PARKER HANNIFIN CORP (1PH.MI) Stock Fundamental Analysis
BIT:1PH - Euronext Milan - US7010941042 - Common Stock - Currency: EUR
Overall 1PH gets a fundamental rating of 5 out of 10. We evaluated 1PH against 105 industry peers in the Machinery industry. While 1PH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1PH has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year 1PH was profitable.
1PH had a positive operating cash flow in the past year.
In the past 5 years 1PH has always been profitable.
Each year in the past 5 years 1PH had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.17%, 1PH belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
1PH's Return On Equity of 24.08% is amongst the best of the industry. 1PH outperforms 92.93% of its industry peers.
1PH has a better Return On Invested Capital (14.21%) than 89.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1PH is above the industry average of 8.45%.
The 3 year average ROIC (11.38%) for 1PH is below the current ROIC(14.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 24.08% | ||
| ROIC | 14.21% |
ROA(3y)7.24%
ROA(5y)7.28%
ROE(3y)19.53%
ROE(5y)19.82%
ROIC(3y)11.38%
ROIC(5y)10.72%
1.3 Margins
The Profit Margin of 1PH (15.87%) is better than 95.96% of its industry peers.
In the last couple of years the Profit Margin of 1PH has grown nicely.
1PH has a Operating Margin of 20.28%. This is amongst the best in the industry. 1PH outperforms 94.95% of its industry peers.
1PH's Operating Margin has improved in the last couple of years.
1PH's Gross Margin of 36.24% is in line compared to the rest of the industry. 1PH outperforms 43.43% of its industry peers.
In the last couple of years the Gross Margin of 1PH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.28% | ||
| PM (TTM) | 15.87% | ||
| GM | 36.24% |
OM growth 3Y5.61%
OM growth 5Y6.57%
PM growth 3Y5.45%
PM growth 5Y6.21%
GM growth 3Y2.6%
GM growth 5Y7.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1PH is still creating some value.
Compared to 1 year ago, 1PH has about the same amount of shares outstanding.
Compared to 5 years ago, 1PH has more shares outstanding
The debt/assets ratio for 1PH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.72 indicates that 1PH is not in any danger for bankruptcy at the moment.
1PH's Altman-Z score of 5.72 is amongst the best of the industry. 1PH outperforms 95.96% of its industry peers.
The Debt to FCF ratio of 1PH is 2.74, which is a good value as it means it would take 1PH, 2.74 years of fcf income to pay off all of its debts.
1PH's Debt to FCF ratio of 2.74 is fine compared to the rest of the industry. 1PH outperforms 76.77% of its industry peers.
1PH has a Debt/Equity ratio of 0.51. This is a neutral value indicating 1PH is somewhat dependend on debt financing.
1PH has a Debt to Equity ratio (0.51) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 5.72 |
ROIC/WACC1.37
WACC10.4%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 1PH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, 1PH is doing worse than 82.83% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that 1PH may have some problems paying its short term obligations.
1PH has a worse Quick ratio (0.59) than 86.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.84% over the past year.
1PH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.50% yearly.
Looking at the last year, 1PH shows a small growth in Revenue. The Revenue has grown by 0.41% in the last year.
1PH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.83% yearly.
EPS 1Y (TTM)7.84%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%6.18%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-1.63%
3.2 Future
The Earnings Per Share is expected to grow by 7.87% on average over the next years.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y8.45%
EPS Next 2Y9.21%
EPS Next 3Y8.97%
EPS Next 5Y7.87%
Revenue Next Year0.47%
Revenue Next 2Y2.9%
Revenue Next 3Y3.71%
Revenue Next 5Y4.2%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.15, the valuation of 1PH can be described as rather expensive.
1PH's Price/Earnings ratio is in line with the industry average.
1PH is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
1PH is valuated rather expensively with a Price/Forward Earnings ratio of 19.88.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PH indicates a slightly more expensive valuation: 1PH is more expensive than 68.69% of the companies listed in the same industry.
1PH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 19.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1PH is valued a bit more expensive than 72.73% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.5 | ||
| EV/EBITDA | 19.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1PH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.74
PEG (5Y)1.4
EPS Next 2Y9.21%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, 1PH is not a good candidate for dividend investing.
1PH's Dividend Yield is comparable with the industry average which is at 3.07.
Compared to an average S&P500 Dividend Yield of 2.33, 1PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of 1PH is nicely growing with an annual growth rate of 13.91%!
