Assessing Applied Industrial Technologies (AIT) Valuation After Business Update And Insider Stock Sale

Insider sale and business update put Applied Industrial Technologies (AIT) in focus

Applied Industrial Technologies (AIT) is back on investors’ radar after a recent insider stock sale by a senior executive. The transaction coincided with management updates on business momentum, margins, acquisitions, and a higher dividend.

See our latest analysis for Applied Industrial Technologies.

At a share price of US$279.84, Applied Industrial Technologies has recently paused after a strong run, with a 90 day share price return of 14.79% and a more measured 1 year total shareholder return of 4.73%. The 3 year total shareholder return of 104.14% and 5 year total shareholder return of 241.35% point to a stock that has already delivered substantial gains as management continues to emphasize automation, engineered solutions, and bolt on deals alongside the latest dividend increase.

If this update has you looking beyond a single name, it could be a good moment to broaden your watchlist with 24 power grid technology and infrastructure stocks as potential long term infrastructure companions to consider.

With the shares near US$279.84, a value score of 1, and the stock trading at an intrinsic premium of about 12%, the real question is whether Applied Industrial Technologies still offers upside or if the market is already factoring in expectations for future growth.

Most Popular Narrative: 7.7% Undervalued

With Applied Industrial Technologies closing at $279.84 versus a narrative fair value around $303, the most followed view sees some remaining value tied to long term earnings power.

The accelerating build-out of data center, semiconductor, and advanced manufacturing infrastructure is increasing demand for industrial automation, robotics, and flow control solutions, positioning Applied Industrial Technologies to capture higher-margin sales and expand its addressable market, supporting long-term revenue and margin growth.

Read the complete narrative.

Want to see what is baked into that upside story? The narrative leans on steady revenue compounding, slightly richer margins, and a future earnings multiple above the sector norm. The precise mix of growth, profitability and discount rate assumptions is where the valuation really takes shape.

Result: Fair Value of $303.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside view still depends on acquisitions delivering as planned and on Mobile Fluid Power OEM weakness easing, risks that could easily challenge the upbeat assumptions.

Find out about the key risks to this Applied Industrial Technologies narrative.

Another angle on valuation: price tag looks full

Analysts see some upside for Applied Industrial Technologies, yet the market is already paying a P/E of 25.9x compared with a fair ratio of 24.1x, peers at 31.7x, and the US Trade Distributors average of 24.2x. That points to limited valuation slack if growth expectations soften.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With mixed views on AIT across the article, it makes sense to check the numbers yourself and move quickly to form your own stance. You can start with 2 key rewards and 1 important warning sign.

Looking for more investment ideas?

If AIT has your attention, do not stop there. Use the same framework across other ideas so you keep building a watchlist that genuinely fits your goals.

• Target dependable income streams by scanning companies in our 13 dividend fortresses that may appeal if you want yield with a focus on resilience.
• Spot potential value candidates early by reviewing the screener containing 24 high quality undiscovered gems, where lesser known names still pass solid fundamental checks.
• Prioritize capital preservation by checking companies in the 81 resilient stocks with low risk scores that score well on balance sheet strength and risk metrics.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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