PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PAR - US7010941042 - Common Stock
724 EUR
+4 (+0.56%)
We assign a fundamental rating of 5 out of 10 to PAR. PAR was compared to 108 industry peers in the Machinery industry. PAR has an excellent profitability rating, 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
In the past year PAR was profitable.
PAR had a positive operating cash flow in the past year.
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
PAR has a better Return On Assets (11.87%) than 93.52% of its industry peers.
PAR has a Return On Equity of 26.43%. This is amongst the best in the industry. PAR outperforms 92.59% of its industry peers.
The Return On Invested Capital of PAR (14.75%) is better than 89.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAR is above the industry average of 9.48%.
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 97.22% 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 93.52% of the companies in the same industry.
In the last couple of years the Operating Margin of PAR has grown nicely.
PAR has a Gross Margin (37.20%) which is comparable to the rest of the 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.
The number of shares outstanding for PAR has been reduced compared to 1 year ago.
The number of shares outstanding for PAR has been reduced compared to 5 years ago.
PAR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.90 indicates that PAR is not in any danger for bankruptcy at the moment.
PAR has a Altman-Z score of 5.90. This is amongst the best in the industry. PAR outperforms 94.44% of its industry peers.
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.
PAR has a Debt to FCF ratio of 3.05. This is in the better half of the industry: PAR outperforms 71.30% 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 of 0.54. This is comparable to the rest of the industry: PAR outperforms 43.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 5.9 |
ROIC/WACC1.61
WACC9.19%
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 Current ratio of 1.07. This is in the lower half of the industry: PAR underperforms 75.93% 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: 83.33% 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.
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.
The Revenue has been growing slightly by 0.22% in the past 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)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.
The Revenue is expected to grow by 5.17% on average over the next years.
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.
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
The Price/Earnings ratio is 29.38, which means the current valuation is very expensive for PAR.
The rest of the industry has a similar Price/Earnings ratio as PAR.
Compared to an average S&P500 Price/Earnings ratio of 25.47, PAR is valued at the same level.
With a Price/Forward Earnings ratio of 25.40, PAR can be considered very expensive at the moment.
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 68.52% of the companies listed in the same industry.
PAR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.38 | ||
| Fwd PE | 25.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAR is valued a bit more expensive than 76.85% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAR indicates a slightly more expensive valuation: PAR is more expensive than 64.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.18 | ||
| EV/EBITDA | 22.28 |
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)2.95
PEG (5Y)1.43
EPS Next 2Y9.55%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, PAR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.47, PAR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, PAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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.
PAR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.15%
EPS Next 2Y9.55%
EPS Next 3Y8.78%
FRA:PAR (11/21/2025, 7:00:00 PM)
724
+4 (+0.56%)
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 Cap91.61B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target791.11 (9.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend5.86
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)4.51%
EPS NQ rev (3m)4.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)2.09%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.38 | ||
| Fwd PE | 25.4 | ||
| P/S | 5.27 | ||
| P/FCF | 31.18 | ||
| P/OCF | 27.67 | ||
| P/B | 7.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.28 |
EPS(TTM)24.64
EY3.4%
EPS(NY)28.5
Fwd EY3.94%
FCF(TTM)23.22
FCFY3.21%
OCF(TTM)26.16
OCFY3.61%
SpS137.4
BVpS94.51
TBVpS-35.15
PEG (NY)2.95
PEG (5Y)1.43
Graham Number228.9
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 | 5.9 |
F-Score7
WACC9.19%
ROIC/WACC1.61
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 1Y6.17%
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 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.