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Reasonable growth and debt and a high ROIC for PARKER HANNIFIN CORP (NYSE:PH).

By Mill Chart

Last update: Jan 3, 2024

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.

A Deep Dive into PARKER HANNIFIN CORP's Quality Metrics.

  • PARKER HANNIFIN CORP has demonstrated significant revenue growth over the past 5 years, with a 5.92% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 101.0%, PARKER HANNIFIN CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 4.39, PARKER HANNIFIN CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 9.48%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • 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.

A complete fundamental analysis 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.

PH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. PH scores excellent on profitability, but there are some minor concerns on its financial health. PH has a decent growth rate and is not valued too expensively.

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

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

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.

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