PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PAR - US7010941042 - Common Stock
753.2 EUR
+9.6 (+1.29%)
We assign a fundamental rating of 5 out of 10 to PAR. PAR was compared to 110 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
With an excellent Return On Assets value of 11.87%, PAR belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
The Return On Equity of PAR (26.43%) is better than 92.73% of its industry peers.
PAR has a Return On Invested Capital of 14.75%. This is amongst the best in the industry. PAR outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAR is above the industry average of 8.83%.
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 97.27% of the companies in the same industry.
In the last couple of years the Profit Margin of PAR has grown nicely.
The Operating Margin of PAR (21.31%) is better than 94.55% 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 44.55% 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
PAR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PAR has been reduced compared to 1 year ago.
Compared to 5 years ago, PAR has less shares outstanding
The debt/assets ratio for PAR has been reduced compared to a year ago.
2.2 Solvency
PAR has an Altman-Z score of 6.11. This indicates that PAR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PAR (6.11) is better than 94.55% of its industry peers.
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 70.91% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that PAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, PAR is doing worse than 60.00% 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
A Current Ratio of 1.07 indicates that PAR should not have too much problems paying its short term obligations.
PAR's Current ratio of 1.07 is on the low side compared to the rest of the industry. PAR is outperformed by 78.18% of its industry peers.
A Quick Ratio of 0.61 indicates that PAR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.61, PAR is doing worse than 84.55% of the companies in the same industry.
| 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.
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.
PAR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.22%.
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
The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y14%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
EPS Next 5Y9.19%
Revenue Next Year6.84%
Revenue Next 2Y6.84%
Revenue Next 3Y6.43%
Revenue Next 5Y5.48%
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 31.18, the valuation of PAR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PAR is on the same level as its industry peers.
PAR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.94, the valuation of PAR can be described as expensive.
Based on the Price/Forward Earnings ratio, PAR is valued a bit more expensive than the industry average as 71.82% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.93, PAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.18 | ||
| Fwd PE | 25.94 |
4.2 Price Multiples
80.00% 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 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.98 | ||
| EV/EBITDA | 23.46 |
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)2.23
PEG (5Y)1.52
EPS Next 2Y11.64%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, PAR is not a good candidate for dividend investing.
PAR's Dividend Yield is comparable with the industry average which is at 1.55.
With a Dividend Yield of 0.83, PAR pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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.
PAR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.15%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
FRA:PAR (12/22/2025, 7:00:00 PM)
753.2
+9.6 (+1.29%)
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 Cap95.05B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.63
Price Target794.58 (5.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend5.76
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)14.14%
PT rev (3m)17.09%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)4.67%
EPS NY rev (1m)3.68%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)1.83%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.18 | ||
| Fwd PE | 25.94 | ||
| P/S | 5.57 | ||
| P/FCF | 32.98 | ||
| P/OCF | 29.27 | ||
| P/B | 8.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.46 |
EPS(TTM)24.16
EY3.21%
EPS(NY)29.03
Fwd EY3.85%
FCF(TTM)22.84
FCFY3.03%
OCF(TTM)25.73
OCFY3.42%
SpS135.15
BVpS92.96
TBVpS-34.57
PEG (NY)2.23
PEG (5Y)1.52
Graham Number224.79
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%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year6.84%
Revenue Next 2Y6.84%
Revenue Next 3Y6.43%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year24.47%
EBIT Next 3Y13.18%
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% in the next year.