PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PAR - US7010941042 - Common Stock
745.2 EUR
+2.2 (+0.3%)
We assign a fundamental rating of 5 out of 10 to PAR. PAR was compared to 108 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 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.
In the past year PAR had a positive cash flow from operations.
PAR had positive earnings in each of the past 5 years.
PAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.87%, PAR belongs to the best of the industry, outperforming 93.52% of the companies in the same industry.
The Return On Equity of PAR (26.43%) is better than 92.59% of its industry peers.
With an excellent Return On Invested Capital value of 14.75%, PAR belongs to the best of the industry, outperforming 89.81% 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 8.99%.
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
With an excellent Profit Margin value of 18.18%, PAR belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
In the last couple of years the Profit Margin of PAR has grown nicely.
PAR's Operating Margin of 21.31% is amongst the best of the industry. PAR outperforms 93.52% of its industry peers.
In the last couple of years the Operating Margin of PAR has grown nicely.
With a Gross Margin value of 37.20%, PAR perfoms like the industry average, outperforming 46.30% 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 | 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.
PAR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PAR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.03 indicates that PAR is not in any danger for bankruptcy at the moment.
PAR has a Altman-Z score of 6.03. 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.
A Debt/Equity ratio of 0.54 indicates that 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 | 6.03 |
ROIC/WACC1.61
WACC9.17%
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 75.93% 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.
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
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.
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.
Looking at the last year, PAR shows a small growth in Revenue. The Revenue has grown by 0.22% 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)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
Based on estimates for the next years, PAR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.54% on average per year.
Based on estimates for the next years, PAR will show a small growth in Revenue. The Revenue will grow by 5.17% on average per year.
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
Based on the Price/Earnings ratio of 30.42, the valuation of PAR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as PAR.
PAR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
PAR is valuated quite expensively with a Price/Forward Earnings ratio of 26.30.
68.52% of the companies in the same industry are cheaper than PAR, based on the Price/Forward Earnings ratio.
PAR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 26.3 |
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 76.85% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PAR is valued a bit more expensive than 65.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.27 | ||
| EV/EBITDA | 23 |
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)3.06
PEG (5Y)1.48
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.
With a Dividend Yield of 0.88, PAR pays less dividend than the S&P500 average, which is at 2.41.
| 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.
The dividend of PAR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.15%
EPS Next 2Y9.55%
EPS Next 3Y8.78%
FRA:PAR (11/27/2025, 7:00:00 PM)
745.2
+2.2 (+0.3%)
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 Cap94.30B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target791.11 (6.16%)
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 | 30.42 | ||
| Fwd PE | 26.3 | ||
| P/S | 5.45 | ||
| P/FCF | 32.27 | ||
| P/OCF | 28.65 | ||
| P/B | 7.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23 |
EPS(TTM)24.5
EY3.29%
EPS(NY)28.34
Fwd EY3.8%
FCF(TTM)23.09
FCFY3.1%
OCF(TTM)26.01
OCFY3.49%
SpS136.62
BVpS93.97
TBVpS-34.95
PEG (NY)3.06
PEG (5Y)1.48
Graham Number227.6
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 | 6.03 |
F-Score7
WACC9.17%
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.