PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PAR - US7010941042 - Common Stock
745.2 EUR
+2.2 (+0.3%)
Taking everything into account, PAR scores 5 out of 10 in our fundamental rating. 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 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.
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 93.52% 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 92.59% 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 89.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PAR is above the industry average of 8.99%.
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
PAR has a better Profit Margin (18.18%) than 97.22% of its industry peers.
PAR's Profit Margin has improved in the last couple of years.
PAR has a better Operating Margin (21.31%) than 93.52% of its industry peers.
PAR's Operating Margin has improved in the last couple of years.
PAR has a Gross Margin (37.20%) 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 | 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.
The number of shares outstanding for PAR has been reduced compared to 5 years ago.
PAR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.03 indicates that PAR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.03, PAR belongs to the top of the industry, outperforming 94.44% 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.
The Debt to FCF ratio of PAR (3.05) is better than 71.30% of its industry peers.
PAR has a Debt/Equity ratio of 0.54. This is a neutral value indicating PAR is somewhat dependend on debt financing.
PAR has a Debt to Equity ratio (0.54) which is in line with 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
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.
PAR has a worse Current ratio (1.07) than 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
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
PAR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.54% yearly.
PAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.17% yearly.
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.
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
PAR is valuated quite expensively with a Price/Earnings ratio of 30.42.
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 26.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.30 indicates a quite expensive valuation of PAR.
Based on the Price/Forward Earnings ratio, PAR is valued a bit more expensive than the industry average as 68.52% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of PAR to the average of the S&P500 Index (36.12), we can say PAR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 26.3 |
4.2 Price Multiples
76.85% 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 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.
PAR has an outstanding profitability rating, which 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
PAR has a yearly dividend return of 0.88%, which is pretty low.
PAR's Dividend Yield is comparable with the industry average which is at 2.47.
Compared to an average S&P500 Dividend Yield of 2.41, PAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 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.