Applied Industrial Technologies Inc. (AIT) exhibits 30.3% gross margins and 19.0% return on invested capital within Consumer Discretionary (Industrial Specialties), balanced against a 16.7x enterprise multiple and 7.4% implied options volatility.
Sustained 30.3% gross profitability converts into 10.9% operating margin and 19.0% ROIC, outpacing sector cost of capital.
ROIC: 19.0% // GM: 30.3%YoY revenue trajectory of +1.9% paired with 2.60% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +1.9% // FCF YLD: 2.60%Altman Z-Score of 8.77 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 8.77 // F-SCORE: 7/9Trading at 185.0x trailing P/E (140.0x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 185.0x // EV/EBITDA: 16.7xOptions market prices a ±7.4% implied move with a 0.83 put/call ratio around $296.00 max pain.
IMPL MOVE: ±7.4% // P/C: 0.83Elevated industry capital intensity and customer concentration in Industrial Specialties require continuous execution to defend 0.0% net margins.
NET MARGIN: 0.0% // D/E: 0.31x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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