PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - FRA:PAR - US7010941042 - Common Stock
671.8 EUR
-2.2 (-0.33%)
Taking everything into account, PAR scores 5 out of 10 in our fundamental rating. PAR was compared to 107 industry peers in the Machinery industry. While PAR belongs to the best of the industry regarding profitability, 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
In the past year PAR was profitable.
PAR had a positive operating cash flow in the past year.
PAR had positive earnings in each of the past 5 years.
In the past 5 years PAR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.97%, PAR belongs to the best of the industry, outperforming 94.39% of the companies in the same industry.
The Return On Equity of PAR (25.81%) is better than 92.52% of its industry peers.
PAR's Return On Invested Capital of 14.58% is amongst the best of the industry. PAR outperforms 90.65% of its industry peers.
PAR had an Average Return On Invested Capital over the past 3 years of 12.83%. This is above the industry average of 8.77%.
The last Return On Invested Capital (14.58%) for PAR is above the 3 year average (12.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROIC | 14.58% |
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 17.79%. This is amongst the best in the industry. PAR outperforms 97.20% of its industry peers.
PAR's Profit Margin has improved in the last couple of years.
PAR has a Operating Margin of 21.06%. This is amongst the best in the industry. PAR outperforms 93.46% of its industry peers.
In the last couple of years the Operating Margin of PAR has grown nicely.
PAR's Gross Margin of 37.01% is in line compared to the rest of the industry. PAR outperforms 45.79% of its industry peers.
In the last couple of years the Gross Margin of PAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% |
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.
The debt/assets ratio for PAR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.95 indicates that PAR is not in any danger for bankruptcy at the moment.
PAR has a better Altman-Z score (5.95) than 95.33% of its industry peers.
PAR has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as PAR would need 2.78 years to pay back of all of its debts.
PAR's Debt to FCF ratio of 2.78 is fine compared to the rest of the industry. PAR outperforms 72.90% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that PAR is somewhat dependend on debt financing.
PAR has a Debt to Equity ratio of 0.55. This is comparable to the rest of the industry: PAR outperforms 41.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 5.95 |
ROIC/WACC1.56
WACC9.37%
2.3 Liquidity
PAR has a Current Ratio of 1.19. 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 (1.19) than 70.09% of its industry peers.
PAR has a Quick Ratio of 1.19. 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 worse Quick ratio (0.71) than 78.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
PAR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.76%.
The Earnings Per Share has been growing by 20.50% on average over the past years. This is a very strong growth
Looking at the last year, PAR shows a decrease in Revenue. The Revenue has decreased by -0.40% in the last year.
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)7.76%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%13.59%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
3.2 Future
The Earnings Per Share is expected to grow by 8.57% on average over the next years. This is quite good.
PAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.19% yearly.
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.85%
EPS Next 5Y8.57%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.17%
Revenue Next 5Y5.19%
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
PAR is valuated quite expensively with a Price/Earnings ratio of 28.37.
Compared to the rest of the industry, the Price/Earnings ratio of PAR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PAR to the average of the S&P500 Index (26.11), we can say PAR is valued inline with the index average.
A Price/Forward Earnings ratio of 25.80 indicates a quite expensive valuation of PAR.
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 71.03% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. PAR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 25.8 |
4.2 Price Multiples
76.64% 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 60.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.4 | ||
| EV/EBITDA | 21.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PAR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PAR may justify a higher PE ratio.
PEG (NY)2.85
PEG (5Y)1.38
EPS Next 2Y9.55%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, PAR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.62, PAR has a dividend in line with its industry peers.
With a Dividend Yield of 0.93, PAR pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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
24.38% of the earnings are spent on dividend by PAR. This is a low number and sustainable payout ratio.
PAR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.38%
EPS Next 2Y9.55%
EPS Next 3Y8.85%
FRA:PAR (10/31/2025, 7:00:00 PM)
671.8
-2.2 (-0.33%)
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 Cap85.01B
Revenue(TTM)19.85B
Net Income(TTM)3.53B
Analysts80
Price Target701.51 (4.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend5.84
Dividend Growth(5Y)13.82%
DP24.38%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.69%
Min EPS beat(2)0.28%
Max EPS beat(2)5.1%
EPS beat(4)3
Avg EPS beat(4)1.29%
Min EPS beat(4)-1.98%
Max EPS beat(4)5.1%
EPS beat(8)7
Avg EPS beat(8)4.49%
EPS beat(12)11
Avg EPS beat(12)6.05%
EPS beat(16)15
Avg EPS beat(16)6.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)-0.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.44%
Revenue beat(8)0
Avg Revenue beat(8)-2.59%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)3.37%
PT rev (3m)7.24%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.37 | ||
| Fwd PE | 25.8 | ||
| P/S | 4.95 | ||
| P/FCF | 29.4 | ||
| P/OCF | 26.01 | ||
| P/B | 7.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.04 |
EPS(TTM)23.68
EY3.52%
EPS(NY)26.04
Fwd EY3.88%
FCF(TTM)22.85
FCFY3.4%
OCF(TTM)25.83
OCFY3.84%
SpS135.77
BVpS93.58
TBVpS-30
PEG (NY)2.85
PEG (5Y)1.38
Graham Number223.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROCE | 17.66% | ||
| ROIC | 14.58% | ||
| ROICexc | 14.88% | ||
| ROICexgc | 67.17% | ||
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% | ||
| FCFM | 16.83% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 10.89 | ||
| Cash Conversion | 74.21% | ||
| Profit Quality | 94.62% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 5.95 |
F-Score7
WACC9.37%
ROIC/WACC1.56
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)7.76%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%13.59%
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.85%
EPS Next 5Y8.57%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.17%
Revenue Next 5Y5.19%
EBIT growth 1Y5.71%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y10.52%
EBIT Next 5Y9.14%
FCF growth 1Y11.96%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y11.57%
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.