Applied Industrial TechnologiesFRA:AT4 +1.53%88 Interest Coverage is 56.36 as of Mar. 2026, which is 269% above its 10-year median of 15.27. GuruFocus rates FRA:AT4 with a GF Score™ of 88/100 and a GF Value™ of €217.86 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 132 Industrial Distribution companies, Applied Industrial Technologies ranks better than 84.85% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Applied Industrial Technologies's
Operating Income
for the
three
months ended in Mar. 2026 was €119 Mil. Applied Industrial Technologies's Interest Expense for the
three
months ended in Mar. 2026 was €-2 Mil.
Applied Industrial Technologies's interest coverage for the quarter that ended in Mar. 2026 was 56.36.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Applied Industrial Technologies's Interest Coverage or its related term are showing as below:
FRA:AT4'
s Interest Coverage Range Over the Past 10 Years
Min: 5.9 Med: 15.27 Max: 92.08
Current: 92.08
FRA:AT4's Interest Coverage is ranked better than 84.85% of 132
companies
in the Industrial Distribution industry
Industry Median: 6.84
vs FRA:AT4: 92.08
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Applied Industrial Technologies Interest Coverage Related Terms
Applied Industrial Technologies Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:AT4 vs QXO, CNM, WSO: Interest Coverage Comparison
For the Industrial Distribution subindustry, Applied Industrial Technologies's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Applied Industrial Technologies Interest Coverage vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Applied Industrial Technologies's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Applied Industrial Technologies's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Applied Industrial Technologies (FRA:AT4) has a Interest Coverage of 56.36 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Applied Industrial Technologies and its competitors. This is 269% above median its historical median of 15.27. Over the past decade, Applied Industrial Technologies' Interest Coverage has ranged from 5.90 to 92.08. According to the industry distribution chart, Applied Industrial Technologies ranks #20 out of 132 companies in the Industrial Distribution industry, placing it in the top 15.2%.
Is Applied Industrial Technologies' Interest Coverage too high?
Applied Industrial Technologies' current Interest Coverage of 56.36 is 269% above median its 10-year median of 15.27. Over the past 10 years, this metric has ranged from a low of 5.90 to a high of 92.08. The Industrial Distribution industry median Interest Coverage is 6.84. Applied Industrial Technologies' value of 56.36 is 724% above this industry median. Based on the distribution chart, Applied Industrial Technologies ranks #20 out of 132 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Applied Industrial Technologies has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Industrial Technologies' Interest Coverage compare to QXO and CNM?
According to the Industrial Distribution industry distribution chart, Applied Industrial Technologies ranks #20 out of 132 companies for Interest Coverage. This places Applied Industrial Technologies in the top 15% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.84. Applied Industrial Technologies' value of 56.36 is 724% above this benchmark. Historically, Applied Industrial Technologies' own Interest Coverage has ranged from 5.90 to 92.08 over the past decade. While the company's 10-year median is 15.27 vs. the industry median of 6.84, Applied Industrial Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Distribution company?
The median Interest Coverage among Industrial Distribution companies is 6.84, based on 132 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Industrial Technologies's current Interest Coverage of 56.36 is 724% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Applied Industrial Technologies and its competitors. For the Industrial Distribution industry, the median Interest Coverage is 6.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Industrial Technologies's current Interest Coverage is 56.36, which is 269% above median its own 10-year median of 15.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Industrial Technologies stock overvalued right now?
Based on GuruFocus' analysis, Applied Industrial Technologies (FRA:AT4) is currently considered Modestly Overvalued. The stock's GF Value™ is €217.86, compared to a current price of €278.60 — trading 27.9% above its estimated fair value. The current Interest Coverage is 56.36, which is 269% above median its 10-year median of 15.27 and 724% above the Industrial Distribution industry median of 6.84. Applied Industrial Technologies' overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Applied Industrial Technologies (FRA:AT4), the current Interest Coverage is 56.36 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Industrial Technologies (FRA:AT4) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Industrial Technologies stock appears to be overvalued.
The current stock price of €278.60 is trading 27.9% above its estimated GF Value™ of €217.86.
GuruFocus considers Applied Industrial Technologies to be Modestly Overvalued.
Key valuation signals for FRA:AT4:
Interest Coverage: 56.36 (269% above median its 10-year median of 15.27)
GF Value™: €217.86 vs. price of €278.60 (27.9% above fair value)
Industry Position: 724% above the Industrial Distribution median (#20 of 132)
No single metric tells the full story. See the FRA:AT4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Industrial Technologies Business Description
Applied Industrial Technologies Inc is a distributor of industrial products to the maintenance, repair, and operations market and the original equipment manufacturing industry. Further, the company provides engineering and design services for industrial and fluid power applications. The products include bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion components, safety products, oilfield supplies, and other industrial and maintenance supplies. The company's reportable segments are; Service Center Based Distribution which derives key revenue, and Engineered Solutions. Geographically, the company derives its key revenue from the United States and the rest from Canada and other countries.
88GF Score
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