PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
FRA:PAR - Deutsche Boerse Ag - US7010941042 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to PAR. PAR was compared to 106 industry peers in the Machinery industry. PAR scores excellent on profitability, but there are some minor concerns on its financial health. PAR has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years PAR has always been profitable.
Each year in the past 5 years PAR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.17%, PAR belongs to the best of the industry, outperforming 91.51% of the companies in the same industry.
PAR has a Return On Equity of 24.08%. This is amongst the best in the industry. PAR outperforms 89.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.21%, PAR belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.
PAR had an Average Return On Invested Capital over the past 3 years of 11.38%. This is above the industry average of 8.60%.
The last Return On Invested Capital (14.21%) for PAR 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
PAR has a better Profit Margin (15.87%) than 92.45% of its industry peers.
In the last couple of years the Profit Margin of PAR has grown nicely.
PAR has a better Operating Margin (20.28%) than 93.40% of its industry peers.
PAR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 36.24%, PAR is in line with its industry, outperforming 44.34% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PAR is still creating some value.
The number of shares outstanding for PAR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, PAR has more shares outstanding
Compared to 1 year ago, PAR has an improved debt to assets ratio.
2.2 Solvency
PAR has an Altman-Z score of 5.24. This indicates that PAR is financially healthy and has little risk of bankruptcy at the moment.
PAR has a Altman-Z score of 5.24. This is amongst the best in the industry. PAR outperforms 96.23% of its industry peers.
PAR has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as PAR would need 2.74 years to pay back of all of its debts.
PAR has a Debt to FCF ratio of 2.74. This is in the better half of the industry: PAR outperforms 74.53% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that PAR is somewhat dependend on debt financing.
The Debt to Equity ratio of PAR (0.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 5.24 |
ROIC/WACC1.46
WACC9.74%
2.3 Liquidity
PAR has a Current Ratio of 1.06. This is a normal value and indicates that PAR is financially healthy and should not expect problems in meeting its short term obligations.
PAR has a worse Current ratio (1.06) than 78.30% of its industry peers.
PAR has a Quick Ratio of 1.06. This is a bad value and indicates that PAR is not financially healthy enough and could expect problems in meeting its short term obligations.
PAR's Quick ratio of 0.59 is on the low side compared to the rest of the industry. PAR is outperformed by 84.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
PAR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.84%.
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 small growth in Revenue. In the last year, the Revenue has grown by 0.41%.
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)7.84%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%6.18%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-1.63%
3.2 Future
The Earnings Per Share is expected to grow by 7.49% 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 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
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
PAR is valuated rather expensively with a Price/Earnings ratio of 22.93.
Compared to the rest of the industry, the Price/Earnings ratio of PAR is on the same level as its industry peers.
PAR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
The Price/Forward Earnings ratio is 19.95, which indicates a rather expensive current valuation of PAR.
PAR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PAR to the average of the S&P500 Index (21.38), we can say PAR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.93 | ||
| Fwd PE | 19.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAR indicates a slightly more expensive valuation: PAR is more expensive than 71.70% of the companies listed in the same industry.
PAR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.27 | ||
| EV/EBITDA | 17.28 |
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)2.72
PEG (5Y)1.39
EPS Next 2Y8.49%
EPS Next 3Y8.5%
5. Dividend
5.1 Amount
PAR has a Yearly Dividend Yield of 1.09%.
The stock price of PAR dropped by -23.76% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
PAR's Dividend Yield is comparable with the industry average which is at 3.07.
With a Dividend Yield of 1.09, PAR pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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 25.99% 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.
DP25.99%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
FRA:PAR (4/28/2025, 7:00:00 PM)
525
-0.8 (-0.15%)
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 Cap67.60B
Analysts82.58
Price Target619.24 (17.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend5.36
Dividend Growth(5Y)13.91%
DP25.99%
Div Incr Years1
Div Non Decr Years1
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)-15.55%
PT rev (3m)-14.36%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-3.63%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.93 | ||
| Fwd PE | 19.95 | ||
| P/S | 3.86 | ||
| P/FCF | 23.27 | ||
| P/OCF | 20.69 | ||
| P/B | 5.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.28 |
EPS(TTM)22.9
EY4.36%
EPS(NY)26.31
Fwd EY5.01%
FCF(TTM)22.56
FCFY4.3%
OCF(TTM)25.38
OCFY4.83%
SpS136.14
BVpS89.71
TBVpS-32.03
PEG (NY)2.72
PEG (5Y)1.39
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 | 5.24 |
F-Score9
WACC9.74%
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)7.84%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%6.18%
EPS Next Y8.43%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
EPS Next 5Y7.49%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-1.63%
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%