Applied Industrial TechnologiesFRA:AT4 +1.53%87 3-Year ROIIC % is 22.43 as of Jun. 2025, which is 17% above its 10-year median of 19.09. GuruFocus rates FRA:AT4 with a GF Score™ of 87/100 and a GF Value™ of €217.92 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 150 Industrial Distribution companies, Applied Industrial Technologies ranks better than 79.33% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Applied Industrial Technologies's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 22.43%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Applied Industrial Technologies 3-Year ROIIC % Related Terms
Applied Industrial Technologies 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Industrial Distribution subindustry, Applied Industrial Technologies's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Applied Industrial Technologies's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Applied Industrial Technologies's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Applied Industrial Technologies (FRA:AT4) has a 3-Year ROIIC % of 22.43 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Applied Industrial Technologies and its competitors. This is 17% above median its historical median of 19.09. According to the industry distribution chart, Applied Industrial Technologies ranks #31 out of 150 companies in the Industrial Distribution industry, placing it in the top 20.7%.
Is Applied Industrial Technologies' 3-Year ROIIC % too high?
Applied Industrial Technologies' current 3-Year ROIIC % of 22.43 is 17% above median its 10-year median of 19.09. The Industrial Distribution industry median 3-Year ROIIC % is 3.35. Applied Industrial Technologies' value of 22.43 is 569.6% above this industry median. Based on the distribution chart, Applied Industrial Technologies ranks #31 out of 150 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 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Industrial Technologies' 3-Year ROIIC % compare to QXO and CNM?
According to the Industrial Distribution industry distribution chart, Applied Industrial Technologies ranks #31 out of 150 companies for 3-Year ROIIC %. This places Applied Industrial Technologies in the top 21% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.35. Applied Industrial Technologies' value of 22.43 is 569.6% above this benchmark. While the company's 10-year median is 19.09 vs. the industry median of 3.35, 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 3-Year ROIIC % for an Industrial Distribution company?
The median 3-Year ROIIC % among Industrial Distribution companies is 3.35, based on 150 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Industrial Technologies's current 3-Year ROIIC % of 22.43 is 569.6% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Applied Industrial Technologies and its competitors. For the Industrial Distribution industry, the median 3-Year ROIIC % is 3.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Industrial Technologies's current 3-Year ROIIC % is 22.43, which is 17% above median its own 10-year median of 19.09. 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 €217.92, compared to a current price of €278.60 — trading 27.8% above its estimated fair value. The current 3-Year ROIIC % is 22.43, which is 17% above median its 10-year median of 19.09 and 569.6% above the Industrial Distribution industry median of 3.35. Applied Industrial Technologies' overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Applied Industrial Technologies (FRA:AT4), the current 3-Year ROIIC % is 22.43 as of Jun. 2025. 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 27.8% above its estimated GF Value™ of €217.92.
GuruFocus considers Applied Industrial Technologies to be Modestly Overvalued.
Key valuation signals for FRA:AT4:
3-Year ROIIC %: 22.43 (17% above median its 10-year median of 19.09)
GF Value™: €217.92 vs. price of €278.60 (27.8% above fair value)
Industry Position: 569.6% above the Industrial Distribution median (#31 of 150)
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.
87GF Score
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