Applied Industrial Technologies, Inc. (AIT) AI Stock Analysis

Applied Industrial Technologies, Inc. specializes in distributing industrial motion, power, control, and automation technology solutions across North America, Australia, New Zealand, and Singapore. The business is organized into two primary operating units: Service Center Based Distribution and Fluid Power & Flow Control. Its distribution division supplies bearings, power transmission parts, specialty flow control products, linear motion hardware, safety equipment, and machinery maintenance tools. Its fluid power division delivers motors, drives, belting, pumps, hydraulic and pneumatic components, filtration supplies, and actuators. The company caters to clients across agriculture, food processing, chemicals, petrochemicals, mining, utilities, and oil and gas.

Revenue increased from $3.81B in FY2022 to $4.97B in FY2026, representing a 5-year CAGR of 8.9% from FY2021 to FY2026. Gross margin expanded from 29.0% in FY2022 to 30.3% in FY2026, while operating margin rose from 9.4% to 11.1% over the same period. Net income expanded from $257.4M in FY2022 to $414.5M in FY2026, resulting in a net margin of 8.3%. For the latest quarter ended June 30, 2026, quarterly revenue grew 10.4% year-over-year, and quarterly earnings grew 13.4% year-over-year.

As of June 30, 2026, the company held $127.1M in cash and short-term investments against total debt of $483.4M, resulting in net debt of $356.3M. Total assets stood at $3.01B, shareholders' equity was $1.86B, and the current ratio was 2.58 with a debt-to-equity ratio of 0.26. In FY2026, operating cash flow reached $484.1M and capital expenditures were $23.6M, yielding $460.5M in free cash flow. Capital allocation in FY2026 included $317.2M in share buybacks and $72.6M in dividends paid, contributing to a 5-year share count change of -3.2%.

At a share price of $330.48, Applied Industrial Technologies has a market capitalization of $12.14B and an enterprise value of $12.38B. The stock trades at a trailing P/E of 30.2x and a forward P/E of 27.8x, both above the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its EV/EBITDA multiple is 19.7x versus the peer median of 13.9x, and its price-to-sales ratio is 2.4x compared to the peer median of 1.5x. Over the past year, the stock returned 35.9%, outperforming the S&P 500 (SPY) return of 16.8%, while its 5-year return reached 262.1% against 83.0% for SPY.

Applied Industrial Technologies pays a forward annual dividend of $2.04 per share, translating to a dividend yield of 0.62%. The dividend is paid quarterly with a payout ratio of 18.2%. The company has paid dividends for 42 consecutive years and generated a 5-year annualized dividend growth rate of 7.5%. The last ex-dividend date was August 14, 2026.

Wall Street coverage consists of 6 Strong Buy and 2 Hold ratings, with no Buy, Sell, or Strong Sell recommendations. The mean price target is $398.33, representing a 20.5% premium to the last close of $330.48. For the current fiscal year ending June 30, 2027, consensus estimates forecast revenue of $5.26B and EPS of $12.03, reflecting 9.9% EPS growth. In FY2028, 7 analysts project revenue of $5.57B and EPS of $13.20. The company beat EPS estimates in 3 of the last 4 quarters, with the next earnings date scheduled for October 27, 2026.

This page is an AI-written research summary of Applied Industrial Technologies, Inc. (AIT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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