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Is NYSE:AIT suited for quality investing?

By Mill Chart

Last update: May 9, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if APPLIED INDUSTRIAL TECH INC (NYSE:AIT) is suited for quality investing. Investors should of course do their own research, but we spotted APPLIED INDUSTRIAL TECH INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NYSE:AIT.

  • 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.
  • The ROIC excluding cash and goodwill of APPLIED INDUSTRIAL TECH INC stands at 33.46%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • APPLIED INDUSTRIAL TECH INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.46, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • The Profit Quality (5-year) of APPLIED INDUSTRIAL TECH INC stands at 316.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • The 5-year EBIT growth of APPLIED INDUSTRIAL TECH INC has been remarkable, with 15.95% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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.

How does the complete fundamental picture look for NYSE:AIT?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, AIT scores 6 out of 10 in our fundamental rating. AIT was compared to 51 industry peers in the Trading Companies & Distributors industry. AIT gets an excellent profitability rating and is at the same time showing great financial health properties. AIT has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of AIT for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

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.