Bull Rankings model

Applied Industrial Technologies, Inc. (AIT) stock analysis

Industrial Distribution. Scored on the same transparent model behind the daily rankings.

★
AIT
Applied Industrial Technologies, Inc. · Industrial Distribution
65.9Score
$335.38Oct 9 close$12.3B
1Y Target$400.00Analyst consensus · 6 analysts
5Y Target$585.64Compound horizon
10Y Target$868.76Long-dated conviction
FCF$461mTTM · 06/26
C
FCF $461m — modest; watch for margin expansion · Trailing twelve months to 06/26 (operating cash flow − capex).
Rev+8.8%FY YoY
B
Revenue +8.8% — at or above S&P median · Computed from the last two annual revenue figures (FY YoY).
D/E0.26
A-
D/E 0.26 — less debt than most Industrials peers (≈25th pctile)
P/E30.6x
C+
P/E 30.6 — above the Industrials median (≈75th pctile)
PEG2.77
C
PEG 2.77 — expensive relative to growth rate

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Quality-growth score · 65.9
Quality84.8
Growth70.2
Value48.0
Why this score
  • Buying back stock
  • Raising its dividend
  • Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
11% off the 12-month high
vs DCF fair value42% aboveest. fair value ~$236
What the price assumes: free cash flow growing about 15% next year, slowing to 4% a year by year ten — vs a starting rate of ~9% our model takes as the middle of three readings — analyst estimates, last year's revenue growth, and the company's own multi-year record.

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Industrial Distribution · market cap $12.3b. 11% off the 52-week high of $374.80. 6 sell-side analysts publish a mean 1-yr target of $400.00 (implying +19% upside).
Moat
ROE 22% is above 15% — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 111% of net income — earnings translate cleanly into cash.
Risk
Trailing P/E 31x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon
1-3 yr $400.00 (6-analyst consensus) — fundamentals + valuation re-rating. 5 yr $585.64 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $868.76 if current growth sustains into durable earnings power.

AIT vs the Top Picks average

PillarAITBook avgDiff
Quality8583+2
Growth7089-19
Value4876-28

Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.

Trend
+17.2 over 81 daily scores
From 48.7 (Jun 22) → 65.9 (now)

One point per daily run; read From → To for the actual range.

AIT at a glance

THE BULL RANKINGS SCORECARD65.9/ 100 · BULL SCOREPEER MEDIANQUALITY84.8GROWTH70.2VALUE48.0Reverse-DCF · Price implies ~15% growth a year from here.
PRICE vs OUR DCF FAIR VALUE$221$261FAIR-VALUE RANGE$335PRICEOur DCF fair value ~$236 · price $335 is 42% above it.
ONE-YEAR MOVE VS ITS BETAFLATThis stock+35%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.
WHERE THIS SCORE SITS0255075100AIT 65.9Top 16% of 1,709 companies on the quality-growth score.

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change+0.0%
90-day change+12.3%
Forward EPS estimate$13.23

Over the last 90 days, what analysts expect AIT to earn is materially higher (+12.3%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
5
Position size
$1,677
3.4% of portfolio
Stop price
$251.53
25% below $335.38
$ at risk if stopped
$419.23
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

Applied Industrial Technologies, Inc. (AIT): score, valuation & FAQ

Applied Industrial Technologies, Inc. (AIT) is an Industrial Distribution company that scores 65.9 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A-). On valuation, AIT sits about 42% above our discounted-cash-flow fair value — the current price implies free cash flow growing about 15% next year, slowing to 4% a year by year ten.

Is AIT a good stock to buy?

Bull Rankings scores AIT 65.9 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by D/E (A-). A score is a quantitative screen of Applied Industrial Technologies, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does AIT score 65.9 on Bull Rankings?

The score leans on quality at 84.8 out of 100, with value the weakest pillar at 48.0 — the three combine geometrically, so a weak one cannot be papered over by a strong one. AIT earns its highest marks on D/E (A-). Each signal is graded against sector-aware thresholds rather than one absolute bar, so AIT is measured against Industrial Distribution peers, not against the market as a whole.

Is AIT overvalued or undervalued?

Based on $335.38, AIT sits about 42% above our discounted-cash-flow fair value — the current price implies free cash flow growing about 15% next year, slowing to 4% a year by year ten. It trades at a 30.6x P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in AIT?

Trailing P/E 31x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.

New to these metrics? See the guides and the methodology.

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