PARKER HANNIFIN CORP (1PH.MI) Stock Fundamental Analysis
BIT:1PH - Euronext Milan - US7010941042 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1PH. 1PH was compared to 103 industry peers in the Machinery industry. 1PH scores excellent on profitability, but 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
1PH had positive earnings in the past year.
In the past year 1PH had a positive cash flow from operations.
1PH had positive earnings in each of the past 5 years.
Each year in the past 5 years 1PH had a positive operating cash flow.
1.2 Ratios
1PH has a better Return On Assets (11.17%) than 92.45% of its industry peers.
1PH has a better Return On Equity (24.08%) than 90.57% of its industry peers.
1PH's Return On Invested Capital of 14.21% is amongst the best of the industry. 1PH outperforms 91.51% of its industry peers.
1PH had an Average Return On Invested Capital over the past 3 years of 11.38%. This is above the industry average of 8.83%.
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
1PH's Profit Margin of 15.87% is amongst the best of the industry. 1PH outperforms 95.28% of its industry peers.
In the last couple of years the Profit Margin of 1PH has grown nicely.
1PH's Operating Margin of 20.28% is amongst the best of the industry. 1PH outperforms 94.34% of its industry peers.
In the last couple of years the Operating Margin of 1PH has grown nicely.
The Gross Margin of 1PH (36.24%) is comparable to the rest of the industry.
1PH's Gross Margin has improved in the last couple of years.
| 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
1PH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1PH has about the same amount of shares outstanding.
1PH has more shares outstanding than it did 5 years ago.
1PH has a better debt/assets ratio than last year.
2.2 Solvency
1PH has an Altman-Z score of 5.03. 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 5.03, 1PH belongs to the top of the industry, outperforming 95.28% of the companies in the same industry.
1PH has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as 1PH would need 2.74 years to pay back of all of its debts.
1PH has a better Debt to FCF ratio (2.74) than 75.47% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that 1PH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, 1PH perfoms like the industry average, outperforming 43.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.46
WACC9.75%
2.3 Liquidity
1PH has a Current Ratio of 1.06. 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 1.06, 1PH is doing worse than 77.36% 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.
Looking at the Quick ratio, with a value of 0.59, 1PH is doing worse than 83.96% of the companies in the same industry.
| 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 7.04% over the past year.
Measured over the past years, 1PH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.50% on average per year.
Looking at the last year, 1PH shows a small growth in Revenue. The Revenue has grown by 4.53% 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)7.04%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%6.61%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-2.25%
3.2 Future
Based on estimates for the next years, 1PH will show a small growth in Earnings Per Share. The EPS will grow by 7.49% on average per year.
The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y8.43%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
EPS Next 5Y7.49%
Revenue Next Year0.16%
Revenue Next 2Y2.32%
Revenue Next 3Y3.4%
Revenue Next 5Y4.01%
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.
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
A Price/Earnings ratio of 21.02 indicates a rather expensive valuation of 1PH.
The rest of the industry has a similar Price/Earnings ratio as 1PH.
The average S&P500 Price/Earnings ratio is at 27.21. 1PH is valued slightly cheaper when compared to this.
1PH is valuated rather expensively with a Price/Forward Earnings ratio of 18.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PH is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, 1PH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 18.59 |
4.2 Price Multiples
69.81% of the companies in the same industry are cheaper than 1PH, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1PH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.69 | ||
| EV/EBITDA | 16.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PH does not grow enough to justify the current Price/Earnings ratio.
1PH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.49
PEG (5Y)1.27
EPS Next 2Y8.49%
EPS Next 3Y8.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.18%, 1PH has a reasonable but not impressive dividend return.
1PH's Dividend Yield is comparable with the industry average which is at 2.93.
Compared to an average S&P500 Dividend Yield of 2.42, 1PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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
1PH pays out 25.99% 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.
DP25.99%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
BIT:1PH (4/22/2025, 7:00:00 PM)
489.9
+26.5 (+5.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.35%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap63.08B
Analysts81.29
Price Target608.75 (24.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend5.36
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)-17.19%
PT rev (3m)-15.7%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-3.61%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-3.84%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 18.59 | ||
| P/S | 3.59 | ||
| P/FCF | 21.69 | ||
| P/OCF | 19.28 | ||
| P/B | 5.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.2 |
EPS(TTM)23.31
EY4.76%
EPS(NY)26.35
Fwd EY5.38%
FCF(TTM)22.58
FCFY4.61%
OCF(TTM)25.41
OCFY5.19%
SpS136.31
BVpS89.82
TBVpS-32.07
PEG (NY)2.49
PEG (5Y)1.27
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 | 5.03 |
F-Score9
WACC9.75%
ROIC/WACC1.46
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)7.04%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%6.61%
EPS Next Y8.43%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
EPS Next 5Y7.49%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-2.25%
Revenue Next Year0.16%
Revenue Next 2Y2.32%
Revenue Next 3Y3.4%
Revenue Next 5Y4.01%
EBIT growth 1Y6.84%
EBIT growth 3Y17.83%
EBIT growth 5Y13.85%
EBIT Next Year23.54%
EBIT Next 3Y12.84%
EBIT Next 5Y8.69%
FCF growth 1Y49.78%
FCF growth 3Y8.06%
FCF growth 5Y14.22%
OCF growth 1Y47.71%
OCF growth 3Y9.54%
OCF growth 5Y14.36%