PAR Fundamental Analysis - PARKER HANNIFIN CORP

Fundamental Rating

Overall PAR gets a fundamental rating of 5 out of 10. We evaluated PAR against 106 industry peers in the Machinery industry. While PAR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PAR does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

In the past year PAR was profitable.

In the past year PAR had a positive cash flow from operations.

Each year in the past 5 years PAR has been profitable.

PAR had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

PAR's Return On Assets of 11.73% is amongst the best of the industry. PAR outperforms 93.40% of its industry peers.

The Return On Equity of PAR (25.34%) is better than 91.51% of its industry peers.

Looking at the Return On Invested Capital, with a value of 13.75%, PAR belongs to the top of the industry, outperforming 91.51% of the companies in the same industry.

The Average Return On Invested Capital over the past 3 years for PAR is above the industry average of 8.48%.

The 3 year average ROIC (11.38%) for PAR is below the current ROIC(13.75%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	11.73%
ROE	25.34%
ROIC	13.75%

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 PAR (17.14%) is better than 96.23% of its industry peers.

PAR's Profit Margin has improved in the last couple of years.

With an excellent Operating Margin value of 20.63%, PAR belongs to the best of the industry, outperforming 93.40% of the companies in the same industry.

PAR's Operating Margin has improved in the last couple of years.

PAR has a Gross Margin of 36.64%. This is comparable to the rest of the industry: PAR outperforms 45.28% of its industry peers.

PAR's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	20.63%
PM (TTM)	17.14%
GM	36.64%

OM growth 3Y5.61%

OM growth 5Y6.57%

PM growth 3Y5.45%

PM growth 5Y6.21%

GM growth 3Y2.6%

GM growth 5Y7.21%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

PAR 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, PAR has about the same amount of shares outstanding.

PAR has more shares outstanding than it did 5 years ago.

The debt/assets ratio for PAR has been reduced compared to a year ago.

2.2 Solvency

PAR has an Altman-Z score of 5.77. This indicates that PAR is financially healthy and has little risk of bankruptcy at the moment.

PAR has a better Altman-Z score (5.77) than 94.34% of its industry peers.

PAR has a debt to FCF ratio of 3.00. This is a good value and a sign of high solvency as PAR would need 3.00 years to pay back of all of its debts.

PAR's Debt to FCF ratio of 3.00 is fine compared to the rest of the industry. PAR outperforms 77.36% of its industry peers.

A Debt/Equity ratio of 0.55 indicates that PAR is somewhat dependend on debt financing.

PAR has a Debt to Equity ratio (0.55) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.55
Debt/FCF	3
Altman-Z	5.77

ROIC/WACC1.43

WACC9.63%

2.3 Liquidity

PAR has a Current Ratio of 1.21. This is a normal value and indicates that PAR is financially healthy and should not expect problems in meeting its short term obligations.

With a Current ratio value of 1.21, PAR is not doing good in the industry: 75.47% of the companies in the same industry are doing better.

A Quick Ratio of 0.70 indicates that PAR may have some problems paying its short term obligations.

Looking at the Quick ratio, with a value of 0.70, PAR is doing worse than 82.08% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.21
Quick Ratio	0.7

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.04% over the past year.

PAR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.50% yearly.

PAR shows a decrease in Revenue. In the last year, the revenue decreased by -0.23%.

Measured over the past years, PAR shows a small growth in Revenue. The Revenue has been growing by 6.83% on average per year.

EPS 1Y (TTM)7.04%

EPS 3Y19.18%

EPS 5Y16.5%

EPS Q2Q%6.61%

Revenue 1Y (TTM)-0.23%

Revenue growth 3Y11.58%

Revenue growth 5Y6.83%

Sales Q2Q%-2.25%

3.2 Future

The Earnings Per Share is expected to grow by 6.84% on average over the next years.

Based on estimates for the next years, PAR will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.

EPS Next Y8.29%

EPS Next 2Y8.16%

EPS Next 3Y8.31%

EPS Next 5Y6.84%

Revenue Next Year-0.51%

Revenue Next 2Y1.82%

Revenue Next 3Y3.09%

Revenue Next 5Y3.81%

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 27.03 indicates a quite expensive valuation of PAR.

The rest of the industry has a similar Price/Earnings ratio as PAR.

When comparing the Price/Earnings ratio of PAR to the average of the S&P500 Index (27.30), we can say PAR is valued inline with the index average.

Based on the Price/Forward Earnings ratio of 24.06, the valuation of PAR can be described as rather expensive.

68.87% of the companies in the same industry are cheaper than PAR, based on the Price/Forward Earnings ratio.

When comparing the Price/Forward Earnings ratio of PAR to the average of the S&P500 Index (21.76), we can say PAR is valued inline with the index average.

		Industry Rank	Sector Rank
PE	27.03
Fwd PE	24.06

4.2 Price Multiples

73.58% of the companies in the same industry are cheaper than PAR, based on the Enterprise Value to EBITDA ratio.

PAR's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	29.22
EV/EBITDA	20.21

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PAR does not grow enough to justify the current Price/Earnings ratio.

