AITApplied Industrial Technologies, Inc.
Is the business good?
A genuinely good business: 8 of 9 health tests passed and earnings fully cash-backed (1.2×).
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
A balanced mix of margins, efficiency, and leverage. ROE 22% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AIT?
Applied Industrial Technologies, Inc. earns 22% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 13 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Industrial Distribution median 8.3% · 12 months to Q4 2026
- Cash conversion
- 1.16×
Cash conversion · 1.26× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 30%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 6.3% |
| FY2022 | 9.4% |
| FY2023 | 11% |
| FY2024 | 11% |
| FY2025 | 11% |
| FY2026 | 11% |
Details›
- Gross margin12 months to Q4 2026
- 30%
- Operating margin12 months to Q4 2026
- 11%
- Net margin12 months to Q4 2026
- 8.3%
- Free cash flow margin
- 9.3%
- Revenue, trailing twelve months
- $4.97B
- Free cash flow, trailing twelve months
- $461M
- Net income, trailing twelve months
- $415M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 22%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Industrial Distribution
Ranks #2 of 17 by RyuScore