Applied Industrial Technologies Inc.
References to we, us, our, and the Company refer to Applied and its subsidiaries. Headquartered in Cleveland, Ohio, Applied and its predecessor companies have engaged in business since 1923.
$338.89
+$8.09 (+2.45%)
Price from 2 days ago
11.06% operating margin is respectable but not wide. ROIC at 16.92%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 8.8%, steady but not accelerating.
At 31x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
30.9x earnings, 27.0x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$4.97B
▲ +8.8% YoY
Net Income (TTM)
$415M
▲ +5.5% YoY
Op. Margin
11.06%
▲ +0.1pp YoY
ROIC
16.92%
▲ +1.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$461M
▼ -1.0% YoY
Op. Cash Flow (TTM)
$484M
▼ -1.7% YoY
Net Debt
$356M
Cash & Equiv.
$127M
5Y CAGR: +8.9%
5Y CAGR: +15.3%
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SourceComputed from the 10-Q filed 31 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 21 Sept 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Jun. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Applied Industrial Technologies (AIT) overvalued?
At a P/E of 30.9 and a price-to-free-cash-flow of 27.0, Applied Industrial Technologies (AIT) trades below a two-stage DCF intrinsic value of about $604.64 per share, so at $338.89 the stock looks undervalued (78.4% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Applied Industrial Technologies scores 70/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.6%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Applied Industrial Technologies's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $604.64 per share for AIT, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $453.48. At today's $338.89, that puts the stock about 78.4% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Applied Industrial Technologies a high-quality business?+
Applied Industrial Technologies scores 70 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 11.1% operating margin and a 16.9% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Applied Industrial Technologies (AIT) pay a dividend, and how much?+
Yes, Applied Industrial Technologies pays a regular dividend of about $1.92 per share per year (typically in quarterly installments), a yield of roughly 0.6% at the current price. That is a payout ratio of about 17.5% of earnings, so the dividend is amply covered by earnings. Applied Industrial Technologies has grown the dividend at roughly 8.8% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For AIT's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Applied Industrial Technologies a good stock to buy right now?+
That depends on valuation and quality together, not either alone. AIT currently trades below its estimated intrinsic value and scores 70/100 on quality (solid). It also yields about 0.6%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Wholesale-Machinery, Equipment & Supplies
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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