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

By Mill Chart

Last update: Oct 9, 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.


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Why NYSE:PH may be interesting for quality investors.

  • PARKER HANNIFIN CORP has achieved substantial revenue growth over the past 5 years, with a 6.83% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a notable ROIC excluding cash and goodwill at 95.8%, 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 3.54, 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.
  • The Profit Quality (5-year) of PARKER HANNIFIN CORP stands at 137.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • PARKER HANNIFIN CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 13.85%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • PARKER HANNIFIN CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

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 5 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. While PH has a great profitability rating, there are some minor concerns on its financial health. PH is valied quite expensively at the moment, while it does show a decent growth rate.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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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