Latest Ratios: P/E Ratio 31.2x · EV/EBITDA 21.2x · ROE 22.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.7B | $9.0B | $7.6B | $5.7B | $3.8B | $3.6B | $2.4B | $2.4B | $2.8B | $2.3B | $1.8B |
| Enterprise Value | $11.8B | $9.2B | $7.9B | $6.0B | $4.4B | $4.2B | $3.1B | $3.3B | $3.7B | $2.5B | $2.0B |
| P/E Ratio → | 31.16 | 22.97 | 19.74 | 16.38 | 14.62 | 24.74 | 100.63 | 16.72 | 19.43 | 17.37 | 60.19 |
| P/S Ratio | 2.55 | 1.98 | 1.70 | 1.29 | 0.99 | 1.11 | 0.75 | 0.69 | 0.90 | 0.90 | 0.71 |
| P/B Ratio | 6.64 | 4.89 | 4.51 | 3.89 | 3.27 | 3.84 | 2.88 | 2.69 | 3.38 | 3.12 | 2.71 |
| P/FCF | 25.05 | 19.40 | 21.98 | 17.89 | 22.19 | 15.84 | 8.80 | 14.91 | 22.21 | 15.77 | 12.05 |
| P/OCF | 23.67 | 18.32 | 20.51 | 16.51 | 20.05 | 14.80 | 8.20 | 13.34 | 18.71 | 14.13 | 11.07 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.02 | 1.76 | 1.35 | 1.15 | 1.31 | 0.95 | 0.94 | 1.19 | 0.97 | 0.81 |
| EV / EBITDA | 21.18 | 16.47 | 14.39 | 11.32 | 10.64 | 16.27 | 20.42 | 11.01 | 13.29 | 11.73 | 15.73 |
| EV / EBIT | 23.75 | 17.73 | 15.21 | 12.55 | 12.27 | 20.40 | 14.08 | 13.85 | 16.01 | 14.30 | 23.30 |
| EV / FCF | — | 19.79 | 22.77 | 18.77 | 25.83 | 18.78 | 11.20 | 20.16 | 29.54 | 17.03 | 13.86 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 30.3% | 30.3% | 29.8% | 29.2% | 29.0% | 28.9% | 28.9% | 29.0% | 28.8% | 28.4% | 28.1% |
| Operating Margin | 10.9% | 10.9% | 11.1% | 10.7% | 9.4% | 6.3% | 2.7% | 6.7% | 7.3% | 6.7% | 3.5% |
| Net Profit Margin | 8.6% | 8.6% | 8.6% | 7.9% | 6.8% | 4.5% | 0.7% | 4.1% | 4.6% | 5.2% | 1.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 22.2% | 22.2% | 24.5% | 26.6% | 24.7% | 16.3% | 2.8% | 16.8% | 18.2% | 19.1% | 4.2% |
| ROA | 12.8% | 12.8% | 13.5% | 13.3% | 10.9% | 6.4% | 1.0% | 6.2% | 7.7% | 9.9% | 2.2% |
| ROIC | 18.7% | 18.7% | 20.1% | 20.3% | 16.0% | 9.9% | 4.1% | 10.1% | 12.8% | 14.1% | 6.9% |
| ROCE | 19.5% | 19.5% | 21.3% | 22.8% | 18.8% | 11.1% | 4.7% | 12.4% | 15.4% | 16.5% | 8.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.31 | 0.31 | 0.44 | 0.43 | 0.70 | 0.99 | 1.11 | 1.07 | 1.18 | 0.39 | 0.50 |
| Debt / EBITDA | 1.02 | 1.02 | 1.34 | 1.18 | 1.95 | 3.53 | 6.15 | 3.24 | 3.50 | 1.36 | 2.52 |
| Net Debt / Equity | — | 0.10 | 0.16 | 0.19 | 0.54 | 0.71 | 0.79 | 0.95 | 1.12 | 0.25 | 0.41 |
| Net Debt / EBITDA | 0.33 | 0.33 | 0.50 | 0.53 | 1.50 | 2.54 | 4.38 | 2.87 | 3.30 | 0.87 | 2.06 |
| Debt / FCF | — | 0.40 | 0.79 | 0.88 | 3.63 | 2.93 | 2.41 | 5.26 | 7.33 | 1.26 | 1.82 |
| Interest Coverage | 15.12 | 15.12 | 25.25 | 19.14 | 13.31 | 6.75 | 5.91 | 5.77 | 9.48 | 19.91 | 9.77 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.32 | 3.32 | 3.53 | 3.05 | 2.72 | 2.80 | 2.72 | 2.71 | 2.45 | 2.85 | 2.85 |
| Quick Ratio | 2.36 | 2.36 | 2.56 | 2.12 | 1.82 | 1.95 | 1.81 | 1.65 | 1.47 | 1.73 | 1.62 |
| Cash Ratio | 0.74 | 0.74 | 0.92 | 0.64 | 0.37 | 0.60 | 0.63 | 0.26 | 0.13 | 0.34 | 0.22 |
| Asset Turnover | — | 1.44 | 1.52 | 1.61 | 1.55 | 1.42 | 1.42 | 1.49 | 1.34 | 1.87 | 1.92 |
| Inventory Turnover | 6.29 | 6.29 | 6.44 | 6.24 | 6.01 | 6.35 | 5.93 | 5.51 | 5.19 | 5.38 | 5.36 |
| Days Sales Outstanding | — | 61.56 | 60.10 | 58.59 | 62.88 | 58.24 | 50.61 | 56.85 | 65.18 | 55.01 | 50.40 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.7% | 0.7% | 0.9% | 1.4% | 1.4% | 2.0% | 2.0% | 1.7% | 1.9% | 2.4% |
| Payout Ratio | 16.2% | 16.2% | 14.5% | 15.4% | 20.1% | 35.0% | 203.3% | 32.8% | 32.4% | 33.3% | 146.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.2% | 4.4% | 5.1% | 6.1% | 6.8% | 4.0% | 1.0% | 6.0% | 5.1% | 5.8% | 1.7% |
| FCF Yield | 4.0% | 5.2% | 4.6% | 5.6% | 4.5% | 6.3% | 11.4% | 6.7% | 4.5% | 6.3% | 8.3% |
| Buyback Yield | 1.3% | 1.7% | 1.0% | 0.0% | 0.4% | 1.1% | 0.1% | 0.5% | 0.8% | 0.4% | 2.1% |
| Total Shareholder Yield | 1.8% | 2.4% | 1.7% | 1.0% | 1.7% | 2.5% | 2.1% | 2.4% | 2.5% | 2.3% | 4.5% |
