Explain this page
Arphra AIPlain-English read on Applied Industrial Technologies, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
ATop tier
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin30.3%
Operating margin10.9%
Net margin8.6%
ROE21.3%
ROA12.4%
ROIC19.3%
Liquidity & leverage
Current ratio3.32×
Quick ratio2.36×
Debt / equity0.31×
Net debt / EBITDA0.32×
Interest coverage15×
Efficiency & per-share
Asset turnover1.44×
Inventory days58
Days sales out.62
FCF / share$11.98
Book value / share$47.52
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $7.36B | $8.9B | — | — | — | — |
| Enterprise value | — | — | — | $7.63B | $9.08B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 1.70 | 1.99 | — | — | — | — |
| EV / FCF | — | — | — | 22.02 | 19.53 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +5.24% | +4.42% | — | — | — | — |
| Free cash flow yield | — | — | — | +4.71% | +5.23% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +28.91% | +29.05% | +29.16% | +29.84% | +30.31% | +30.27% | +29.19% | +29.67% | +29.41% |
| Operating margin | +6.35% | +9.39% | +10.72% | +11.07% | +10.92% | +10.63% | +11.10% | +10.85% | +11.07% |
| EBITDA margin | +8.13% | +10.76% | +11.96% | +12.75% | +12.70% | +12.36% | +12.42% | +12.79% | +12.63% |
| EBIT margin | +6.42% | +9.36% | +10.76% | +11.58% | +11.38% | +11.22% | +11.33% | +11.49% | +11.32% |
| Pre-tax margin | +5.47% | +8.65% | +10.19% | +11.12% | +10.98% | +10.71% | +10.51% | +10.63% | +10.61% |
| Net margin | +4.47% | +6.76% | +7.86% | +8.61% | +8.61% | +8.45% | +8.47% | +8.57% | +8.31% |
| Cost structure | |||||||||
| Cost of revenue / sales | +71.09% | +70.95% | +70.84% | +70.16% | +69.69% | +70.48% | +72.03% | +70.65% | +71.81% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +21.04% | +19.67% | +18.44% | +18.77% | +19.39% | +18.48% | +18.46% | +19.04% | +19.04% |
| Effective tax rate | +18.25% | +21.95% | +22.91% | +22.56% | +21.55% | +22.26% | +22.63% | +22.41% | +22.62% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +15.52% | +22.40% | +23.77% | +22.84% | +21.31% | +22.90% | +23.01% | +23.53% | +22.99% |
| Return on assets (ROA) | +6.37% | +10.50% | +12.64% | +13.07% | +12.38% | +12.82% | +12.60% | +13.06% | +12.99% |
| Return on capital (ROC) | +11.09% | +18.36% | +22.74% | +20.46% | +20.63% | +20.68% | +21.72% | +21.27% | +22.07% |
| Return on invested capital (ROIC) | +7.81% | +13.20% | +16.67% | +15.92% | +16.26% | +16.45% | +16.57% | +16.79% | +16.56% |
| Asset turnover | +142.44% | +155.37% | +160.86% | +151.75% | +143.71% | +151.60% | +148.86% | +152.42% | +156.33% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +4.47% | +6.76% | +7.86% | +8.61% | +8.61% | +8.45% | +8.47% | +8.57% | +8.31% |
| Asset turnover (× revenue / assets) | +142.44% | +155.37% | +160.86% | +151.75% | +143.71% | +151.60% | +148.86% | +152.42% | +156.33% |
| Equity multiplier (× assets / equity) | +243.61% | +213.39% | +188.10% | +174.80% | +172.16% | +178.67% | +182.62% | +180.18% | +176.99% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 1.42 | 1.55 | 1.61 | 1.52 | 1.44 | 1.52 | 1.49 | 1.52 | 1.56 |
| Fixed-asset turnover | 15.96 | 17.33 | 20.46 | 17.79 | 14.40 | — | — | — | — |
| Inventory turnover | 6.35 | 6.01 | 6.24 | 6.44 | 6.29 | — | — | — | — |
| Receivables turnover | 6.27 | 5.81 | 6.23 | 6.07 | 5.93 | — | — | — | — |
| Payables turnover | 11.05 | 10.42 | 10.36 | 11.77 | 11.35 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 58.24 | 62.88 | 58.59 | 60.10 | 61.56 | — | — | — | — |
| Days inventory outstanding (DIO) | 57.52 | 60.72 | 58.52 | 56.71 | 58.00 | — | — | — | — |
| Days payables outstanding (DPO) | 33.03 | 35.03 | 35.23 | 31.00 | 32.15 | — | — | — | — |
| Cash conversion cycle | 82.74 | 88.57 | 81.89 | 85.80 | 87.41 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.67 | 0.73 | 0.99 | 0.96 | 1.25 | 1.08 | 1.06 | 1.02 | 1.08 |
| FCF / Net income | 1.56 | 0.66 | 0.92 | 0.90 | 1.18 | 0.97 | 0.97 | 0.96 | 0.99 |
| FCF margin | +6.98% | +4.45% | +7.19% | +7.74% | +10.19% | +8.23% | +8.23% | +8.20% | +8.26% |
