Is APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) Halal?

NYSE Industrials United States $9.8B
✓ HALAL
Confidence: 95/100
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 5.7% against the AAOIFI threshold of 30%, APPLIED INDUSTRIAL TECHNOLOGIES INC comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Industrial Distribution), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 5.7%
/ 30%
3.8%
/ 30%
7.6%
/ 30%
0.39%
/ 5%
✓ HALAL
DJIM 5.7%
/ 33%
3.8%
/ 33%
7.6%
/ 33%
0.39%
/ 5%
✓ HALAL
MSCI 18.0%
/ 33%
12.2%
/ 33%
24.2%
/ 33%
0.39%
/ 5%
✓ HALAL
S&P 5.7%
/ 33%
3.8%
/ 33%
7.6%
/ 33%
0.39%
/ 5%
✓ HALAL
FTSE 18.0%
/ 33%
12.2%
/ 33%
24.2%
/ 50%
0.39%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
24.8
Forward: 22.4
EPS
$10.51
Dividend Yield
78.0%
Payout: 17.5%
P/B Ratio
5.2
EV/EBITDA
16.9
EV: $9.9B
Revenue
$4.6B
Growth: 8.4%
Beta
0.8
Average volatility
Current Ratio
3.7

Profitability

Gross Margin 30.4%
Operating Margin 10.6%
Net Margin 8.5%
Return on Equity (ROE) 22.0%
Return on Assets (ROA) 10.4%

Cash Flow & Balance Sheet

Operating Cash Flow$492M
Free Cash Flow$465M
Total Debt$572M
Debt-to-Equity30.5
Current Ratio3.7
Total Assets$3.2B

Price & Trading

Last Close$260.51
50-Day MA$273.31
200-Day MA$261.15
Avg Volume335K
Beta0.8
52-Week Range
$199.96
$296.70

About APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT)

CEO
Mr. Neil A. Schrimsher
Employees
6,794
Sector
Industrials
Industry
Industrial Distribution
Country
United States
Exchange
NYSE
Market Cap
$9.8B
Currency
USD

Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in the United States, Canada, Mexico, Australia, New Zealand, Singapore, and Costa Rica. It operates in two segments, Service Center and Engineered Solutions. The Service Center segment distributes industrial bearings, power transmission, fluid power components and systems, specialty flow control, and advanced factory automation solutions, as well as general maintenance products; and motors, belting, drives, couplings, pumps, linear motion, hydraulic and pneumatic components, filtration supplies, hoses, and other related supplies. It also installs, modifies, and repairs conveyor belts and rubber linings, as well as hose assemblies. The Engineered Solutions segment is involved in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, engineered flow control products and services, and automation technologies; and provision of fluid power and industrial flow control products. Its fluid power products and solutions are used in off-highway mobile equipment, stationary industrial equipment and machines, marine and offshore equipment, factory automation, food processing equipment, packaging operations, and downstream energy process systems. This segment also offers pumps, valves, fittings, hoses, process instrumentation, actuators, and filtration supplies; and advanced automation technologies for the design, engineering, assembly, integration, and distribution of machine vision, collaborative robots, mobile robots, radio-frequency identification, industrial networking, motion control, and machine learning technologies for OEMs, machine builders, integrators, and other industrial and technology sectors. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.

Purification Calculator

As a halal stock with 0.39% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), APPLIED INDUSTRIAL TECHNOLOGIES INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is APPLIED INDUSTRIAL TECHNOLOGIES INC's debt ratio?

APPLIED INDUSTRIAL TECHNOLOGIES INC's debt ratio is 5.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 18.0%.

Does APPLIED INDUSTRIAL TECHNOLOGIES INC require dividend purification?

Yes, APPLIED INDUSTRIAL TECHNOLOGIES INC has an impermissible income ratio of 0.39%, which means 0.39% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are APPLIED INDUSTRIAL TECHNOLOGIES INC's key financial metrics?

APPLIED INDUSTRIAL TECHNOLOGIES INC has a market capitalization of $9.8B, trailing P/E ratio of 24.8, and revenue of $4.6B. The company maintains a gross margin of 30.4% and a net margin of 8.5%. Return on equity stands at 22.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.