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

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.
• The ROIC excluding cash and goodwill of PARKER HANNIFIN CORP stands at 118.0%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• 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.
• With a favorable Profit Quality (5-year) ratio of 136.0%, PARKER HANNIFIN CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 9.48%, PARKER HANNIFIN CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• 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.

Fundamental Analysis Observations

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 129 industry peers in the Machinery industry. While PH has a great profitability rating, there are some minor concerns on its financial health. PH has a decent growth rate and is not valued too expensively.

For an up to date full fundamental analysis you can check the fundamental report of PH

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

Keep in mind

This article should in no way be interpreted as advice. 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.