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Why the quality investor may take a look at PARKER HANNIFIN CORP (NYSE:PH).

By Mill Chart

Last update: May 14, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PARKER HANNIFIN CORP (NYSE:PH) is suited for quality investing. Investors should of course do their own research, but we spotted PARKER HANNIFIN CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:PH highlighted

  • 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.
  • With a notable ROIC excluding cash and goodwill at 118.0%, 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.
  • PARKER HANNIFIN CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.87, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • PARKER HANNIFIN CORP exhibits impressive Profit Quality (5-year) with a 136.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • PARKER HANNIFIN CORP has experienced impressive EBIT growth over the past 5 years, with 9.48% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • PARKER HANNIFIN CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

A complete fundamental analysis of NYSE:PH

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, PH scores 6 out of 10 in our fundamental rating. PH was compared to 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 correct valuation and a medium growth rate.

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

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

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.

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