Applied Industrial Technologies, Inc. logo AIT - Applied Industrial Technologies, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 11
HOLD 6
SELL 0
STRONG
SELL
0
| PRICE TARGET: $402.00 DETAILS
HIGH: $420.00
LOW: $390.00
MEDIAN: $400.00
CONSENSUS: $402.00
UPSIDE: 17.67%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

A- 83.1 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 25%
B+ 78.0
  • 5yr Avg ROIC 16.4% 83/100
  • Operating Margin Trend +0.35 pp/yr 66/100
Contributes 19.5 pts toward composite.

Capital Efficiency

Weight: 15%
A 89.1
  • 5yr Avg ROE 22.5% 96/100
  • 5yr Share-Count CAGR -0.7% 76/100
Contributes 13.4 pts toward composite.

Growth Quality

Weight: 25%
A 89.6
  • 5yr Revenue CAGR 8.9% 77/100
  • 5yr EPS CAGR 24.4% 99/100
  • Revenue-Growth Years (5) 5/5 100/100
Contributes 22.4 pts toward composite.

Cash Generation

Weight: 20%
B+ 76.5
  • 5yr FCF Margin 7.8% 61/100
  • 5yr FCF/NI Conversion 0.95x 95/100
Contributes 15.3 pts toward composite.

Balance Sheet

Weight: 10%
A+ 94.8
  • Net Debt / EBITDA 0.65x 89/100
  • Interest Coverage (EBIT/Int) 69.57x 100/100
  • Altman Z-Score 10.54 100/100
Contributes 9.5 pts toward composite.

Stability

Weight: 5%
C+ 59.0
  • EPS Volatility (σ/μ) 0.67 16/100
  • Negative-Revenue Years (5) 0/5 100/100
  • Piotroski F-Score 8 89/100
Contributes 3.0 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Trimming

4 of 4 gurus held; 1 added; 3 trimmed.

Holders
4
Avg Δ position
-27.0%
New buys
0
Full exits
0
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
  • Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (5%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.