NASDAQ:PCAR is an undervalued gem with solid fundamentals.

Uncover the potential of PACCAR INC (NASDAQ:PCAR) as our stock screener's choice for an undervalued stock. NASDAQ:PCAR maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

How We Gauge Valuation for NASDAQ:PCAR

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:PCAR has achieved a 7 out of 10:

• Based on the Price/Earnings ratio of 11.15, the valuation of PCAR can be described as reasonable.
• PCAR's Price/Earnings ratio is rather cheap when compared to the industry. PCAR is cheaper than 85.94% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 28.06. PCAR is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 11.99, which indicates a very decent valuation of PCAR.
• Based on the Price/Forward Earnings ratio, PCAR is valued cheaper than 80.47% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.05, PCAR is valued a bit cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCAR indicates a rather cheap valuation: PCAR is cheaper than 82.03% of the companies listed in the same industry.
• PCAR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PCAR is cheaper than 79.69% of the companies in the same industry.
• The excellent profitability rating of PCAR may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:PCAR

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:PCAR, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 12.54%, PCAR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• With an excellent Return On Equity value of 30.00%, PCAR belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
• PCAR has a better Return On Invested Capital (15.29%) than 86.72% of its industry peers.
• The last Return On Invested Capital (15.29%) for PCAR is above the 3 year average (11.69%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 14.30%, PCAR belongs to the best of the industry, outperforming 86.72% of the companies in the same industry.
• PCAR's Profit Margin has improved in the last couple of years.
• PCAR has a Operating Margin of 18.32%. This is amongst the best in the industry. PCAR outperforms 85.16% of its industry peers.
• In the last couple of years the Operating Margin of PCAR has grown nicely.
• In the last couple of years the Gross Margin of PCAR has grown nicely.

Looking at the Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:PCAR has earned a 5 out of 10:

• An Altman-Z score of 3.57 indicates that PCAR is not in any danger for bankruptcy at the moment.
• PCAR's Altman-Z score of 3.57 is fine compared to the rest of the industry. PCAR outperforms 62.50% of its industry peers.
• PCAR has a debt to FCF ratio of 3.84. This is a good value and a sign of high solvency as PCAR would need 3.84 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.84, PCAR is in the better half of the industry, outperforming 61.72% of the companies in the same industry.

Growth Assessment of NASDAQ:PCAR

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PCAR has achieved a 5 out of 10:

• PCAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.46%, which is quite impressive.
• PCAR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.04% yearly.
• Looking at the last year, PCAR shows a quite strong growth in Revenue. The Revenue has grown by 14.85% in the last year.
• The Revenue has been growing by 8.38% on average over the past years. This is quite good.

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

Check the latest full fundamental report of PCAR for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.