Dividend Growth(5Y)13.91%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
25.99% of the earnings are spent on dividend by 1PH. This is a low number and sustainable payout ratio.
1PH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.99%
EPS Next 2Y9.21%
EPS Next 3Y8.97%
BIT:1PH (3/7/2025, 7:00:00 PM)
574.6
-61.2 (-9.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners83.49%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap73.99B
Analysts81.33
Price Target714.96 (24.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend6.09
Dividend Growth(5Y)13.91%
DP25.99%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.11%
Min EPS beat(2)-1.98%
Max EPS beat(2)1.76%
EPS beat(4)3
Avg EPS beat(4)2.06%
Min EPS beat(4)-1.98%
Max EPS beat(4)5.69%
EPS beat(8)7
Avg EPS beat(8)6.64%
EPS beat(12)11
Avg EPS beat(12)6.27%
EPS beat(16)14
Avg EPS beat(16)6.37%
Revenue beat(2)0
Avg Revenue beat(2)-3.47%
Min Revenue beat(2)-4.13%
Max Revenue beat(2)-2.81%
Revenue beat(4)0
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.9%
Revenue beat(8)1
Avg Revenue beat(8)-1.87%
Revenue beat(12)4
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)-0.97%
PT rev (1m)-1%
PT rev (3m)51.7%
EPS NQ rev (1m)-3.7%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)5.76%
Revenue NQ rev (1m)-3.73%
Revenue NQ rev (3m)-6.15%
Revenue NY rev (1m)-1.73%
Revenue NY rev (3m)-4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 19.88 | ||
| P/S | 3.89 | ||
| P/FCF | 23.5 | ||
| P/OCF | 20.89 | ||
| P/B | 5.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.71 |
EPS(TTM)24.82
EY4.32%
EPS(NY)28.9
Fwd EY5.03%
FCF(TTM)24.45
FCFY4.26%
OCF(TTM)27.51
OCFY4.79%
SpS147.56
BVpS97.24
TBVpS-34.71
PEG (NY)2.74
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 24.08% | ||
| ROCE | 18.12% | ||
| ROIC | 14.21% | ||
| ROICexc | 14.47% | ||
| ROICexgc | 77.49% | ||
| OM | 20.28% | ||
| PM (TTM) | 15.87% | ||
| GM | 36.24% | ||
| FCFM | 16.57% |
ROA(3y)7.24%
ROA(5y)7.28%
ROE(3y)19.53%
ROE(5y)19.82%
ROIC(3y)11.38%
ROIC(5y)10.72%
ROICexc(3y)11.63%
ROICexc(5y)11.05%
ROICexgc(3y)46.12%
ROICexgc(5y)42.17%
ROCE(3y)15.73%
ROCE(5y)14.4%
ROICexcg growth 3Y14.15%
ROICexcg growth 5Y6.29%
ROICexc growth 3Y4.37%
ROICexc growth 5Y-2.26%
OM growth 3Y5.61%
OM growth 5Y6.57%
PM growth 3Y5.45%
PM growth 5Y6.21%
GM growth 3Y2.6%
GM growth 5Y7.21%
F-Score9
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 45.14% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.96% | ||
| Profit Quality | 104.44% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 5.72 |
F-Score9
WACC10.4%
ROIC/WACC1.37
Cap/Depr(3y)43.31%
Cap/Depr(5y)41.69%
Cap/Sales(3y)1.82%
Cap/Sales(5y)1.72%
Profit Quality(3y)132.61%
Profit Quality(5y)137.14%
High Growth Momentum
Growth
EPS 1Y (TTM)7.84%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%6.18%
EPS Next Y8.45%
EPS Next 2Y9.21%
EPS Next 3Y8.97%
EPS Next 5Y7.87%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-1.63%
Revenue Next Year0.47%
Revenue Next 2Y2.9%
Revenue Next 3Y3.71%
Revenue Next 5Y4.2%
EBIT growth 1Y6.84%
EBIT growth 3Y17.83%
EBIT growth 5Y13.85%
EBIT Next Year24.56%
EBIT Next 3Y13.11%
EBIT Next 5Y8.97%
FCF growth 1Y49.78%
FCF growth 3Y8.06%
FCF growth 5Y14.22%
OCF growth 1Y47.71%
OCF growth 3Y9.54%
OCF growth 5Y14.36%