Industrials · NYSE/NASDAQ: AIT

APPLIED INDUSTRIAL TECHNOLOGIES INC

Industrial Distribution
Market Cap $11.69B
Verdict: Exceptional

Quality Scores

Multi-Bagger
84/100
Compounder Quality
92/100
Management Credibility
93/100
Governance
96/100
Cash Flow Quality
98/100

AI Summary

Applied Industrial Technologies (AIT) has transformed from a traditional bearings distributor into a high-value industrial solutions provider, evidenced by a dramatic expansion in profitability. Despite a COVID-related dip in 2020, net income blossomed from $134M in 2017 to $393M by 2025, representing a robust triple-digit growth trajectory. The company maintains a lean balance sheet while aggressively scaling its technical capabilities in fluid power and automation. Equity has more than doubled since 2018, rising from $815M to $1.84B, providing a massive cushion for future expansion. AIT…

Top Opportunities

  • Significant operating margin expansion from 4.1% to 11.1%
  • Exceptional Net Income CAGR over 5 and 10 years
  • Cash Flow from Operations (CFO) consistently exceeds Net Income

Top Risks

  • Historical vulnerability to industrial downturns (see 2020)
  • High competitive intensity in wholesale machinery sector
  • Incomplete data on long-term debt levels in certain periods

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