PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PAR - US7010941042 - Common Stock
813 EUR
-1.6 (-0.2%)
We assign a fundamental rating of 5 out of 10 to PAR. PAR was compared to 115 industry peers in the Machinery industry. PAR scores excellent on profitability, but 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.
- In the past year PAR had a positive cash flow from operations.
- In the past 5 years PAR has always been profitable.
- PAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of PAR (11.87%) is better than 92.17% of its industry peers.
- PAR's Return On Equity of 26.43% is amongst the best of the industry. PAR outperforms 92.17% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.75%, PAR belongs to the top of the industry, outperforming 89.57% 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 8.97%.
- 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 better Profit Margin (18.18%) than 96.52% of its industry peers.
- PAR's Profit Margin has improved in the last couple of years.
- PAR's Operating Margin of 21.31% is amongst the best of the industry. PAR outperforms 93.04% 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 37.20%, PAR is in line with its industry, outperforming 45.22% 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.
- PAR has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PAR has less shares outstanding
- PAR has a better debt/assets ratio than last year.
2.2 Solvency
- PAR has an Altman-Z score of 6.39. 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 6.39, PAR belongs to the top of the industry, outperforming 95.65% 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.
- Looking at the Debt to FCF ratio, with a value of 3.05, PAR is in the better half of the industry, outperforming 70.43% of the companies in the same industry.
- 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 | 6.39 |
ROIC/WACC1.54
WACC9.59%
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.
- PAR has a worse Current ratio (1.07) than 79.13% of its industry peers.
- A Quick Ratio of 0.61 indicates that PAR may have some problems paying its short term obligations.
- With a Quick ratio value of 0.61, PAR is not doing good in the industry: 84.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.73% over the past year.
- 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%.
- Measured over the past years, PAR shows a small growth in Revenue. The Revenue has been growing by 7.70% on average per year.
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.
- Based on estimates for the next years, PAR will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
EPS Next Y14.02%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
EPS Next 5Y9.19%
Revenue Next Year6.92%
Revenue Next 2Y7.12%
Revenue Next 3Y6.67%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 33.28, PAR can be considered very expensive at the moment.
- PAR's Price/Earnings ratio is in line with the industry average.
- PAR is valuated rather expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 27.67, which means the current valuation is very expensive for PAR.
- Based on the Price/Forward Earnings ratio, PAR is valued a bit more expensive than the industry average as 67.83% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, PAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.28 | ||
| Fwd PE | 27.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PAR is valued a bit more expensive than the industry average as 79.13% of the companies are valued more cheaply.
- PAR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. PAR is more expensive than 64.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.21 | ||
| EV/EBITDA | 24.96 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of PAR may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)1.62
EPS Next 2Y11.7%
EPS Next 3Y10.88%
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 1.50, PAR has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.84, 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
- 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 2Y11.7%
EPS Next 3Y10.88%
FRA:PAR (1/19/2026, 7:00:00 PM)
813
-1.6 (-0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)01-29 2026-01-29/bmo
Inst Owners89.97%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap102.59B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.61
Price Target814.95 (0.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend5.81
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)2.56%
PT rev (3m)17.77%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)4.59%
EPS NY rev (1m)0.02%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.28 | ||
| Fwd PE | 27.67 | ||
| P/S | 5.95 | ||
| P/FCF | 35.21 | ||
| P/OCF | 31.25 | ||
| P/B | 8.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.96 |
EPS(TTM)24.43
EY3%
EPS(NY)29.39
Fwd EY3.61%
FCF(TTM)23.09
FCFY2.84%
OCF(TTM)26.02
OCFY3.2%
SpS136.64
BVpS93.98
TBVpS-34.95
PEG (NY)2.37
PEG (5Y)1.62
Graham Number227.29
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 | 6.39 |
F-Score7
WACC9.59%
ROIC/WACC1.54
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 Y14.02%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year6.92%
Revenue Next 2Y7.12%
Revenue Next 3Y6.67%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year24.49%
EBIT Next 3Y13.2%
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 1 / 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 14.02% 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%.