Applied Industrial Technologies, Inc. (AIT) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Applied Industrial Technologies, Inc. (AIT) Industrial Operations Profile

Applied Industrial Technologies, Inc. is a leading distributor of industrial motion, power, control, and automation solutions, serving diverse sectors across North America, Australia, New Zealand, and Singapore. With a comprehensive product portfolio and extensive service network, AIT supports the operational needs of various industries.

What Is the Investment Thesis for AIT?

Applied Industrial Technologies presents a notable research candidate due to its established market position, diverse product portfolio, and extensive service network. With a market capitalization of $11.8B and a P/E ratio of 28.24, AIT demonstrates financial stability. The company's free cash flow of $0.31 billion and a profit margin of 8.3% indicate efficient operations. Growth catalysts include expanding its automation solutions and leveraging its distribution network. However, potential risks include economic cyclicality and competition from other industrial distributors. The company's beta of 0.80 suggests lower volatility compared to the broader market, making it a noteworthy option for risk-averse investors. AIT's dividend yield of 0.61% provides a steady income stream.

Based on FMP financials and quantitative analysis

AIT Key Highlights

Market capitalization of $11.8B, reflecting a strong market presence.

• P/E ratio of 28.24, indicating investor confidence in future earnings.
• Profit margin of 8.3%, showcasing efficient cost management and profitability.
• Free cash flow of $0.31 billion, providing financial flexibility for strategic investments and acquisitions.
• Dividend yield of 0.61%, offering a steady income stream for investors.

Who Are AIT's Competitors?

AIT is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are AIT's Key Strengths?

Extensive distribution network.

• Diverse product portfolio.
• Value-added services.
• Strong customer relationships.

What Are AIT's Weaknesses?

Exposure to economic cyclicality.

• Dependence on industrial production.
• Competition from other distributors.
• Limited presence in emerging markets.

What Could Drive AIT Stock Higher?

Expansion of automation solutions to capitalize on growing demand.

• Strategic acquisitions to broaden product portfolio and geographic reach.
• Enhancement of e-commerce platform to drive sales growth and improve customer experience.
• Potential infrastructure spending initiatives by governments, boosting demand for industrial products.
• Focus on value-added services to enhance customer loyalty and recurring revenue.

What Are the Key Risks for AIT?

Insider selling — insiders were net sellers of roughly $3.4M recently.

• Economic downturns impacting industrial production and demand.
• Increased competition from other distributors and online retailers.
• Disruptions in supply chain affecting product availability and costs.
• Changes in government regulations impacting industrial operations.
• Fluctuations in commodity prices affecting input costs.

What Are the Growth Opportunities for AIT?

• Expansion of Automation Solutions: Applied Industrial Technologies can capitalize on the growing demand for automation solutions in manufacturing and logistics. The global industrial automation market is projected to reach $350 billion by 2027, offering significant growth potential. AIT can leverage its expertise in advanced automation products and technical support services to capture a larger share of this market. Timeline: Ongoing.
• Strategic Acquisitions: AIT can pursue strategic acquisitions to expand its product portfolio, geographic reach, and customer base. The industrial distribution sector is highly fragmented, providing opportunities for consolidation. AIT can target companies with complementary product lines or geographic presence to enhance its market position. Timeline: Ongoing.
• Enhancement of E-commerce Platform: Investing in and enhancing its e-commerce platform can drive sales growth and improve customer experience. The increasing adoption of online purchasing in the industrial sector presents a significant opportunity. AIT can leverage its digital capabilities to offer a wider range of products, improve order processing, and provide real-time inventory visibility. Timeline: Ongoing.
• Penetration of Emerging Markets: Expanding its presence in emerging markets, such as Southeast Asia and Latin America, can drive long-term growth. These markets offer significant growth potential due to increasing industrialization and infrastructure development. AIT can leverage its global distribution network and expertise to establish a foothold in these markets. Timeline: 3-5 years.
• Focus on Value-Added Services: Emphasizing value-added services, such as equipment repair, technical support, and training, can differentiate AIT from its competitors and enhance customer loyalty. These services provide a recurring revenue stream and strengthen customer relationships. AIT can invest in expanding its service capabilities and promoting its expertise to attract new customers. Timeline: Ongoing.

What Are AIT's Competitive Advantages?

• Extensive distribution network.
• Diverse product portfolio.
• Value-added services.
• Strong customer relationships.

