PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - FRA:PAR - US7010941042 - Common Stock
723.4 EUR
-5 (-0.69%)
We assign a fundamental rating of 5 out of 10 to PAR. PAR was compared to 102 industry peers in the Machinery industry. PAR scores excellent on profitability, but 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.
Each year in the past 5 years PAR has been profitable.
In the past 5 years PAR always reported a positive cash flow from operatings.
1.2 Ratios
PAR has a Return On Assets of 11.87%. This is amongst the best in the industry. PAR outperforms 94.50% of its industry peers.
PAR has a better Return On Equity (26.43%) than 91.74% of its industry peers.
PAR has a better Return On Invested Capital (14.66%) than 89.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAR is above the industry average of 8.41%.
The 3 year average ROIC (12.83%) for PAR is below the current ROIC(14.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROIC | 14.66% |
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
The Profit Margin of PAR (18.18%) is better than 97.25% of its industry peers.
PAR's Profit Margin has improved in the last couple of years.
PAR's Operating Margin of 21.18% is amongst the best of the industry. PAR outperforms 93.58% of its industry peers.
In the last couple of years the Operating Margin of PAR has grown nicely.
Looking at the Gross Margin, with a value of 37.15%, PAR is in line with its industry, outperforming 44.04% of the companies in the same industry.
In the last couple of years the Gross Margin of PAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.18% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.15% |
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
The number of shares outstanding for PAR has been reduced compared to 5 years ago.
The debt/assets ratio for PAR has been reduced compared to a year ago.
2.2 Solvency
PAR has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as PAR would need 3.05 years to pay back of all of its debts.
The Debt to FCF ratio of PAR (3.05) is better than 70.64% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that PAR is somewhat dependend on debt financing.
PAR has a worse Debt to Equity ratio (0.54) than 60.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | N/A |
ROIC/WACC1.55
WACC9.43%
2.3 Liquidity
PAR has a Current Ratio of 1.07. 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 1.07, PAR is not doing good in the industry: 78.90% of the companies in the same industry are doing better.
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.
The Quick ratio of PAR (0.61) is worse than 85.32% of its industry peers.
| 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
PAR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.22%.
PAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.70% yearly.
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
PAR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.54% yearly.
PAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.17% yearly.
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.78%
EPS Next 5Y8.54%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.2%
Revenue Next 5Y5.17%
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
Based on the Price/Earnings ratio of 29.70, the valuation of PAR can be described as expensive.
PAR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PAR to the average of the S&P500 Index (25.89), we can say PAR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 25.66, the valuation of PAR can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAR indicates a slightly more expensive valuation: PAR is more expensive than 71.56% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. PAR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.7 | ||
| Fwd PE | 25.66 |
4.2 Price Multiples
PAR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PAR is more expensive than 78.90% of the companies in the same industry.
66.97% of the companies in the same industry are cheaper than PAR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.5 | ||
| EV/EBITDA | 22.61 |
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.
PAR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)1.45
EPS Next 2Y9.55%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
PAR has a yearly dividend return of 0.86%, which is pretty low.
PAR's Dividend Yield is slightly below the industry average, which is at 2.49.
Compared to an average S&P500 Dividend Yield of 2.44, PAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 3Y8.78%
FRA:PAR (11/14/2025, 7:00:00 PM)
723.4
-5 (-0.69%)
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 Cap91.54B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target696.16 (-3.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend5.79
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)0.6%
PT rev (3m)6.44%
EPS NQ rev (1m)2.57%
EPS NQ rev (3m)2.92%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)1.89%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.7 | ||
| Fwd PE | 25.66 | ||
| P/S | 5.32 | ||
| P/FCF | 31.5 | ||
| P/OCF | 27.96 | ||
| P/B | 7.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.61 |
EPS(TTM)24.36
EY3.37%
EPS(NY)28.19
Fwd EY3.9%
FCF(TTM)22.97
FCFY3.17%
OCF(TTM)25.88
OCFY3.58%
SpS135.89
BVpS93.47
TBVpS-34.76
PEG (NY)2.98
PEG (5Y)1.45
Graham Number226.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROCE | 17.75% | ||
| ROIC | 14.66% | ||
| ROICexc | 14.95% | ||
| ROICexgc | 77.43% | ||
| OM | 21.18% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.15% | ||
| 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 | 74.03% | ||
| Profit Quality | 92.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | N/A |
F-Score7
WACC9.43%
ROIC/WACC1.55
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 3Y8.78%
EPS Next 5Y8.54%
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 3Y5.2%
Revenue Next 5Y5.17%
EBIT growth 1Y5.5%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y10.48%
EBIT Next 5Y9.13%
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 4 / 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.