AIT
APPLIED INDUSTRIAL TECHNOLOGIES INC
Next earnings Aug 12, 2026 (before open) · consensus $2.95 EPS, $1.31B rev
Last earnings +1.1% on 2026-04-28
$330.85
▼ -0.99%$330.85▲ +43.80%
over 1Y
L $230.08H $343.54
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today-1.0%
1W-3.7%
1M+7.3%
3M+24.1%
YTD+27.9%
1Y+43.8%
Hold
Conviction
Horizon
Long (>12mo)
Street · 12 analysts
Buy
Best-in-class industrial distributor with 21% ROE, but 2% revenue growth doesn't justify a 33x multiple.
Revenue (FY2025) $4.56B · FY2025
The read
Middling fundamentals and a rich price (~62% above fair value) leave little margin of safety — a wait-and-see.
Applied Industrial Technologies is a high-quality industrial distributor of bearings, power transmission, fluid power and automation products. The franchise quality shows in the returns: a 21.3% ROE, 30.3% gross margin and 10.9% operating margin, all on a capital-light distribution model that needed just $27.2M of capex. The balance sheet is pristine — $1.84B equity, only $572M of long-term debt, a conservative 0.72x liabilities/equity ratio, and zero current debt. Cash generation is excellent: operating cash flow jumped 32.6% to $492M, easily funding $153M of buybacks (up 108.3%) and a $63.7M dividend (up 14.0%) while shrinking the share count.
The issue is growth versus price. After a strong multi-year run (net income from $145M in FY2021 to $393M in FY2025), the business has clearly slowed: FY2025 revenue rose just 1.9% to $4.56B, net income rose 1.9% to $393M, operating income was essentially flat (+0.5%), and EPS grew only 3.0% to $10.12 — much of that from buybacks rather than organic expansion. This is now a low-single-digit grower benefiting from share-count reduction, not the double-digit compounder of recent years.
Is AIT a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~90d expiry
- Long 100 shares @ ~330.85
- Short call 345 @ ~11.65 est
debit $31,920max +$2,580max −$31,919BE 319.20
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $3.24B | $3.81B | $4.41B | $4.48B | $4.56B |
| Gross profit | $936M | $1.11B | $1.29B | $1.34B | $1.38B |
| Operating income | $205M | $358M | $473M | $496M | $499M |
| Net income | $145M | $257M | $347M | $386M | $393M |
| Diluted EPS | $3.68 | $6.58 | $8.84 | $9.83 | $10.12 |
| Net margin | 4.5% | 6.8% | 7.9% | 8.6% | 8.6% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$12.4B
EV / EBITDA—
EV / Sales2.7
EV / FCF26.7
P / FCF26.3
PEG (trailing)17.45
Earnings yield3.2%
FCF yield3.8%
Quality & risk
ROIC (est.)16.3%
Free cash flow$465M
Total debt$572M
Net cash-$184M
Altman Z-Score9.01 safe
Piotroski F-Score6/9
Capital returns
Buyback yield1.2%
Dividend yield (est.)0.5%
Shareholder yield1.8%
Shares Δ YoY-1.6%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRed flag in recent filings — agreement terminated (2025-10-24). Worth a closer look.
Recent filings
all on EDGAR ↗4Period ending 2026-06-302026-07-01open ↗8-KPeriod ending 2026-06-222026-06-25open ↗4Period ending 2026-06-182026-06-22open ↗11-KPeriod ending 2025-12-312026-06-16open ↗SDFiling2026-05-29open ↗4Period ending 2026-05-052026-05-06open ↗144Filing2026-05-05open ↗SCHEDULE 13GFiling2026-04-29open ↗4Period ending 2026-04-242026-04-28open ↗SCHEDULE 13GFiling2026-04-28open ↗10-QPeriod ending 2026-03-312026-04-28open ↗8-KPeriod ending 2026-04-282026-04-28open ↗
Frequently asked
- Is APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) a buy?
- AIT currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Best-in-class industrial distributor with 21% ROE, but 2% revenue growth doesn't justify a 33x multiple.
- What is AIT's fair value?
- A Modified-Graham model based on AIT's SEC fundamentals estimates a fair value of about $125.92. It is an estimate from reported earnings, not a price target.
- Is AIT overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, AIT currently appears overvalued relative to its SEC-grounded earnings power.
- What is APPLIED INDUSTRIAL TECHNOLOGIES INC's quality score?
- AIT scores 68.75031409740005/100 (grade B-) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0000109563, latest 10-Q filed 2026-04-28) · EODHD · Proprietary analysis · as of 6/21/2026, 8:46:35 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 4:46 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.