| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 35 | 29.5x | 17.8x | Bottom tier | |
Growth | 55 | 8.8% | 7.1% | Around median | |
Quality | 76 | 16.9% | 4.5% | Top tier | |
Safety | 90 | 0.6x | 2.6x | Top tier | |
Capital Return | 61 | 0.59% | 2.12% | Around median | |
Momentum | 80 | 34.7% | 2.9% | Top tier | |
Sentiment | 42 | 6 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Applied Industrial Technologies operates in industrial distribution and technical solutions through two main segments: Service Center Based Distribution and Engineered Solutions. Service centers serve maintenance, repair, and operations needs and provide technical sales, while the Engineered Solutions segment provides automation, fluid power systems, and flow control, including robotics, machine vision, digital solutions, and pump and valve services; therefore, revenue depends on factory activity, capital spending, and industrial system modernization projects.
In fiscal 2026, the company recorded revenue of $5.0 billion, gross profit of $1.5 billion, net income of $414.5 million, and earnings per share of $10.95. In Q4 fiscal 2026, revenue reached $1.4 billion, gross profit was $411.2 million, and net income was $118.6 million, while management reported a gross margin of 30.4% and an EBITDA margin of 13.1%.
Q4 fiscal 2026 sales increased 10.4% year over year, including 9.7% organic growth and approximately 7% volume growth, while pricing added nearly 250 basis points. The Engineered Solutions segment led performance with 12.9% organic growth and a 15.1% margin, compared with 7.9% organic growth and a 14.5% margin in the Service Center Based Distribution segment; reported quarterly earnings per share also increased 13.2% to $3.17.
The analyst consensus is “Buy,” with an average price target of $402, within a range of $390 to $420. The average is approximately 7% above the 52-week range high of $374.80, while the highest target is approximately 12% above it, reflecting an assumption of continued Engineered Solutions growth and margin improvement. Conversely, these targets require overcoming the expected slowdown to sales growth of between 4% and 6.5% in fiscal 2027 and the pressure resulting from higher last-in, first-out inventory expense.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Sales increased 10.4% year over year to $1.4 billion, and organic growth reached 9.7%, with volume growth of approximately 7%. The Engineered Solutions segment achieved 12.9% organic growth, driven by double-digit percentage growth in automation and fluid power, while the Service Center Based Distribution segment grew organically by 7.9%. EBITDA increased 16.1%, while reported earnings per share rose 13.2% to $3.17.
The company expects sales growth of between 4% and 6.5% and earnings per share of between $11.65 and $12.15 in fiscal 2027. The expected EBITDA margin ranges from 12.5% to 12.8%, with a pricing contribution of between 150 and 200 basis points. The guidance does not include any contribution from future acquisitions or additional share repurchases, and it assumes more moderate growth in the second half due to difficult comparisons and trade and geopolitical uncertainty.
Automation sales grew organically by more than 20% in Q4 fiscal 2026, the best rate in more than four years. Applications cited by management include robotics, autonomous mobile robots, machine vision, semiconductor chip manufacturing equipment, and data centers. The company sees opportunities to integrate physical AI within facilities, while also using technology and AI to improve shared services, internal operations, and sales productivity.
Automated analysis for informational purposes only — not investment advice.
The company ended June 2026 with $127 million in cash and net leverage equal to 0.2 times EBITDA. Available credit facilities provide $826 million, in addition to an $800 million expansion option, while management estimated total balance sheet capacity at approximately $2 billion. In fiscal 2026, the company repurchased 1.2 million shares for $317 million and increased the quarterly dividend by 11%.
Management expects sales growth to slow to a range of between 4% and 6.5% after increasing 10.4% in Q4 fiscal 2026, with more difficult comparisons in the second half. Last-in, first-out inventory expense is also expected to increase from $21.5 million in fiscal 2026 to between $24 million and $28 million in fiscal 2027, which could pressure margins. Chemicals, refining, and flow control remain exposed to weak maintenance and project activity, while trade policies, geopolitical tensions, and inflation could affect demand and costs.
The company raised its intermediate revenue target from $5.5 billion to $7 billion and raised its EBITDA margin target from 13% to 14%. Management aims to reach these two levels within five years, with timing dependent on the economy and the size and pace of acquisitions. The target is based on compound annual growth over the five years through fiscal 2026 of 9% in sales, 14% in EBITDA, and 18% in earnings per share.
