In this article we will dive into PARKER HANNIFIN CORP (NYSE:PH) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PARKER HANNIFIN CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Looking into the quality metrics of PARKER HANNIFIN CORP
PARKER HANNIFIN CORP has shown strong performance in revenue growth over the past 5 years, with a 5.92% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
PARKER HANNIFIN CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 100.0% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
The Debt/Free Cash Flow Ratio of PARKER HANNIFIN CORP stands at 4.39, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
With a robust Profit Quality (5-year) ratio of 136.0%, PARKER HANNIFIN CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
PARKER HANNIFIN CORP has consistently achieved strong EBIT growth over the past 5 years, with a 9.48% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
The EBIT 5-year growth of PARKER HANNIFIN CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.
What else is there to say on the fundamentals of NYSE:PH?
ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.
We assign a fundamental rating of 5 out of 10 to PH. PH was compared to 132 industry peers in the Machinery industry. PH has an excellent profitability rating, but there are concerns on its financial health. PH is not valued too expensively and it also shows a decent growth rate.
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.