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AIT

Applied Industrial Technologies, Inc.
$330.80
-0.90% Oct 20 close
IndustrialsS&P 400 Compare
1M3M6M1Y2Y
-5%+8%+20%+33%+46%Oct 2025Oct 2026Apr 2026
AITSPY
1W
-0.6%
1M
+2.8%
3M
-2.9%
6M
+13.0%
YTD
+29.5%
1Y
+33.4%

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What they do

Applied Industrial Technologies, Inc. distributes industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies in the United States, Canada, Mexico, Australia, New Zealand, Singapore, and Costa Rica. It operates in two segments, Service Center and Engineered Solutions. The Service Center segment distributes industrial bearings, power transmission, fluid power components and systems.

Industrials · Industrial Distribution

For information only · Important disclosures

Grades vs sector

Momentum
75th percentile in sector
B+
12-1 return: +30.1%
Percentile within its GICS sector across the S&P 1500.
Growth
54th percentile in sector
C+
Revenue growth (YoY): +10.4%
Percentile within its GICS sector across the S&P 1500.
Value
20th percentile in sector
D
Forward E/P: 4.0% · EBITDA/EV: 4.9%
Percentile within its GICS sector across the S&P 1500.
Profitability
60th percentile in sector
B-
Profit margin: +8.3% · Return on equity: +22.4%
Percentile within its GICS sector across the S&P 1500.
Revisions
Not enough data yet
–
EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Not held by any of our 5 live models right now.

Quality Growth
Outside this model's universe or screens
 Momentum Top 15
Outside this model's universe or screens
 Momentum Blend
Not in the current book
 New Highs Growth
Outside this model's universe or screens
 Coteau Long Book
Not in the current book

News

More news
Applied Industrial (AIT): Buy, Sell, or Hold Post Q2 Earnings?
StockStory · Oct 19

Key stats

Market value$12.4B
P/E (last 12 months)30.9
P/E (next 12 months, estimated)25.7
52-week range$238.72 – $374.80
Revenue growth (latest quarter vs a year ago)+10.4%
Dividend yield0.62%
Analyst consensusStrong Buy (6)
Average analyst price target$398.33 (+20%)
Valuation and fundamentals

Valuation & fundamentals

Bottom line
Leans undervalued
Model read-out from the numbers below, not advice. Score +1 (DCF counts double).
•DCF (base case)below the price by 15%
▼Forward P/E vs sector25.7x vs median 17.1x
▲Piotroski F-score8/9
▲Altman Z10.4 (safe)
▲Net debt / EBITDA0.3x
▲Analyst target+20% (6 analysts)

Discounted cash flow

Bear
$172
-48%
growth 2% · disc. 9.5% · term. 2.0%
Base
$282
-15%
growth 7% · disc. 8.5% · term. 2.5%
Bull
$444
+34%
growth 10% · disc. 7.5% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal
Today's price assumes free cash flow grows about 8% a year for 10 years.
Implied
+8%/yr
FCF, last 3 yrs
+12%/yr
FCF, last 5 yrs
+15%/yr
Revenue, last 3 yrs
+4%/yr
Revenue, last 5 yrs
+9%/yr
Same inputs as the DCF above: trailing free cash flow 0.5B, 8.5% discount rate, 2.5% growth after year 10, net debt and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2026; "n/a" means too little history or a negative starting year.
Edit assumptions · recalculates instantly
Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (FY to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 0.85 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Industrials

P/E (trailing)
sector median 26.4× · 63rd pct
 30.9×
pricier
Forward P/E
sector median 17.1× · 84th pct
 25.7×
pricier
EV / EBITDA
sector median 14.8× · 85th pct
 23.0×
pricier
Price / sales
sector median 2.1× · 56th pct
 2.5×
pricier
Price / book
sector median 3.5× · 75th pct
 6.7×
pricier
FCF yield
sector median 4.5% · 40th pct
 3.9%
pricier

Forward EPS $13.20 vs trailing $10.95 (+21% expected growth). Forward P/E uses analysts' next-12-month estimate.

Quality & financial health

Gross margin
30.3%
Operating margin
11.1%
FCF margin
9.7%
Net margin
8.3%
Return on equity
22.3%
Return on invested capital
20.5%
Net debt / EBITDA
0.3×
Current ratio
2.6×
Interest cover
31.6×
Cash conversion (OCF/NI)
1.2×
Piotroski F-score 8/9 · last two fiscal years
✓ Positive net income✓ Positive operating cash flow✓ Return on assets improved✓ Cash flow above net income✓ Long-term debt / assets fell✗ Current ratio improved✓ No share dilution✓ Gross margin improved✓ Asset turnover improved

Altman Z-score 10.4 (safe zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target
$398
+20%
Analysts
6
Strong Buy
Range
$390–$420
low – high
● price · ◆ mean target

Annual history

FYRevenueNet incomeFree cash flow
2026$5.0B$414.5M$484.1M
2025$4.6B$393.0M$492.4M
2024$4.5B$385.8M$371.4M
2023$4.4B$346.7M$344.0M
2022$3.8B$257.4M$187.6M
2021$3.2B$144.8M$241.7M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +4.0%.

Earnings

Next report: 2026-10-27 · before open · EPS est 2.89
24-1025-0125-0525-0825-1026-0126-0426-080.003.17
EstimateActual (beat)Actual (miss)
ReportEPS estActualSurprise
2026-08-132.923.17+8.7%
2026-04-282.652.65+0.2%
2026-01-272.502.51+0.6%
2025-10-282.482.63+5.9%
2025-08-142.632.80+6.7%
2025-05-012.412.57+6.6%
2025-01-292.212.39+8.0%
2024-10-242.262.36+4.2%

Quarterly revenue

QuarterRevenueYoY
2026-06-30$1.4B+10.4%
2026-03-31$1.3B–
2025-12-31$1.2B–
2025-09-30$1.2B–
2025-06-30$1.2B–
Analyst actions
Mizuho
2026-10-15 · main
Outperform → Outperform
PT $390
B of A Securities
2026-08-14 · main
Buy → Buy
PT $390
Oppenheimer
2026-08-14 · main
Outperform → Outperform
PT $390
DA Davidson
2026-08-14 · main
Buy → Buy
PT $400
Keybanc
2026-08-14 · main
Overweight → Overweight
PT $420
Baird
2026-08-14 · main
Outperform → Outperform
PT $400

Recent dividends

2026-08-14: $0.510 · 2026-05-15: $0.510 · 2026-02-13: $0.510 · 2025-11-14: $0.460 · 2025-08-15: $0.460 · 2025-05-15: $0.460 · 2025-02-14: $0.460 · 2024-11-15: $0.370
Insider trades
Wallace Peter C
Director · 2026-08-26
Sell
$648.2K
Wells David K.
Vice President-CFO & Treasurer · 2026-08-18
Sell
$643.4K
None
None · None
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Sell
–

Stats refreshed 2026-10-21 18:01:46 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

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Independent research · Not investment advice · Important disclosures · Contact desk@coteau.app

Coteau Systematic Strategies publishes stock research and model portfolios. Results are hypothetical unless marked Live. Data: Yahoo Finance (15-min delayed), SEC EDGAR and the House Clerk.

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