The excellent profitability rating of PAR may justify a higher PE ratio.

PEG (NY)3.26

PEG (5Y)1.64

EPS Next 2Y8.16%

EPS Next 3Y8.31%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.00%, PAR has a reasonable but not impressive dividend return.

PAR's Dividend Yield is comparable with the industry average which is at 2.89.

With a Dividend Yield of 1.00, PAR pays less dividend than the S&P500 average, which is at 2.37.

		Industry Rank	Sector Rank
Dividend Yield	1%

5.2 History

On average, the dividend of PAR grows each year by 13.91%, which is quite nice.

Dividend Growth(5Y)13.91%

Div Incr Years1

Div Non Decr Years1

5.3 Sustainability

PAR pays out 24.78% of its income as dividend. This is a sustainable payout ratio.

PAR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP24.78%

EPS Next 2Y8.16%

EPS Next 3Y8.31%

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PARKER HANNIFIN CORP

FRA:PAR (7/11/2025, 7:00:00 PM)

610.4

-4.2 (-0.68%)

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupCapital Goods

GICS IndustryMachinery

Earnings (Last)05-01 2025-05-01/bmo

Earnings (Next)07-31 2025-07-31/amc

Inst Owners90.24%

Inst Owner ChangeN/A

Ins Owners0.17%

Ins Owner ChangeN/A

Market Cap78.00B

Analysts80.63

Price Target638.01 (4.52%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1%

Yearly Dividend5.17

Dividend Growth(5Y)13.91%

DP24.78%

Div Incr Years1

Div Non Decr Years1

Ex-DateN/A

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)1.02%

Min EPS beat(2)0.28%

Max EPS beat(2)1.76%

EPS beat(4)3

Avg EPS beat(4)1.44%

Min EPS beat(4)-1.98%

Max EPS beat(4)5.69%

EPS beat(8)7

Avg EPS beat(8)4.81%

EPS beat(12)11

Avg EPS beat(12)6.22%

EPS beat(16)14

Avg EPS beat(16)6.05%

Revenue beat(2)0

Avg Revenue beat(2)-3.78%

Min Revenue beat(2)-4.13%

Max Revenue beat(2)-3.42%

Revenue beat(4)0

Avg Revenue beat(4)-2.82%

Min Revenue beat(4)-4.13%

Max Revenue beat(4)-0.9%

Revenue beat(8)0

Avg Revenue beat(8)-2.69%

Revenue beat(12)4

Avg Revenue beat(12)-1.01%

Revenue beat(16)5

Avg Revenue beat(16)-1.03%

PT rev (1m)-0.59%

PT rev (3m)-8.65%

EPS NQ rev (1m)0.02%

EPS NQ rev (3m)-2.8%

EPS NY rev (1m)0.04%

EPS NY rev (3m)-0.19%

Revenue NQ rev (1m)-0.06%

Revenue NQ rev (3m)-2.38%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-0.71%

Valuation

		Industry Rank	Sector Rank
PE	27.03
Fwd PE	24.06
P/S	4.61
P/FCF	29.22
P/OCF	25.75
P/B	6.82
P/tB	N/A
EV/EBITDA	20.21

EPS(TTM)22.58

EY3.7%

EPS(NY)25.37

Fwd EY4.16%

FCF(TTM)20.89

FCFY3.42%

OCF(TTM)23.7

OCFY3.88%

SpS132.3

BVpS89.5

TBVpS-29.69

PEG (NY)3.26

PEG (5Y)1.64

Profitability

		Industry Rank	Sector Rank
ROA	11.73%
ROE	25.34%
ROCE	17.53%
ROIC	13.75%
ROICexc	13.99%
ROICexgc	63.29%
OM	20.63%
PM (TTM)	17.14%
GM	36.64%
FCFM	15.79%

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-Score8

Asset Turnover0.68

Health

		Industry Rank	Sector Rank
Debt/Equity	0.55
Debt/FCF	3
Debt/EBITDA	1.49
Cap/Depr	46.34%
Cap/Sales	2.13%
Interest Coverage	250
Cash Conversion	71.03%
Profit Quality	92.11%
Current Ratio	1.21
Quick Ratio	0.7
Altman-Z	5.77

F-Score8

WACC9.63%

ROIC/WACC1.43

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 Y8.29%

EPS Next 2Y8.16%

EPS Next 3Y8.31%

EPS Next 5Y6.84%

Revenue 1Y (TTM)-0.23%

Revenue growth 3Y11.58%

Revenue growth 5Y6.83%

Sales Q2Q%-2.25%

Revenue Next Year-0.51%

Revenue Next 2Y1.82%

Revenue Next 3Y3.09%

Revenue Next 5Y3.81%

EBIT growth 1Y4.72%

EBIT growth 3Y17.83%

EBIT growth 5Y13.85%

EBIT Next Year23.82%

EBIT Next 3Y12.42%

EBIT Next 5Y8.11%

FCF growth 1Y33.3%

FCF growth 3Y8.06%

FCF growth 5Y14.22%

OCF growth 1Y31.91%

OCF growth 3Y9.54%

OCF growth 5Y14.36%

PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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