PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:PAR • US7010941042
820.2 EUR
+14.6 (+1.81%)
Last: Feb 3, 2026, 07:00 PM
PAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 112 industry peers in the Machinery industry. While PAR has a great profitability rating, there are some minor concerns on its financial health. PAR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- PAR had positive earnings in the past year.
- PAR had a positive operating cash flow in the past year.
- 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 11.87% is amongst the best of the industry. PAR outperforms 93.75% of its industry peers.
- PAR's Return On Equity of 26.43% is amongst the best of the industry. PAR outperforms 92.86% of its industry peers.
- With an excellent Return On Invested Capital value of 14.75%, PAR belongs to the best of the industry, outperforming 91.96% 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 8.91%.
- The 3 year average ROIC (12.83%) for PAR is below the current ROIC(14.75%), indicating increased profibility in the last year.
| 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 Profit Margin of 18.18%. This is amongst the best in the industry. PAR outperforms 98.21% of its industry peers.
- In the last couple of years the Profit Margin of PAR has grown nicely.
- Looking at the Operating Margin, with a value of 21.31%, PAR belongs to the top of the industry, outperforming 95.54% of the companies in the same industry.
- PAR's Operating Margin has improved in the last couple of years.
- PAR has a Gross Margin (37.20%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of PAR has grown nicely.
| 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
- The number of shares outstanding for PAR has been reduced compared to 5 years ago.
- Compared to 1 year ago, PAR has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.49 indicates that PAR is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.49, PAR belongs to the top of the industry, outperforming 95.54% of the companies in the same industry.
- 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.
- With a decent Debt to FCF ratio value of 3.05, PAR is doing good in the industry, outperforming 68.75% of the companies in the same industry.
- A Debt/Equity ratio of 0.54 indicates that PAR is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.54, PAR perfoms like the industry average, outperforming 40.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.49 |
ROIC/WACC1.55
WACC9.53%
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 79.46% of its industry peers.
- A Quick Ratio of 0.61 indicates that PAR may have some problems paying its short term obligations.
- PAR has a worse Quick ratio (0.61) than 84.82% 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 13.42%, which is quite good.
- Measured over the past years, PAR shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.50% on average per year.
- Looking at the last year, PAR shows a decrease in Revenue. The Revenue has decreased by -0.40% in the last year.
- PAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.70% yearly.
EPS 1Y (TTM)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%9.1%
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 9.19% yearly.
- The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y14.16%
EPS Next 2Y11.9%
EPS Next 3Y11.1%
EPS Next 5Y9.19%
Revenue Next Year6.92%
Revenue Next 2Y7.09%
Revenue Next 3Y6.64%
Revenue Next 5Y5.48%
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.
- 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
- With a Price/Earnings ratio of 32.81, PAR can be considered very expensive at the moment.
- PAR's Price/Earnings ratio is in line with the industry average.
- PAR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.18.
- A Price/Forward Earnings ratio of 28.25 indicates a quite expensive valuation of PAR.
- PAR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PAR is more expensive than 71.43% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of PAR to the average of the S&P500 Index (25.51), we can say PAR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 28.25 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAR indicates a rather expensive valuation: PAR more expensive than 81.25% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.08 | ||
| EV/EBITDA | 25.49 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- PAR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.32
PEG (5Y)1.6
EPS Next 2Y11.9%
EPS Next 3Y11.1%
5. Dividend
5.1 Amount
- PAR has a yearly dividend return of 0.76%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.53, PAR is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.83, PAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
- The dividend of PAR is nicely growing with an annual growth rate of 13.82%!
Dividend Growth(5Y)13.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 24.15% of the earnings are spent on dividend by PAR. This is a low number and 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 2Y11.9%
EPS Next 3Y11.1%
FRA:PAR (2/3/2026, 7:00:00 PM)
820.2
+14.6 (+1.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-29 2026-04-29/bmo
Inst Owners89.97%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap103.50B
Revenue(TTM)19.85B
Net Income(TTM)3.64B
Analysts80.61
Price Target814.95 (-0.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend5.66
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)1.56%
PT rev (3m)16.17%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)4.76%
EPS NY rev (1m)0.12%
EPS NY rev (3m)3.83%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 28.25 | ||
| P/S | 6.1 | ||
| P/FCF | 36.08 | ||
| P/OCF | 32.02 | ||
| P/B | 8.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.49 |
EPS(TTM)25
EY3.05%
EPS(NY)29.03
Fwd EY3.54%
FCF(TTM)22.73
FCFY2.77%
OCF(TTM)25.61
OCFY3.12%
SpS134.5
BVpS92.51
TBVpS-34.41
PEG (NY)2.32
PEG (5Y)1.6
Graham Number228.12
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 | 6.49 |
F-Score7
WACC9.53%
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)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
EPS Next Y14.16%
EPS Next 2Y11.9%
EPS Next 3Y11.1%
EPS Next 5Y9.19%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%9.1%
Revenue Next Year6.92%
Revenue Next 2Y7.09%
Revenue Next 3Y6.64%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year24.93%
EBIT Next 3Y13.76%
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 for PAR stock?
ChartMill assigns a valuation rating of 2 / 10 to PARKER HANNIFIN CORP (PAR.DE). This can be considered as Overvalued.
What is the profitability of PAR stock?
PARKER HANNIFIN CORP (PAR.DE) has a profitability rating of 9 / 10.
What is the earnings growth outlook for PARKER HANNIFIN CORP?
The Earnings per Share (EPS) of PARKER HANNIFIN CORP (PAR.DE) is expected to grow by 14.16% in the next year.
Is the dividend of PARKER HANNIFIN CORP sustainable?
The dividend rating of PARKER HANNIFIN CORP (PAR.DE) is 3 / 10 and the dividend payout ratio is 24.15%.