Applied Industrial Technologies, Inc. AIT
AIT's FY2026 results (year ended 2026-06-30) show a solid reacceleration with revenue growth of 8.84% and EPS of $10.95 (up 8.2%), alongside debt reduction from $572.3M to $483.4M and $460.5M in free cash flow. The stock has corrected roughly 10% from prior levels to $322.22 with an RSI of 33.7, bringing the trailing PE to 29.1x — roughly in line with the peer median of 29.9x.
However, EV/EBITDA at 22.2x still carries a 40% premium to the peer median of 15.9x, and persistent insider net selling of approximately $41.9M over 24 months with continued August dispositions tempers enthusiasm despite the oversold technical setup.
What could go wrong
- Valuation premium persists. EV/EBITDA of 22.2x sits 40% above the peer median of 15.9x, limiting downside protection if growth decelerates.
- Insider selling. Net insider dispositions of ~95,865 shares (~$41.9M) over 24 months, with multiple August 2026 sales by the CFO and VP-level officers at $340–355.
- Margin compression risk. Net margin slipped to 8.35% in FY2026 from 8.61% in FY2025 despite revenue acceleration, suggesting cost or mix headwinds.
- Bearish technical momentum. MACD histogram at -3.62 and stock trading below its 50-day MA of $340.72 indicate ongoing downward pressure despite oversold RSI.
What would change my mind
Where this comes from: derived_metrics FY2026 · fundamentals FY2025 vs FY2026 · fundamentals FY2026 · peer_relative. Orin's read on AIT; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All AIT filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Portfolio Management | $714.0M | 0.0% of fund |
| Vanguard Capital Management | $563.7M | 0.0% of fund |
| Aqr Capital Management | $451.6M | 0.2% of fund |
| State Street | $414.5M | 0.0% of fund |
| Geode Capital Management | $317.7M | 0.0% of fund |
| Wellington Management Group Llp | $213.6M | 0.0% of fund |
84 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 124 Form 4 filings, net −$33.6M. Of the 50 on hand, 0 were open-market purchases and 9 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about AIT
Orin answers questions about AIT from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 29.9× | — | 44.5× |
| EV/EBITDA | 22.9× | — | — |
| P/S | 2.47× | — | — |
| P/B | 6.7× | — | — |
11.6%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.5B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$402
$390 – $420 · +21% against today's price
- 11 buy or overweight
- 6 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| AITApplied Industrial Technologies, Inc. | $12B | 29.9× | 22.9× | 30.3% | 8.3% | 22% |
| AOSA. O. Smith Corporation | $8B | 16.1× | 11.6× | 38.6% | 13.1% | 27% |
| ARMKAramark | $14B | 37.2× | 14.7× | 6.6% | 1.9% | 12% |
| CNMCore & Main, Inc. | $8B | 17.1× | 10.7× | 27.0% | 6.0% | 23% |
| DCIDonaldson Company, Inc. | $10B | 22.1× | 17.9× | 34.6% | 11.7% | 28% |
| DRSLeonardo DRS, Inc. | $10B | 31.3× | 21.1× | 24.9% | 8.5% | 12% |
| FLSFlowserve Corporation | $10B | 26.4× | 15.5× | 35.1% | 8.0% | 17% |
| GNRCGenerac Holdings Inc. | $12B | 44.9× | 23.0× | 39.5% | 5.8% | 10% |
| POOLPool Corporation | $6B | 14.8× | 12.5× | 29.6% | 7.4% | 32% |
| RRXRegal Rexnord Corporation | $10B | 31.0× | 12.0× | 37.8% | 5.3% | 5% |
| WTSWatts Water Technologies, Inc. | $12B | 30.9× | 19.1× | 48.8% | 14.3% | 19% |
The median is of the 10 peers listed above and nothing else — check it against the column. This company trades 4.4% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.