NASDAQ:PCAR is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Uncover the hidden value in PACCAR INC (NASDAQ:PCAR) as our stock screening tool recommends it as an undervalued choice. NASDAQ:PCAR maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Evaluating Valuation: NASDAQ:PCAR

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:PCAR has earned a 8 for valuation:

• The Price/Earnings ratio is 9.60, which indicates a very decent valuation of PCAR.
• Compared to the rest of the industry, the Price/Earnings ratio of PCAR indicates a rather cheap valuation: PCAR is cheaper than 89.15% of the companies listed in the same industry.
• PCAR is valuated cheaply when we compare the Price/Earnings ratio to 24.48, which is the current average of the S&P500 Index.
• A Price/Forward Earnings ratio of 11.62 indicates a reasonable valuation of PCAR.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PCAR indicates a somewhat cheap valuation: PCAR is cheaper than 71.32% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of PCAR to the average of the S&P500 Index (18.10), we can say PCAR is valued slightly cheaper.
• Based on the Enterprise Value to EBITDA ratio, PCAR is valued cheaply inside the industry as 89.92% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, PCAR is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
• PCAR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PCAR has an outstanding profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PCAR scores a 8 out of 10:

• PCAR has a better Return On Assets (10.79%) than 82.95% of its industry peers.
• Looking at the Return On Equity, with a value of 25.62%, PCAR belongs to the top of the industry, outperforming 89.15% of the companies in the same industry.
• PCAR's Return On Invested Capital of 15.57% is amongst the best of the industry. PCAR outperforms 86.82% of its industry peers.
• The 3 year average ROIC (8.30%) for PCAR is below the current ROIC(15.57%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 12.01%, PCAR belongs to the top of the industry, outperforming 82.95% of the companies in the same industry.
• PCAR's Profit Margin has improved in the last couple of years.
• The Operating Margin of PCAR (17.90%) is better than 89.15% of its industry peers.
• In the last couple of years the Operating Margin of PCAR has grown nicely.

Exploring NASDAQ:PCAR's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:PCAR scores a 5 out of 10:

• PCAR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

What does the Growth looks like for NASDAQ:PCAR

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:PCAR boasts a 5 out of 10:

• The Earnings Per Share has grown by an impressive 74.30% over the past year.
• Looking at the last year, PCAR shows a very strong growth in Revenue. The Revenue has grown by 24.85%.
• The Revenue has been growing by 8.18% on average over the past years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of PCAR contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.