PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PAR - US7010941042 - Common Stock
757 EUR
+7.6 (+1.01%)
PAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 108 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. While showing a medium growth rate, PAR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year PAR was profitable.
PAR had a positive operating cash flow in the past year.
PAR had positive earnings in each of the past 5 years.
Each year in the past 5 years PAR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.87%, PAR belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
With an excellent Return On Equity value of 26.43%, PAR belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.75%, PAR belongs to the best of the industry, outperforming 88.89% 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 9.47%.
The last Return On Invested Capital (14.75%) for PAR 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
PAR has a better Profit Margin (18.18%) than 97.22% of its industry peers.
In the last couple of years the Profit Margin of PAR has grown nicely.
PAR has a Operating Margin of 21.31%. This is amongst the best in the industry. PAR outperforms 94.44% of its industry peers.
PAR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 37.20%, PAR perfoms like the industry average, outperforming 46.30% of the companies in the same industry.
PAR'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 PAR is still creating some value.
Compared to 1 year ago, PAR has less shares outstanding
Compared to 5 years ago, PAR has less shares outstanding
The debt/assets ratio for PAR has been reduced compared to a year ago.
2.2 Solvency
PAR has an Altman-Z score of 6.03. This indicates that PAR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.03, PAR belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
The Debt to FCF ratio of PAR is 3.05, which is a good value as it means it would take PAR, 3.05 years of fcf income to pay off all of its debts.
PAR has a better Debt to FCF ratio (3.05) than 72.22% of its industry peers.
PAR has a Debt/Equity ratio of 0.54. This is a neutral value indicating PAR is somewhat dependend on debt financing.
PAR has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.03 |
ROIC/WACC1.58
WACC9.31%
2.3 Liquidity
A Current Ratio of 1.07 indicates that PAR should not have too much problems paying its short term obligations.
PAR has a worse Current ratio (1.07) than 77.78% of its industry peers.
PAR has a Quick Ratio of 1.07. This is a bad value and indicates that PAR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.61, PAR is doing worse than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
PAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.73%, which is quite good.
The Earnings Per Share has been growing by 20.50% on average over the past years. This is a very strong growth
Looking at the last year, PAR shows a small growth in Revenue. The Revenue has grown by 0.22% in the last year.
The Revenue has been growing slightly by 7.70% on average over the past years.
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
The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
PAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
EPS Next 5Y9.19%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.79%
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.
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
PAR is valuated quite expensively with a Price/Earnings ratio of 31.11.
PAR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.46. PAR is around the same levels.
PAR is valuated quite expensively with a Price/Forward Earnings ratio of 26.90.
PAR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PAR is more expensive than 74.07% of the companies in the same industry.
PAR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.11 | ||
| Fwd PE | 26.9 |
4.2 Price Multiples
79.63% 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 a bit more expensive when compared to the industry. PAR is more expensive than 67.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.92 | ||
| EV/EBITDA | 23.02 |
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)3.13
PEG (5Y)1.52
EPS Next 2Y9.55%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, PAR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.40, PAR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, PAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
On average, the dividend of PAR grows each year by 13.82%, which is quite nice.
Dividend Growth(5Y)13.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PAR pays out 24.15% of its income as dividend. This is a sustainable payout ratio.
The dividend of PAR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.15%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
FRA:PAR (12/5/2025, 7:00:00 PM)
757
+7.6 (+1.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap95.53B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target791.11 (4.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend5.83
Dividend Growth(5Y)13.82%
DP24.15%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.44%
Min EPS beat(2)5.1%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)3.23%
Min EPS beat(4)0.28%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)4.1%
EPS beat(12)11
Avg EPS beat(12)5.66%
EPS beat(16)15
Avg EPS beat(16)6.07%
Revenue beat(2)0
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)2
Avg Revenue beat(12)-1.4%
Revenue beat(16)4
Avg Revenue beat(16)-0.95%
PT rev (1m)14.32%
PT rev (3m)15.73%
EPS NQ rev (1m)4.6%
EPS NQ rev (3m)4.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)2.11%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.11 | ||
| Fwd PE | 26.9 | ||
| P/S | 5.56 | ||
| P/FCF | 32.92 | ||
| P/OCF | 29.22 | ||
| P/B | 8.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.02 |
EPS(TTM)24.33
EY3.21%
EPS(NY)28.14
Fwd EY3.72%
FCF(TTM)23
FCFY3.04%
OCF(TTM)25.91
OCFY3.42%
SpS136.06
BVpS93.59
TBVpS-34.81
PEG (NY)3.13
PEG (5Y)1.52
Graham Number226.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROCE | 17.86% | ||
| ROIC | 14.75% | ||
| ROICexc | 15.05% | ||
| ROICexgc | 77.92% | ||
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% | ||
| FCFM | 16.9% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
ROICexc(3y)13.07%
ROICexc(5y)12.53%
ROICexgc(3y)57.33%
ROICexgc(5y)47.27%
ROCE(3y)16.85%
ROCE(5y)15.77%
ROICexgc growth 3Y28.45%
ROICexgc growth 5Y7.06%
ROICexc growth 3Y6.87%
ROICexc growth 5Y8.17%
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
F-Score7
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 47.11% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.64% | ||
| Profit Quality | 92.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 6.03 |
F-Score7
WACC9.31%
ROIC/WACC1.58
Cap/Depr(3y)45.89%
Cap/Depr(5y)42.63%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.82%
Profit Quality(3y)108.11%
Profit Quality(5y)125.58%
High Growth Momentum
Growth
EPS 1Y (TTM)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.79%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y12.98%
EBIT Next 5Y8.49%
FCF growth 1Y21.88%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y20.22%
OCF growth 3Y15.64%
OCF growth 5Y12.77%
PARKER HANNIFIN CORP / PAR.DE FAQ
What is the fundamental rating for PAR stock?
ChartMill assigns a fundamental rating of 5 / 10 to PAR.DE.
What is the valuation status of PARKER HANNIFIN CORP (PAR.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to PARKER HANNIFIN CORP (PAR.DE). This can be considered as Overvalued.
How profitable is PARKER HANNIFIN CORP (PAR.DE) stock?
PARKER HANNIFIN CORP (PAR.DE) has a profitability rating of 9 / 10.
Can you provide the financial health for PAR stock?
The financial health rating of PARKER HANNIFIN CORP (PAR.DE) is 5 / 10.
Can you provide the expected EPS growth for PAR stock?
The Earnings per Share (EPS) of PARKER HANNIFIN CORP (PAR.DE) is expected to grow by 9.95% in the next year.