| Shares Outstanding | — | $39M | $39M | $39M | $39M | $39M | $39M | $39M | $39M | $39M | $39M |
Cyclical industrial demand sensitivity
According to current market data, AIT trades at a P/E of 33.31, which suggests that investors are pricing in a transition toward higher-margin automation services rather than traditional distribution, despite the company's relatively modest revenue growth of 1.88% compared to broader industrial sector benchmarks.
The current valuation appears to be a bet on the successful integration of technical services, as the PEG ratio of 0.45 indicates that the market may be underestimating the earnings growth potential relative to the current multiple. Investors should monitor whether this premium holds if the company fails to accelerate its shift toward higher-margin automation solutions.
Based on reported financial figures, AIT's ROIC has remained in a narrow band between 4.5% and 5.5% over the last ten quarters, which indicates that the company is struggling to compound returns on invested capital at a rate comparable to high-margin peers like Fastenal.
The persistent gap between AIT's ROIC and its peers suggests that the capital-intensive nature of its distribution network and the integration costs of bolt-on acquisitions are acting as a drag on overall efficiency. This warrants further investigation into whether the company's technical pivot can eventually drive a structural improvement in capital returns.
As reported in recent quarterly filings, AIT's cash conversion cycle has fluctuated between 80 and 91 days, reflecting a consistent but relatively slow inventory turnover profile that is typical for a distributor managing a vast array of specialized industrial components.
The stability in the CCC suggests that management maintains disciplined control over receivables and payables, even as they navigate the complexities of project-based automation revenue. However, the asset turnover ratio of 0.41 indicates that the company remains heavily reliant on its physical distribution footprint to generate each dollar of revenue.
Based on an analysis of industry benchmarks, the most commonly misapplied metric for AIT is the EV/Sales ratio, which obscures the company's evolving business mix by treating its high-touch technical integration services as identical to low-margin, commodity-based industrial distribution models.
Using a standard distribution multiple fails to account for the 'stickiness' and higher margin profile of the Fluid Power and Automation segments. Analysts should instead focus on segment-specific margins or adjusted EBITDA to better capture the value of the company's shift toward specialized engineering consultancy.
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Quick answers to the most common questions about buying AIT stock.
Applied Industrial Technologies, Inc.'s current P/E ratio is 31.2x. The historical average is 26.3x. This places it at the 90th percentile of its historical range.
Applied Industrial Technologies, Inc.'s current EV/EBITDA is 21.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.1x.
Applied Industrial Technologies, Inc.'s return on equity (ROE) is 22.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 14.3%.
Based on historical data, Applied Industrial Technologies, Inc. is trading at a P/E of 31.2x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Applied Industrial Technologies, Inc.'s current dividend yield is 0.52% with a payout ratio of 16.2%.
Applied Industrial Technologies, Inc. has 30.3% gross margin and 10.9% operating margin. Operating margin between 10-20% is typical for established companies.
Applied Industrial Technologies, Inc.'s Debt/EBITDA ratio is 1.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.