What Does AIT Do?

Founded in 1923 as Bearings, Inc., Applied Industrial Technologies, Inc. has evolved into a prominent distributor of industrial motion, power, control, and automation technology solutions. Headquartered in Cleveland, Ohio, the company operates through two primary segments: Service Center Based Distribution and Fluid Power & Flow Control. The Service Center Based Distribution segment offers a wide array of products, including bearings, power transmission components, industrial rubber products, and safety supplies. The Fluid Power & Flow Control segment specializes in engineered fluid power components, specialty flow control solutions, and advanced automation products. AIT's extensive product range caters to the general operational needs of machinery and equipment across various industries, including agriculture, chemicals, fabricated metals, and oil and gas. The company also provides value-added services such as equipment repair, technical support, and fabricated rubber shops, enhancing its customer value proposition. With a network of service centers across North America, Australia, New Zealand, and Singapore, Applied Industrial Technologies serves a diverse customer base, including government entities. The company changed its name to Applied Industrial Technologies, Inc. in 1997, reflecting its expanded focus beyond bearings to a broader range of industrial solutions.

What Products and Services Does AIT Offer?

• Distributes industrial motion, power, control, and automation technology solutions.
• Offers bearings, power transmission products, and engineered fluid power components.
• Provides specialty flow control solutions and advanced automation products.
• Supplies industrial rubber products, linear motion components, and automation solutions.
• Offers tools, safety products, and oilfield supplies.
• Operates fabricated rubber shops and service field crews.
• Provides equipment repair and technical support services.

How Does AIT Make Money?

• Distributes industrial products through a network of service centers.
• Generates revenue through the sale of industrial products and related services.
• Provides value-added services such as equipment repair and technical support.
• Serves a diverse customer base across various industries.

What Industry Does AIT Operate In?

Applied Industrial Technologies operates in the industrial distribution sector, which is characterized by fragmented competition and cyclical demand. The industry is influenced by macroeconomic factors, such as industrial production, capital spending, and commodity prices. The increasing adoption of automation and digital technologies is driving growth in the sector. AIT competes with other distributors, manufacturers, and online retailers. The company's extensive product portfolio, value-added services, and geographic reach provide a competitive advantage. The industrial distribution market is expected to grow at a moderate pace, driven by infrastructure development and manufacturing expansion.

Who Are AIT's Key Customers?

• Agriculture and food processing companies.
• Chemicals and petrochemicals companies.
• Fabricated metals companies.
• Forest products companies.
• Industrial machinery and equipment manufacturers.

Company Profile

Applied Industrial Technologies, Inc. operates in the Industrial - Distribution industry within the Industrials sector. It is headquartered in Cleveland, US. The company is led by CEO Neil A. Schrimsher. AIT has traded publicly since 1980.

Applied Industrial Technologies, Inc. Financial Trajectory

Applied Industrial Technologies, Inc. (AIT) reported $1.35B in revenue for Q4 FY2026, reflecting 8.1% growth compared to the prior quarter. The company recorded net income of $118.6M, with diluted EPS of $3.13. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Industrials company. Across the four most recent quarters, AIT averaged $2.72 in diluted EPS.

How Applied Industrial Technologies, Inc. Is Valued

Applied Industrial Technologies, Inc. carries a market capitalization of $11.8B, placing it in the large-cap category. Analyst price targets span from $390.00 to $420.00, with a consensus of $402.00. At the current price of $318.58, that implies approximately 26% upside potential. Relative to its peer group, AIT's quantitative score of 89/100 is above the peer average of 60/100.

Return on equity for Applied Industrial Technologies, Inc. stands at 21.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 13.5%, showing how much profit it generates from its asset base. AIT trades at a trailing price-to-earnings ratio of 28.24, roughly in line with the Industrials sector average of ~28.00x. Its free cash flow yield is 3.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.95 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.5%, the inverse of the P/E and a quick read on earnings relative to price.

Applied Industrial Technologies, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 10.21 places it in the safe zone, indicating low near-term bankruptcy risk.

Applied Industrial Technologies, Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 5.3% above estimates on average.

Over the past six months, Applied Industrial Technologies, Inc. insiders filed 46 SEC Form 4 transactions — 21 sales and 25 purchases. On net that is roughly 12K shares acquired (about $3.4M) — insiders putting money in tends to read as conviction.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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