Applied Industrial Technologies Inc. Common Stock (AIT)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Applied Industrial Technologies is a steady industrial distributor—motion, fluid power, flow control, automation—with 6,900 employees and two segments. It isn't glamorous, but the filed record is respectable. In fiscal 2026, the year ended 2026-06-30, revenue was $5.0B, net income $414.5M, and diluted EPS $10.95. That compares with $4.6B revenue, $393.0M net income, and $10.12 EPS in fiscal 2025, the year ended 2025-06-30, and $4.5B revenue, $385.8M net income, and $9.83 EPS in fiscal 2024, the year ended 2024-06-30. Sales and earnings have moved forward, though the latest profit-growth figure is roughly flat. The balance sheet is conservative: debt-to-equity is 0.26, Altman Z-Score is 8.69, and Piotroski is 7/9. Returns are good—ROE 22.37%—but ROCE 11.10% reminds me this is a capital-using distribution business, not a royalty on a brand. The FairStock Lynch category is STALWART, based on 23.4% annual profit growth over five years and 8.9% revenue growth. The moat, if any, comes from scale, product breadth, technical service, and entrenched customer relationships, but distribution is competitive. Valuation is the rub. At the 2026-10-13 close of $332.85, the FairStock P/E is 30.43, P/B is 6.76, EV/EBITDA is 19.68, and FCF yield is only 3.8%. The Graham Number is $111.59, leaving a margin of safety of negative 198.28%. I like the business; I do not like paying that much for it.

In plain English: Applied Industrial Technologies sells parts and supplies like bearings, fluid power, and automation equipment to factories and other businesses in several countries. The company looks financially solid: it earns good profits, uses little debt, and has grown sales and earnings over the past few years. But the stock price looks high compared with those profits and cash flow, so buyers are paying a rich price for a steady business.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer