Applied Industrial Technologies AIT

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
76/100
Strong

About Applied Industrial Technologies

Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in the United States, Canada, Mexico, Australia, New Zealand, Singapore, and Costa Rica. It operates in two segments, Service Center and Engineered Solutions. The Service Center segment distributes industrial bearings, power transmission, fluid power components and systems, specialty flow control, and advanced factory automation solutions, as well … Full AIT analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 68.4th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Strong Interest Coverage & Conservative Leverage Debt serviceability is strong (score 0.79), with robust interest coverage.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
68

Where AIT ranks in Industrial Distribution

Applied Industrial Technologies ranks #3 of 21 scored companies in Industrial Distribution by moat score — the top 14%. The widest moat in the group is Fastenal Company (FAST) at 91/100.

Moat scores for companies ranked near AIT in Industrial Distribution
# Company Moat score Rating
1 Fastenal Company FAST 91/100 Strong
2 W.W. Grainger, Inc. GWW 77/100 Strong
3 Applied Industrial Technologies AIT 76/100 Strong
4 Watsco, Inc. WSO-B 70/100 Moderate
5 Watsco, Inc. WSO 70/100 Moderate
6 Ferguson Enterprises Inc. FERG 60/100 Moderate
7 Core & Main, Inc. CNM 59/100 Moderate
8 MSC Industrial Direct Company, MSM 56/100 Moderate
9 Global Industrial Company GIC 56/100 Moderate

See every General Corporate company ranked by moat score →

How AIT scores on the Corporate Default defenses

Pricing Power

Score 68 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 78 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 76 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 77 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 78 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 79 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding AIT's moat

What is Applied Industrial Technologies's moat score?

Applied Industrial Technologies (AIT) scores 76 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #3 of 21 scored companies in Industrial Distribution, the top 14%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 20 companies in Industrial Distribution. Its strongest defense is Scale & Market Position (79/100) and its weakest is Pricing Power (68/100).

How does Applied Industrial Technologies compare with other Industrial Distribution companies?

Applied Industrial Technologies ranks #3 of 21 scored companies in Industrial Distribution by moat score. The widest moat in Industrial Distribution is Fastenal Company (FAST) at 91/100. The companies ranked closest are W.W. Grainger, Inc. (GWW) at 77 just above it and Watsco, Inc. (WSO-B) at 70 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 20 companies in Industrial Distribution. The defenses are then weighted to produce the overall score out of 100.

Why is Applied Industrial Technologies scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Applied Industrial Technologies?

The Corporate Default template measures 6 defenses, and AIT scores: Pricing Power (68), Cost Advantage (78), Customer Stickiness (76), Capital Efficiency (77), Resilience (78), Scale & Market Position (79). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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