Applied Industrial TechnologiesFRA:AT4 +1.53%88 Return-on-Tangible-Equity is 47.91% as of Mar. 2026, which is 22% below its 10-year median of 61.66. 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 154 Industrial Distribution companies, Applied Industrial Technologies ranks better than 83.77% on this metric.
The historical rank and industry rank for Applied Industrial Technologies's Return-on-Tangible-Equity or its related term are showing as below:
FRA:AT4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.71 Med: 61.66 Max: 550.68
Current: 49.23
During the past 13 years, Applied Industrial Technologies's highest Return-on-Tangible-Equity was 550.68%. The lowest was 10.71%. And the median was 61.66%.
FRA:AT4's Return-on-Tangible-Equity is ranked better than 83.77% of 154
companies
in the Industrial Distribution industry
Industry Median: 9.02
vs FRA:AT4: 49.23
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Applied Industrial Technologies Return-on-Tangible-Equity Related Terms
Applied Industrial Technologies Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Industrial Distribution subindustry, Applied Industrial Technologies's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Applied Industrial Technologies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Applied Industrial Technologies's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 47.91% mean?
Applied Industrial Technologies (FRA:AT4) has a Return-on-Tangible-Equity of 47.91% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Applied Industrial Technologies and its competitors. This is 22% below median its historical median of 61.66. Over the past decade, Applied Industrial Technologies' Return-on-Tangible-Equity has ranged from 10.71 to 550.68. According to the industry distribution chart, Applied Industrial Technologies ranks #25 out of 154 companies in the Industrial Distribution industry, placing it in the top 16.2%.
Is Applied Industrial Technologies' Return-on-Tangible-Equity too high?
Applied Industrial Technologies' current Return-on-Tangible-Equity of 47.91% is 22% below median its 10-year median of 61.66. Over the past 10 years, this metric has ranged from a low of 10.71 to a high of 550.68. The Industrial Distribution industry median Return-on-Tangible-Equity is 9.02. Applied Industrial Technologies' value of 47.91% is 431.2% above this industry median. Based on the distribution chart, Applied Industrial Technologies ranks #25 out of 154 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' Return-on-Tangible-Equity compare to QXO and CNM?
According to the Industrial Distribution industry distribution chart, Applied Industrial Technologies ranks #25 out of 154 companies for Return-on-Tangible-Equity. This places Applied Industrial Technologies in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.02. Applied Industrial Technologies' value of 47.91% is 431.2% above this benchmark. Historically, Applied Industrial Technologies' own Return-on-Tangible-Equity has ranged from 10.71 to 550.68 over the past decade. While the company's 10-year median is 61.66 vs. the industry median of 9.02, 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 Return-on-Tangible-Equity for an Industrial Distribution company?
The median Return-on-Tangible-Equity among Industrial Distribution companies is 9.02, based on 154 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Industrial Technologies's current Return-on-Tangible-Equity of 47.91% is 431.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Applied Industrial Technologies and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Equity is 9.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Industrial Technologies's current Return-on-Tangible-Equity is 47.91%, which is 22% below median its own 10-year median of 61.66. 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 Return-on-Tangible-Equity is 47.91%, which is 22% below median its 10-year median of 61.66 and 431.2% above the Industrial Distribution industry median of 9.02. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Applied Industrial Technologies (FRA:AT4), the current Return-on-Tangible-Equity is 47.91% 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:
Return-on-Tangible-Equity: 47.91% (22% below median its 10-year median of 61.66)
GF Value™: €217.86 vs. price of €278.60 (27.9% above fair value)
Industry Position: 431.2% above the Industrial Distribution median (#25 of 154)
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
Get the complete analysis for FRA:AT4
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:AT4 has been successfully added to your 
