PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PAR - US7010941042 - Common Stock
749.8 EUR
-3.4 (-0.45%)
We assign a fundamental rating of 5 out of 10 to PAR. PAR was compared to 109 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.
In the past year PAR had a positive cash flow from operations.
Each year in the past 5 years PAR has been profitable.
PAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.87%, PAR belongs to the top of the industry, outperforming 92.66% of the companies in the same industry.
With an excellent Return On Equity value of 26.43%, PAR belongs to the best of the industry, outperforming 92.66% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.75%, PAR belongs to the top of the industry, outperforming 89.91% of the companies in the same industry.
PAR had an Average Return On Invested Capital over the past 3 years of 12.83%. This is above the industry average of 8.95%.
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 Profit Margin of 18.18%. This is amongst the best in the industry. PAR outperforms 97.25% of its industry peers.
PAR's Profit Margin has improved in the last couple of years.
The Operating Margin of PAR (21.31%) is better than 94.50% of its industry peers.
In the last couple of years the Operating Margin of PAR has grown nicely.
The Gross Margin of PAR (37.20%) 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PAR is creating some value.
The number of shares outstanding for PAR has been reduced compared to 1 year ago.
PAR has less shares outstanding than it did 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 6.11 indicates that PAR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.11, PAR belongs to the top of the industry, outperforming 94.50% 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.
With a decent Debt to FCF ratio value of 3.05, PAR is doing good in the industry, outperforming 70.64% of the companies in the same industry.
PAR has a Debt/Equity ratio of 0.54. This is a neutral value indicating PAR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, PAR perfoms like the industry average, outperforming 40.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.11 |
ROIC/WACC1.59
WACC9.3%
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.
Looking at the Current ratio, with a value of 1.07, PAR is doing worse than 77.98% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that PAR may have some problems paying its short term obligations.
The Quick ratio of PAR (0.61) is worse than 85.32% of its industry peers.
| 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.
PAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.50% yearly.
Looking at the last year, PAR shows a small growth in Revenue. The Revenue has grown by 0.22% in the last 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 9.19% yearly.
The Revenue is expected to grow by 5.48% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.14, which means the current valuation is very expensive for PAR.
PAR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.84, PAR is valued at the same level.
With a Price/Forward Earnings ratio of 25.89, PAR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PAR is valued a bit more expensive than 68.81% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, PAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.14 | ||
| Fwd PE | 25.89 |
4.2 Price Multiples
79.82% of the companies in the same industry are cheaper than PAR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PAR is valued a bit more expensive than the industry average as 67.89% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.94 | ||
| EV/EBITDA | 23.44 |
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)2.22
PEG (5Y)1.52
EPS Next 2Y11.7%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
PAR has a yearly dividend return of 0.81%, which is pretty low.
PAR's Dividend Yield is comparable with the industry average which is at 1.56.
With a Dividend Yield of 0.81, PAR pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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
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 2Y11.7%
EPS Next 3Y10.88%
FRA:PAR (12/23/2025, 7:00:00 PM)
749.8
-3.4 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.92%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap94.62B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.63
Price Target802.46 (7.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend5.72
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)1.43%
PT rev (3m)18.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.69%
EPS NY rev (1m)3.7%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.64%
Revenue NY rev (1m)1.85%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.14 | ||
| Fwd PE | 25.89 | ||
| P/S | 5.57 | ||
| P/FCF | 32.94 | ||
| P/OCF | 29.24 | ||
| P/B | 8.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.44 |
EPS(TTM)24.08
EY3.21%
EPS(NY)28.96
Fwd EY3.86%
FCF(TTM)22.76
FCFY3.04%
OCF(TTM)25.64
OCFY3.42%
SpS134.66
BVpS92.62
TBVpS-34.45
PEG (NY)2.22
PEG (5Y)1.52
Graham Number224.02
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 | 6.11 |
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 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 14.02% in the next year.