Applied Industrial Technologies, Inc. (AIT) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: Applied Industrial Technologies, Inc.

Market cap $11B · 52 weeks $241 – $362 (17 % below the high) · P/E 27.6× · 2027 expected P/E 25.0× · Dividend 0.66 % · 11 years rising · Next earnings January 26, 2027 · expected EPS $2.81 · Closing price, Oct 29 · accounts published Oct 27.

• Valuation: P/E 27.6× (expensive).
• Business: ROIC 18 % (solid).
• Balance sheet: Net debt/EBITDA 0.6× (solid).
• Earnings: 8 of 8 (on track).

What would it be worth at its usual multiples?

At the decade median (21.2×) $233 (-23 %); at its sector median (25.8×) $283 (-7 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in industrials: 6 of 10 pass

• Capex / Revenue 0.5 %, fails.
• P/E vs own 10y history 27.6×, fails.
• Cycle-adjusted EV/EBITDA 17.6×, fails.
• Operating margin 11.1 %, borderline.
• 5y revenue growth 9.7 %, passes.
• ROIC 17.6 %, passes.
• FCF conversion 111.1 %, passes.
• Net debt / EBITDA 0.6×, passes.
• Altman Z-Score 10.5, passes.
• Piotroski F-Score 8 de 9, passes.

Against its peers (reference peers) — Applied Industrial Technologies, Inc.: P/E 27.6×; EV/EBITDA 17.6×; ROIC 17.6 %; $11.1B. QXO, Inc. (P/E —; EV/EBITDA 39.9×; ROIC -1.1 %; $11.8B), Watsco, Inc. (P/E 26.6×; EV/EBITDA 16.4×; ROIC 12.6 %; $12.6B), WESCO International, Inc. (P/E 25.3×; EV/EBITDA 14.3×; ROIC 8.1 %; $17.9B).

Expensive or cheap against its last ten years?

P/E at each close: today 27.6× · median 21.2× · minimum 9.4× · maximum 35.3× · cheap below 18.5× · expensive above 26.3×. It has been cheaper than today 89% of the time over its last ten years.

Dividend

solid · Yield 0.66 % ($1.94 per share in 2026) · Years raising it ≥ 11 · 5-year growth +8 % a year · Free cash flow coverage 6.6× · With $1,000 invested today you'd collect $6.60 a year ($0.55 a month).