| OCF margin | +7.47% | +4.92% | +7.79% | +8.29% | +10.79% | +9.15% | +8.94% | +8.70% | +8.94% |
| CapEx / Revenue | +0.49% | +0.48% | +0.60% | +0.56% | +0.60% | +0.57% | +0.57% | +0.60% | +0.60% |
| CapEx / D&A | 0.29 | 0.34 | 0.50 | 0.47 | 0.45 | — | — | — | — |
| Stock-based comp / Revenue | +0.20% | +0.22% | +0.22% | +0.21% | +0.16% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 3.68 | 6.58 | 8.84 | 9.83 | 10.12 | 10.71 | 11.78 | 12.80 | 12.24 |
| EPS · basic | 3.73 | 6.69 | 8.98 | 9.98 | 10.26 | 10.91 | 12.12 | 12.87 | 12.34 |
| Book value / share | 23.73 | 29.39 | 37.19 | 43.02 | 47.52 | 47.00 | 49.53 | 51.43 | 53.16 |
| Tangible BV / share | 2.36 | 8.58 | 16.43 | 20.98 | 20.52 | 47.00 | 49.53 | 51.43 | 53.16 |
| Sales / share | 82.35 | 97.45 | 112.51 | 114.10 | 117.57 | 127.30 | 134.64 | 141.23 | 147.10 |
| Operating CF / share | 6.15 | 4.80 | 8.77 | 9.46 | 12.69 | 11.65 | 12.03 | 12.28 | 13.15 |
| Free cash flow / share | 5.75 | 4.33 | 8.10 | 8.83 | 11.98 | 10.47 | 11.08 | 11.58 | 12.15 |
| Dividends / share | 1.29 | 1.32 | 1.36 | 1.42 | 1.64 | 1.59 | 1.70 | 1.76 | 1.91 |
| Payout ratio | +35.00% | +20.13% | +15.41% | +14.49% | +16.21% | +14.78% | +14.92% | +14.55% | +15.64% |
| Retention ratio | +65.00% | +79.87% | +84.59% | +85.51% | +83.79% | +85.22% | +85.08% | +85.45% | +84.36% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +17.76% | +15.80% | +1.51% | +1.88% | +7.52% | +5.65% | +5.18% | +4.05% | +7.27% |
| Gross profit · YoY | — | +18.32% | +16.27% | +3.86% | +3.48% | +7.39% | +1.86% | +6.93% | +3.13% | +7.50% |
| Profit | ||||||||||
| Operating income · YoY | — | +74.18% | +32.22% | +4.79% | +0.55% | +4.62% | +10.31% | +2.83% | +6.16% | +14.99% |
| EBITDA · YoY | — | +55.93% | +28.66% | +8.22% | +1.51% | +4.58% | +6.21% | +8.33% | +2.72% | +13.34% |
| Net income · YoY | — | +77.82% | +34.70% | +11.25% | +1.87% | +5.55% | +5.79% | +6.44% | +0.90% | +15.90% |
| Operating | ||||||||||
| EBIT · YoY | — | +71.54% | +33.10% | +9.29% | +0.10% | +6.03% | +6.69% | +6.62% | +2.55% | +15.14% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | +78.80% | +34.35% | +11.20% | +2.95% | +5.81% | +10.05% | +8.60% | -4.34% | +16.21% |
| EPS · basic · YoY | — | +79.36% | +34.23% | +11.14% | +2.81% | +6.36% | +11.06% | +6.23% | -4.16% | +16.13% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $919.99M | $800.25M | $622.1M | $734.94M | $572.3M | $710.36M | $742.15M | $795.93M | $795.25M |
| Net debt | $662.24M | $615.77M | $278.06M | $274.33M | $183.88M | $272.96M | $294.77M | $307.67M | $302.42M |
| Net debt / EBITDA | 2.52 | 1.50 | 0.53 | 0.48 | 0.32 | 0.45 | 0.46 | 0.44 | 0.42 |
| Debt / equity | 0.99 | 0.70 | 0.43 | 0.44 | 0.31 | 0.39 | 0.39 | 0.40 | 0.39 |
| Debt / assets | +40.50% | +32.63% | +22.68% | +24.90% | +18.02% | +21.95% | +21.31% | +22.25% | +21.92% |
| Equity / assets | +41.05% | +46.86% | +53.16% | +57.21% | +58.09% | +55.97% | +54.76% | +55.50% | +56.50% |
| Coverage | |||||||||
| EBITDA / interest expense | 8.54 | 15.31 | 21.29 | 27.80 | 16.88 | 21.23 | 20.79 | 22.26 | 21.72 |
| Operating income / interest | 6.67 | 13.36 | 19.09 | 24.13 | 14.52 | 18.27 | 18.58 | 18.88 | 19.04 |
| Interest expense | $30.81M | $26.79M | $24.79M | $20.54M | $34.34M | $28.55M | $30.96M | $31.33M | $32.99M |
| Liquidity | |||||||||
| Current ratio | 2.80 | 2.72 | 3.05 | 3.53 | 3.32 | — | — | — | — |
| Quick ratio | 1.81 | 1.68 | 1.95 | 2.39 | 2.20 | — | — | — | — |
| Cash ratio | 0.60 | 0.37 | 0.64 | 0.92 | 0.74 | — | — | — | — |
| Working capital | $768.88M | $859.9M | $1.11B | $1.27B | $1.22B | — | — | — | — |
| Working capital / revenue | +23.76% | +22.57% | +25.07% | +28.33% | +26.76% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 1.99x | 1.70x |
| Earnings yield | 4.4% | 5.2% |
| FCF yield | 5.2% | 4.7% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 21.3% | 22.8% |
| ROA | 12.4% | 13.1% |
| ROIC | 14.8% | 15.3% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 0.32 | 0.48 |
| Interest coverage | — | — |
| Current ratio | 3.32x | 3.53x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).