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Why the quality investor may take a look at APPLIED INDUSTRIAL TECH INC (NYSE:AIT).

By Mill Chart

Last update: Sep 14, 2023

In this article we will dive into APPLIED INDUSTRIAL TECH INC (NYSE:AIT) as a possible candidate for quality investing. Investors should always do their own research, but we noticed APPLIED INDUSTRIAL TECH INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of APPLIED INDUSTRIAL TECH INC

  • Over the past 5 years, APPLIED INDUSTRIAL TECH INC has experienced impressive revenue growth, with 7.5% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • APPLIED INDUSTRIAL TECH INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 35.12% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a Debt/Free Cash Flow Ratio of 1.96, APPLIED INDUSTRIAL TECH INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a robust Profit Quality (5-year) ratio of 316.0%, APPLIED INDUSTRIAL TECH INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • APPLIED INDUSTRIAL TECH INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 15.95%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • APPLIED INDUSTRIAL TECH INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NYSE:AIT

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to AIT. AIT was compared to 52 industry peers in the Trading Companies & Distributors industry. AIT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AIT has a expensive valuation and it also scores bad on growth.

For an up to date full fundamental analysis you can check the fundamental report of AIT

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.