Quality Investor
MarketsPortfolioAbout 

Applied Industrial Technologies, Inc.

Rank #82Capital Return

AIT · NYSE · Industrials

Applied Industrial Technologies, Inc. (AIT) — Rank #82 by gross profitability (GP/assets 0.50) · ROE 22.3% · Piotroski F-Score 8 / 9.

As-of 2026-09-28 · CIK 0000109563 · all metrics point-in-time as of the filing date.

About

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.

Show more

It operates in two segments, Service Center and Engineered Solutions. The Service Center segment distributes industrial bearings, power transmission, fluid power components and systems, specialty flow control, and advanced factory automation solutions, as well as general maintenance products; and motors, belting, drives, couplings, pumps, linear motion, hydraulic and pneumatic components, filtration supplies, hoses, and other related supplies. It also installs, modifies, and repairs conveyor belts and rubber linings, as well as hose assemblies. The Engineered Solutions segment is involved in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, engineered flow control products and services, and automation technologies; and provision of fluid power and industrial flow control products. Its fluid power products and solutions are used in off-highway mobile equipment, stationary industrial equipment and machines, marine and offshore equipment, factory automation, food processing equipment, packaging operations, and downstream energy process systems. This segment also offers pumps, valves, fittings, hoses, process instrumentation, actuators, and filtration supplies; and advanced automation technologies for the design, engineering, assembly, integration, and distribution of machine vision, collaborative robots, mobile robots, radio-frequency identification, industrial networking, motion control, and machine learning technologies for OEMs, machine builders, integrators, and other industrial and technology sectors. The company was formerly known as Bearings, Inc. and changed its name to Applied Industrial Technologies, Inc. in 1997.

The company was founded in 1923 and is headquartered in Cleveland, Ohio.

Industry
Industrial Distribution
Sector
Industrials
State
OH
Filer Category
Large accelerated filer
Fiscal Year End
June 30

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

6,900

Industry

Industrial Distribution

Exchange

NYSE

Signal Flags

3 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.50
Return on equity
22.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.62
Current ratio
2.58×
Net cash
$138.42M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.3%

Growth

2/2 pass
Revenue growth
8.8%
Piotroski F-Score
8 / 9
Share dilution
-2.5%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.50

Primary signal (Novy-Marx).

2nd of 8 SIC 50 peers

Return on equity

22.3%

Gross margin

30.3%

5th of 8 SIC 50 peers

Revenue growth (YoY)

8.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

4.0%

Revenue CAGR (5Y)

8.9%

Earnings CAGR (3Y)

6.1%

FCF CAGR (3Y)

13.2%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.62

3rd of 8 SIC 50 peers (best = lowest)

Current ratio

2.58×

3rd of 8 SIC 50 peers

Quick ratio

2.04×

Net cash

$138.42M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 18 years of history

Moderate
2008-2009 (GFC)
N/AN/A
2020 (COVID)
-6.5%Mild decline
Worst year on record(any fiscal year, not recession-limited)
-99.1%Significant decline

Cash-flow health

Free cash flow

$460.52M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.11

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.3%

Stock-based comp intensity.

Dividend safety

Composite score

4.2 / 5

Strong
Payout ratio
17.5%5/5 Strong
FCF coverage
6.34×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.62 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Value
Capital Return
View full financial statements →