📊 AIT Key Takeaways
Is Applied Industrial Technologies Inc. (AIT) a Good Investment?
Strong balance sheet with exceptional liquidity (2.95x current ratio, 0.19x D/E), solid profitability (8.2% net margin), and robust free cash flow generation ($300.8M) provide financial stability. However, the anomalous 745,757% YoY revenue growth sharply inconsistent with 3% EPS growth raises concerns about earnings quality and growth sustainability.
Applied Industrial Technologies shows solid fundamental quality, with healthy margins, strong free cash flow generation, and a conservative balance sheet supported by high liquidity and modest leverage. Financial health appears strong, but the extreme reported revenue growth rate looks anomalous, so the key question is whether underlying organic growth and margin durability remain as strong as the current snapshot suggests.
Applied Industrial Technologies Inc. Key Strengths (AIT)
- Exceptional financial leverage control with 0.19x debt-to-equity ratio and 21.4x interest coverage
- Outstanding liquidity position with 2.95x current ratio and 1.97x quick ratio
- Solid profitability fundamentals with 8.2% net margin, 10.8% operating margin, and healthy ROE of 15.9%
- Strong profitability profile with 30.3% gross margin, 10.7% operating margin, and 8.3% net margin
- Excellent balance sheet quality, including 3.68x current ratio, 2.56x quick ratio, and low 0.31x debt-to-equity
- Good cash generation with $205.40M free cash flow, 8.7% FCF margin, and 13.8x interest coverage
AIT Stock Risks: Applied Industrial Technologies Inc. Investment Risks
- Anomalous 745,757% YoY revenue growth disconnected from 3% EPS growth suggests one-time event or data irregularity that questions earnings quality
- Minimal capital expenditure ($18.3M on $3.6B revenue, 0.5% ratio) may indicate underinvestment in organic growth capacity
- Revenue growth trajectory sustainability uncertain given inconsistency with earnings per share progression
- Reported revenue growth appears distorted or low-quality based on the extreme YoY figure, raising data reliability and growth-quality concerns
- ROE of 10.5% and net income growth of 1.9% suggest returns and earnings growth are solid but not exceptional
- Wholesale and industrial demand can be cyclical, which could pressure margins and cash flow if end-market conditions weaken
Key Metrics to Watch
- Quarterly revenue growth rates to determine if 745k% increase was one-time event or reflects ongoing trend
- Operating margin and net margin consistency to validate profitability sustainability
- Free cash flow conversion rate and capital allocation efficiency going forward
- Organic revenue growth and gross/operating margin stability
- Free cash flow conversion and changes in debt levels or working capital
Applied Industrial Technologies Inc. (AIT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.95x current ratio provides a solid financial cushion.
AIT Profit Margin, ROE & Profitability Analysis
AIT vs Industrial Sector: How Applied Industrial Technologies Inc. Compares
How Applied Industrial Technologies Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Applied Industrial Technologies Inc. Stock Overvalued? AIT Valuation Analysis 2026
Based on fundamental analysis, Applied Industrial Technologies Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Applied Industrial Technologies Inc. Balance Sheet: AIT Debt, Cash & Liquidity
AIT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Applied Industrial Technologies Inc.'s revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.84 reflects profitable operations.
AIT Revenue Growth, EPS Growth & YoY Performance
AIT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.2B | $99.8M | $2.57 |
| Q2 2026 | $1.1B | $93.3M | $2.39 |
| Q1 2026 | $1.1B | $92.1M | $2.36 |
| Q3 2025 | $1.1B | $91.2M | $2.48 |
| Q2 2025 | $1.1B | $91.2M | $2.32 |
| Q1 2025 | $1.1B | $92.1M | $2.36 |
| Q3 2024 | $1.1B | $76.9M | $2.47 |
| Q2 2024 | $1.1B | $76.9M | $2.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Applied Industrial Technologies Inc. Dividends, Buybacks & Capital Allocation
AIT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Applied Industrial Technologies Inc. (CIK: 0000109563)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AIT
What is the AI rating for AIT?
Applied Industrial Technologies Inc. (AIT) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AIT's key strengths?
Claude: Exceptional financial leverage control with 0.19x debt-to-equity ratio and 21.4x interest coverage. Outstanding liquidity position with 2.95x current ratio and 1.97x quick ratio. ChatGPT: Strong profitability profile with 30.3% gross margin, 10.7% operating margin, and 8.3% net margin. Excellent balance sheet quality, including 3.68x current ratio, 2.56x quick ratio, and low 0.31x debt-to-equity.
What are the risks of investing in AIT?
Claude: Anomalous 745,757% YoY revenue growth disconnected from 3% EPS growth suggests one-time event or data irregularity that questions earnings quality. Minimal capital expenditure ($18.3M on $3.6B revenue, 0.5% ratio) may indicate underinvestment in organic growth capacity. ChatGPT: Reported revenue growth appears distorted or low-quality based on the extreme YoY figure, raising data reliability and growth-quality concerns. ROE of 10.5% and net income growth of 1.9% suggest returns and earnings growth are solid but not exceptional.
What is AIT's revenue and growth?
Applied Industrial Technologies Inc. reported revenue of $3.6B.
Does AIT pay dividends?
Applied Industrial Technologies Inc. pays dividends, with $53.7M distributed to shareholders in the trailing twelve months.
Where can I find AIT SEC filings?
Official SEC filings for Applied Industrial Technologies Inc. (CIK: 0000109563) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AIT's EPS?
Applied Industrial Technologies Inc. has a diluted EPS of $7.79.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AIT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Applied Industrial Technologies Inc. has a A grade with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AIT stock overvalued or undervalued?
Valuation metrics for AIT: ROE of 15.9% (sector avg: 15%), net margin of 8.2% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
What is AIT's AI grade for 2026?
Our dual AI analysis gives Applied Industrial Technologies Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AIT's free cash flow?
Applied Industrial Technologies Inc.'s operating cash flow is $319.1M, with capital expenditures of $18.3M. FCF margin is 8.3%.
How does AIT compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 8.2% (avg: 10%), ROE 15.9% (avg: 15%), current ratio 2.95 (avg: 1.8).