PARKER HANNIFIN CORP (1PH.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PH - US7010941042 - Common Stock
803.2 EUR
+63.2 (+8.54%)
1PH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 111 industry peers in the Machinery industry. While 1PH has a great profitability rating, there are some minor concerns on its financial health. 1PH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1PH was profitable.
- 1PH had a positive operating cash flow in the past year.
- Each year in the past 5 years 1PH has been profitable.
- Each year in the past 5 years 1PH had a positive operating cash flow.
1.2 Ratios
- 1PH has a better Return On Assets (11.87%) than 92.17% of its industry peers.
- 1PH has a better Return On Equity (26.43%) than 92.17% of its industry peers.
- 1PH's Return On Invested Capital of 14.75% is amongst the best of the industry. 1PH outperforms 89.57% of its industry peers.
- 1PH had an Average Return On Invested Capital over the past 3 years of 12.83%. This is above the industry average of 9.21%.
- The last Return On Invested Capital (14.75%) for 1PH is above the 3 year average (12.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROIC | 14.75% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
1.3 Margins
- 1PH has a better Profit Margin (18.18%) than 96.52% of its industry peers.
- In the last couple of years the Profit Margin of 1PH has grown nicely.
- Looking at the Operating Margin, with a value of 21.31%, 1PH belongs to the top of the industry, outperforming 93.91% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1PH has grown nicely.
- 1PH has a Gross Margin of 37.20%. This is comparable to the rest of the industry: 1PH outperforms 45.22% of its industry peers.
- 1PH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% |
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
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 less shares outstanding
- Compared to 5 years ago, 1PH has less shares outstanding
- The debt/assets ratio for 1PH has been reduced compared to a year ago.
2.2 Solvency
- 1PH has an Altman-Z score of 6.38. This indicates that 1PH is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.38, 1PH belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- The Debt to FCF ratio of 1PH is 3.05, which is a good value as it means it would take 1PH, 3.05 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 3.05, 1PH is doing good in the industry, outperforming 70.43% of the companies in the same industry.
- 1PH has a Debt/Equity ratio of 0.54. This is a neutral value indicating 1PH is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1PH (0.54) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.38 |
ROIC/WACC1.54
WACC9.59%
2.3 Liquidity
- 1PH has a Current Ratio of 1.07. This is a normal value and indicates that 1PH is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.07, 1PH is doing worse than 79.13% of the companies in the same industry.
- 1PH has a Quick Ratio of 1.07. This is a bad value and indicates that 1PH is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of 1PH (0.61) is worse than 84.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
- 1PH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.73%, which is quite good.
- 1PH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.50% yearly.
- Looking at the last year, 1PH shows a small growth in Revenue. The Revenue has grown by 0.22% in the last year.
- Measured over the past years, 1PH shows a small growth in Revenue. The Revenue has been growing by 7.70% on average per year.
EPS 1Y (TTM)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
3.2 Future
- 1PH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.19% yearly.
- 1PH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.
EPS Next Y14.16%
EPS Next 2Y11.9%
EPS Next 3Y11.1%
EPS Next 5Y9.19%
Revenue Next Year6.92%
Revenue Next 2Y7.09%
Revenue Next 3Y6.64%
Revenue Next 5Y5.48%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 33.23, which means the current valuation is very expensive for 1PH.
- 1PH's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.82. 1PH is around the same levels.
- 1PH is valuated quite expensively with a Price/Forward Earnings ratio of 27.53.
- 1PH's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1PH is more expensive than 67.83% of the companies in the same industry.
- 1PH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.23 | ||
| Fwd PE | 27.53 |
4.2 Price Multiples
- 1PH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1PH is more expensive than 79.13% of the companies in the same industry.
- 1PH's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1PH is more expensive than 63.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.16 | ||
| EV/EBITDA | 24.88 |
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)2.35
PEG (5Y)1.62
EPS Next 2Y11.9%
EPS Next 3Y11.1%
5. Dividend
5.1 Amount
- 1PH has a yearly dividend return of 0.77%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.48, 1PH has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
- The dividend of 1PH is nicely growing with an annual growth rate of 13.82%!
Dividend Growth(5Y)13.82%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1PH pays out 24.15% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 1PH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.15%
EPS Next 2Y11.9%
EPS Next 3Y11.1%
PARKER HANNIFIN CORP / 1PH.MI FAQ
Can you provide the ChartMill fundamental rating for PARKER HANNIFIN CORP?
ChartMill assigns a fundamental rating of 5 / 10 to 1PH.MI.
Can you provide the valuation status for PARKER HANNIFIN CORP?
ChartMill assigns a valuation rating of 1 / 10 to PARKER HANNIFIN CORP (1PH.MI). This can be considered as Overvalued.
What is the profitability of 1PH stock?
PARKER HANNIFIN CORP (1PH.MI) has a profitability rating of 9 / 10.
What is the earnings growth outlook for PARKER HANNIFIN CORP?
The Earnings per Share (EPS) of PARKER HANNIFIN CORP (1PH.MI) is expected to grow by 14.16% in the next year.
Can you provide the dividend sustainability for 1PH stock?
The dividend rating of PARKER HANNIFIN CORP (1PH.MI) is 3 / 10 and the dividend payout ratio is 24.15%.