PARKER HANNIFIN CORP (1PH.MI) Stock Fundamental Analysis
Europe - BIT:1PH - US7010941042 - Common Stock
489.9 EUR
+26.5 (+5.72%)
We assign a fundamental rating of 5 out of 10 to 1PH. 1PH was compared to 103 industry peers in the Machinery industry. While 1PH has a great profitability rating, there are some minor concerns on its financial health. 1PH is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1PH had positive earnings in the past year.
1PH had a positive operating cash flow in the past year.
In the past 5 years 1PH has always been profitable.
1PH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1PH's Return On Assets of 11.17% is amongst the best of the industry. 1PH outperforms 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 8.77%.
The last Return On Invested Capital (14.21%) for 1PH is above the 3 year average (11.38%), which is a sign of increasing profitability.
| 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.
With an excellent Operating Margin value of 20.28%, 1PH belongs to the best of the industry, outperforming 94.34% 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 36.24%. This is comparable to the rest of the industry: 1PH outperforms 44.34% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1PH is creating some value.
The number of shares outstanding for 1PH remains at a similar level compared to 1 year ago.
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
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.
1PH has a Altman-Z score of 5.03. This is amongst the best in the industry. 1PH outperforms 95.28% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.74, 1PH is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that 1PH is somewhat dependend on debt financing.
1PH has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: 1PH outperforms 43.40% of its industry peers.
| 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.
The Current ratio of 1PH (1.06) is worse than 77.36% of its industry peers.
1PH has a Quick Ratio of 1.06. 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 (0.59) is worse than 83.96% 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 7.04% over the past year.
The Earnings Per Share has been growing by 16.50% on average over the past years. This is quite good.
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.
Based on estimates for the next years, 1PH will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
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
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
A Price/Earnings ratio of 21.02 indicates a rather expensive valuation of 1PH.
Compared to the rest of the industry, the Price/Earnings ratio of 1PH is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.41, 1PH is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.59, the valuation of 1PH can be described as rather expensive.
1PH's Price/Forward Earnings ratio is in line with the industry average.
1PH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.88.
| 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.
1PH's Price/Free Cash Flow ratio is in line with the industry average.
| 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 an expensive valuation of the company.
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
1PH has a Yearly Dividend Yield of 1.18%. Purely for dividend investing, there may be better candidates out there.
1PH's Dividend Yield is comparable with the industry average which is at 2.88.
Compared to an average S&P500 Dividend Yield of 2.38, 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
25.99% of the earnings are spent on dividend by 1PH. This is a low number and 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%