PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - FRA:PAR - US7010941042 - Common Stock
629 EUR
-5.8 (-0.91%)
Taking everything into account, PAR scores 5 out of 10 in our fundamental rating. PAR was compared to 103 industry peers in the Machinery industry. While PAR has a great profitability rating, there are some minor concerns on its financial health. PAR has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years PAR always reported a positive cash flow from operatings.
1.2 Ratios
PAR has a better Return On Assets (11.97%) than 94.17% of its industry peers.
With an excellent Return On Equity value of 25.81%, PAR belongs to the best of the industry, outperforming 92.23% of the companies in the same industry.
PAR's Return On Invested Capital of 14.37% is amongst the best of the industry. PAR outperforms 90.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PAR is above the industry average of 8.77%.
The 3 year average ROIC (13.03%) for PAR is below the current ROIC(14.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROIC | 14.37% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)13.03%
ROIC(5y)12.34%
1.3 Margins
PAR's Profit Margin of 17.79% is amongst the best of the industry. PAR outperforms 96.12% of its industry peers.
PAR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.75%, PAR belongs to the best of the industry, outperforming 93.20% of the companies in the same industry.
PAR's Operating Margin has improved in the last couple of years.
PAR has a Gross Margin (36.96%) which is in line with its industry peers.
PAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.75% | ||
| PM (TTM) | 17.79% | ||
| GM | 36.96% |
OM growth 3Y4.16%
OM growth 5Y9.38%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.21%
GM growth 5Y7.79%
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
Compared to 5 years ago, PAR has less shares outstanding
PAR has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of PAR is 2.78, which is a good value as it means it would take PAR, 2.78 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.78, PAR is in the better half of the industry, outperforming 71.84% of the companies in the same industry.
PAR has a Debt/Equity ratio of 0.55. This is a neutral value indicating PAR is somewhat dependend on debt financing.
PAR has a Debt to Equity ratio (0.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.46
WACC9.81%
2.3 Liquidity
A Current Ratio of 1.19 indicates that PAR should not have too much problems paying its short term obligations.
The Current ratio of PAR (1.19) is worse than 71.84% of its industry peers.
A Quick Ratio of 0.71 indicates that PAR may have some problems paying its short term obligations.
PAR has a worse Quick ratio (0.71) than 80.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.76% over the past year.
PAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.50% yearly.
PAR shows a decrease in Revenue. In the last year, the revenue decreased by -0.40%.
PAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.70% yearly.
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 7.66% on average over the next years.
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 Y9.81%
EPS Next 2Y9.5%
EPS Next 3Y8.86%
EPS Next 5Y7.66%
Revenue Next Year4.57%
Revenue Next 2Y5.04%
Revenue Next 3Y5.06%
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 27.22, which means the current valuation is very expensive for PAR.
PAR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. PAR is around the same levels.
With a Price/Forward Earnings ratio of 24.78, PAR is valued on the expensive side.
66.99% of the companies in the same industry are cheaper than PAR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.70. PAR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 24.78 |
4.2 Price Multiples
74.76% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.23 | ||
| EV/EBITDA | 20.52 |
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.
PAR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.77
PEG (5Y)1.33
EPS Next 2Y9.5%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
PAR has a yearly dividend return of 0.94%, which is pretty low.
Compared to an average industry Dividend Yield of 2.88, PAR has a dividend in line with its industry peers.
With a Dividend Yield of 0.94, PAR pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of PAR grows each year by 13.72%, which is quite nice.
Dividend Growth(5Y)13.72%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PAR pays out 24.39% 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.
DP24.39%
EPS Next 2Y9.5%
EPS Next 3Y8.86%
FRA:PAR (9/17/2025, 7:00:00 PM)
629
-5.8 (-0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.31%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap79.68B
Analysts80.61
Price Target678.63 (7.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend5.73
Dividend Growth(5Y)13.72%
DP24.39%
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)3.76%
PT rev (3m)5.94%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-3.75%
EPS NY rev (1m)0.98%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 24.78 | ||
| P/S | 4.75 | ||
| P/FCF | 28.23 | ||
| P/OCF | 24.98 | ||
| P/B | 6.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.52 |
EPS(TTM)23.11
EY3.67%
EPS(NY)25.38
Fwd EY4.04%
FCF(TTM)22.28
FCFY3.54%
OCF(TTM)25.18
OCFY4%
SpS132.38
BVpS91.24
TBVpS-29.25
PEG (NY)2.77
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROCE | 17.4% | ||
| ROIC | 14.37% | ||
| ROICexc | 14.65% | ||
| ROICexgc | 66.17% | ||
| OM | 20.75% | ||
| PM (TTM) | 17.79% | ||
| GM | 36.96% | ||
| FCFM | 16.83% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)13.03%
ROIC(5y)12.34%
ROICexc(3y)13.28%
ROICexc(5y)12.66%
ROICexgc(3y)62.44%
ROICexgc(5y)50.33%
ROCE(3y)16.68%
ROCE(5y)15.67%
ROICexcg growth 3Y40.44%
ROICexcg growth 5Y12.95%
ROICexc growth 3Y8.47%
ROICexc growth 5Y9.14%
OM growth 3Y4.16%
OM growth 5Y9.38%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.21%
GM growth 5Y7.79%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.13% | ||
| Profit Quality | 94.62% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | N/A |
F-Score7
WACC9.81%
ROIC/WACC1.46
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 Y9.81%
EPS Next 2Y9.5%
EPS Next 3Y8.86%
EPS Next 5Y7.66%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
Revenue Next Year4.57%
Revenue Next 2Y5.04%
Revenue Next 3Y5.06%
Revenue Next 5Y5.17%
EBIT growth 1Y4.13%
EBIT growth 3Y12.25%
EBIT growth 5Y17.81%
EBIT Next Year18.88%
EBIT Next 3Y10.13%
EBIT Next 5Y8.67%
FCF growth 1Y11.96%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y11.57%
OCF growth 3Y15.64%
OCF growth 5Y12.77%