Q2
$93.38M
FY2026 Q3
$95.38M
Revenue
$1.25B
Net income
$99.77M
Diluted EPS
2.65
Operating cash flow
$100.11M
Free cash flow
$95.38M
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Sources
Revenue
$1.16B
Net income
$95.35M
Diluted EPS
2.51
Operating cash flow
$99.66M
Free cash flow
$93.38M
Fetching…
Sources
Revenue
$1.20B
Net income
$100.81M
Diluted EPS
2.63
Operating cash flow
$119.32M
Free cash flow
$112.02M
Fetching…
Sources
Revenue
$1.22B
Net income
$107.84M
Diluted EPS
2.80
Operating cash flow
$147.05M
Free cash flow
$138.16M
Fetching…
Sources
Revenue
$1.17B
Net income
$99.80M
Diluted EPS
2.57
Operating cash flow
$122.45M
Free cash flow
$114.90M
Fetching…
Sources
Revenue
$1.07B
Net income
$93.29M
Diluted EPS
2.39
Operating cash flow
$95.14M
Free cash flow
$89.94M
Fetching…
Sources
Revenue
$1.10B
Net income
$92.06M
Diluted EPS
2.36
Operating cash flow
$127.75M
Free cash flow
$122.20M
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Sources
Revenue
$1.16B
Net income
$103.49M
Diluted EPS
2.64
Operating cash flow
$119.23M
Free cash flow
$111.72M
Fetching…
Sources
Is it cheap or expensive?
Fair value $346.09 vs current price $326.04
Wall Street consensus is the average analyst price target: $334.00 (-3.5% lower than our fair-value estimate).
Our most-likely fair value is $346.09 a share — about 6.2% away from today's price of $326.04, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $193.7M. Interest coverage 27.4x.
Net debt
$193.72M
Interest coverage
27.37x
Applied Industrial Technologies, Inc.'s profit covers its interest bill about 27.4 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
AIT
BASELINE
Applied Industrial Technologies, Inc.
Total debt $365.30M Interest coverage 27.37x This is the baseline the peer rows are being compared against.
Total debt $6.51B Interest coverage 3.19x -88% vs AIT Carries about 8.6x less debt cushion than AIT.
Total debt $558.73M Interest coverage 12.99x -53% vs AIT Carries about 2.1x less debt cushion than AIT.
Total debt $902.01M Interest coverage 2.92x -89% vs AIT Carries about 9.4x less debt cushion than AIT.
Total debt $99.20M Interest coverage 976.00x +3,466% vs AIT Carries about 35.7x more debt cushion than AIT.
Total debt $691.30M Interest coverage 1.72x -94% vs AIT Carries about 15.9x less debt cushion than AIT.
What you should know
The case for and against AIT
3 Rewards
2 Risks
Rewards
-
Revenue grew 6.0% last year.
-
Returns 21.9% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 82.1% above its 5-year average P/E.
-
Insider ownership is only 0.7% (peer median: 19.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.79x
Forward P/E
27.67x
P/B
6.50x
P/S
2.49x
EV/EBITDA
20.03x
PEG ratio
2.74x
Profitability
How much profit each dollar creates
Gross margin
30.4%
Operating margin
11.0%
Net margin
8.3%
ROE
21.9%
ROA
10.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.20x
Current ratio
2.95x
Quick ratio
1.83x
Total debt
$365.30M
Total cash
$171.58M
Growth
How the business has been compounding
Revenue TTM
$4.84B
Revenue 5Y CAGR
9.0%
EPS TTM
10.59
EPS 5Y CAGR
38.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$466.13M
Free CF TTM
$465.20M
FCF margin
9.6%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
17.9%
Last ex-div date
2026-05-15