Applied Industrial TechnologiesFRA:AT4 +1.53%88 Operating Margin % is 11.02% as of Mar. 2026, which is 42% above its 10-year median of 7.77. 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 157 Industrial Distribution companies, Applied Industrial Technologies ranks better than 83.44% on this metric.
Applied Industrial Technologies Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Applied Industrial Technologies's Operating Margin % or its related term are showing as below:
FRA:AT4'
s Operating Margin % Range Over the Past 10 Years
Min: 6.14 Med: 7.77 Max: 11.07
Current: 10.86
FRA:AT4's Operating Margin % is ranked better than 83.44% of 157
companies
in the Industrial Distribution industry
Industry Median: 4.7
vs FRA:AT4: 10.86
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Applied Industrial Technologies Operating Margin % Related Terms
Applied Industrial Technologies Operating Margin % 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.
FRA:AT4 vs QXO, CNM, WSO: Operating Margin % Comparison
For the Industrial Distribution subindustry, Applied Industrial Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Applied Industrial Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Applied Industrial Technologies's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 Operating Margin % of 11.02% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Applied Industrial Technologies and its competitors. This is 42% above median its historical median of 7.77. Over the past decade, Applied Industrial Technologies' Operating Margin % has ranged from 6.14 to 11.07. According to the industry distribution chart, Applied Industrial Technologies ranks #26 out of 157 companies in the Industrial Distribution industry, placing it in the top 16.6%.
Is Applied Industrial Technologies' Operating Margin % too high?
Applied Industrial Technologies' current Operating Margin % of 11.02% is 42% above median its 10-year median of 7.77. Over the past 10 years, this metric has ranged from a low of 6.14 to a high of 11.07. The Industrial Distribution industry median Operating Margin % is 4.70. Applied Industrial Technologies' value of 11.02% is 134.5% above this industry median. Based on the distribution chart, Applied Industrial Technologies ranks #26 out of 157 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' Operating Margin % compare to QXO and CNM?
According to the Industrial Distribution industry distribution chart, Applied Industrial Technologies ranks #26 out of 157 companies for Operating Margin %. This places Applied Industrial Technologies in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.70. Applied Industrial Technologies' value of 11.02% is 134.5% above this benchmark. Historically, Applied Industrial Technologies' own Operating Margin % has ranged from 6.14 to 11.07 over the past decade. While the company's 10-year median is 7.77 vs. the industry median of 4.70, 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 Operating Margin % for an Industrial Distribution company?
The median Operating Margin % among Industrial Distribution companies is 4.70, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Industrial Technologies's current Operating Margin % of 11.02% is 134.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Applied Industrial Technologies and its competitors. For the Industrial Distribution industry, the median Operating Margin % is 4.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Industrial Technologies's current Operating Margin % is 11.02%, which is 42% above median its own 10-year median of 7.77. 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 Operating Margin % is 11.02%, which is 42% above median its 10-year median of 7.77 and 134.5% above the Industrial Distribution industry median of 4.70. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Applied Industrial Technologies (FRA:AT4), the current Operating Margin % is 11.02% 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:
Operating Margin %: 11.02% (42% above median its 10-year median of 7.77)
GF Value™: €217.86 vs. price of €278.60 (27.9% above fair value)
Industry Position: 134.5% above the Industrial Distribution median (#26 of 157)
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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