ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Applied Industrial Technologies ROE % Related Terms
Applied Industrial Technologies ROE % 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.
For the Industrial Distribution subindustry, Applied Industrial Technologies's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Applied Industrial Technologies's ROE % distribution charts can be found below:
* The bar in red indicates where Applied Industrial Technologies's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Applied Industrial Technologies (FRA:AT4) has a ROE % of 21.51% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Applied Industrial Technologies and its competitors. This is 16% above median its historical median of 18.62. Over the past decade, Applied Industrial Technologies' ROE % has ranged from 2.76 to 26.59. According to the industry distribution chart, Applied Industrial Technologies ranks #16 out of 156 companies in the Industrial Distribution industry, placing it in the top 10.3%.
Is Applied Industrial Technologies' ROE % too high?
Applied Industrial Technologies' current ROE % of 21.51% is 16% above median its 10-year median of 18.62. Over the past 10 years, this metric has ranged from a low of 2.76 to a high of 26.59. The Industrial Distribution industry median ROE % is 7.24. Applied Industrial Technologies' value of 21.51% is 197.3% above this industry median. Based on the distribution chart, Applied Industrial Technologies ranks #16 out of 156 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' ROE % compare to QXO and CNM?
According to the Industrial Distribution industry distribution chart, Applied Industrial Technologies ranks #16 out of 156 companies for ROE %. This places Applied Industrial Technologies in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 7.24. Applied Industrial Technologies' value of 21.51% is 197.3% above this benchmark. Historically, Applied Industrial Technologies' own ROE % has ranged from 2.76 to 26.59 over the past decade. While the company's 10-year median is 18.62 vs. the industry median of 7.24, 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 ROE % for an Industrial Distribution company?
The median ROE % among Industrial Distribution companies is 7.24, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Industrial Technologies's current ROE % of 21.51% is 197.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Applied Industrial Technologies and its competitors. For the Industrial Distribution industry, the median ROE % is 7.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Industrial Technologies's current ROE % is 21.51%, which is 16% above median its own 10-year median of 18.62. 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 ROE % is 21.51%, which is 16% above median its 10-year median of 18.62 and 197.3% above the Industrial Distribution industry median of 7.24. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Applied Industrial Technologies (FRA:AT4), the current ROE % is 21.51% 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:
ROE %: 21.51% (16% above median its 10-year median of 18.62)
GF Value™: €217.86 vs. price of €278.60 (27.9% above fair value)
Industry Position: 197.3% above the Industrial Distribution median (#16 of 156)
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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