PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PAR - US7010941042 - Common Stock
789.2 EUR
-6 (-0.75%)
Taking everything into account, PAR scores 5 out of 10 in our fundamental rating. PAR was compared to 114 industry peers in the Machinery industry. While PAR has a great profitability rating, there are some minor concerns on its financial health. PAR is quite expensive at the moment. 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.
In the past 5 years PAR has always been profitable.
In the past 5 years PAR always reported a positive cash flow from operatings.
1.2 Ratios
PAR's Return On Assets of 11.87% is amongst the best of the industry. PAR outperforms 92.98% of its industry peers.
PAR has a better Return On Equity (26.43%) than 92.11% 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 89.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PAR is above the industry average of 9.14%.
The last Return On Invested Capital (14.75%) for PAR is above the 3 year average (12.83%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 18.18%, PAR belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
PAR's Profit Margin has improved in the last couple of years.
PAR has a better Operating Margin (21.31%) than 94.74% of its industry peers.
PAR's Operating Margin has improved in the last couple of years.
PAR has a Gross Margin of 37.20%. This is comparable to the rest of the industry: PAR outperforms 43.86% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PAR is 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 6.30 indicates that PAR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.30, PAR belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
The Debt to FCF ratio of PAR is 3.05, which is a good value as it means it would take PAR, 3.05 years of fcf income to pay off 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 68.42% of its industry peers.
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 is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.3 |
ROIC/WACC1.59
WACC9.3%
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 Current ratio of 1.07. This is in the lower half of the industry: PAR underperforms 79.82% of its industry peers.
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.
PAR has a Quick ratio of 0.61. This is amonst the worse of the industry: PAR underperforms 85.09% 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.
PAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.50% yearly.
The Revenue has been growing slightly by 0.22% in the past year.
The Revenue has been growing slightly by 7.70% on average over the past years.
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 9.19% yearly.
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 Year6.86%
Revenue Next 2Y6.85%
Revenue Next 3Y6.46%
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.
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
A Price/Earnings ratio of 32.37 indicates a quite expensive valuation of PAR.
PAR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.25, PAR is valued at the same level.
PAR is valuated quite expensively with a Price/Forward Earnings ratio of 26.91.
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 70.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, PAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 26.91 |
4.2 Price Multiples
80.70% of the companies in the same industry are cheaper than PAR, based on the Enterprise Value to EBITDA ratio.
PAR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. PAR is more expensive than 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.25 | ||
| EV/EBITDA | 24.46 |
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)2.31
PEG (5Y)1.58
EPS Next 2Y11.7%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, PAR is not a good candidate for dividend investing.
PAR's Dividend Yield is slightly below the industry average, which is at 1.55.
Compared to an average S&P500 Dividend Yield of 1.92, PAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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 2Y11.7%
EPS Next 3Y10.88%
FRA:PAR (1/12/2026, 7:00:00 PM)
789.2
-6 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.97%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap99.59B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.61
Price Target802.46 (1.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend5.8
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)0.99%
PT rev (3m)15.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.72%
EPS NY rev (1m)0.02%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 26.91 | ||
| P/S | 5.79 | ||
| P/FCF | 34.25 | ||
| P/OCF | 30.4 | ||
| P/B | 8.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.46 |
EPS(TTM)24.38
EY3.09%
EPS(NY)29.32
Fwd EY3.72%
FCF(TTM)23.04
FCFY2.92%
OCF(TTM)25.96
OCFY3.29%
SpS136.34
BVpS93.78
TBVpS-34.88
PEG (NY)2.31
PEG (5Y)1.58
Graham Number226.81
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 | 6.3 |
F-Score7
WACC9.3%
ROIC/WACC1.59
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 Year6.86%
Revenue Next 2Y6.85%
Revenue Next 3Y6.46%
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 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 14.02% 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%.