PACCAR INC (PCAR) Stock Fundamental Analysis
NASDAQ:PCAR - Nasdaq - US6937181088 - Common Stock
We assign a fundamental rating of 6 out of 10 to PCAR. PCAR was compared to 131 industry peers in the Machinery industry. While PCAR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PCAR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PCAR had positive earnings in the past year.
In the past year PCAR had a positive cash flow from operations.
Each year in the past 5 years PCAR has been profitable.
In the past 5 years PCAR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.88%, PCAR belongs to the best of the industry, outperforming 82.68% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.22%, PCAR belongs to the top of the industry, outperforming 89.76% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.37%, PCAR belongs to the best of the industry, outperforming 83.46% of the companies in the same industry.
PCAR had an Average Return On Invested Capital over the past 3 years of 11.69%. This is in line with the industry average of 11.19%.
The 3 year average ROIC (11.69%) for PCAR is below the current ROIC(14.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 25.22% | ||
| ROIC | 14.37% |
ROA(3y)8.88%
ROA(5y)7.93%
ROE(3y)22.65%
ROE(5y)21.01%
ROIC(3y)11.69%
ROIC(5y)10.34%
1.3 Margins
PCAR's Profit Margin of 13.51% is amongst the best of the industry. PCAR outperforms 84.25% of its industry peers.
PCAR's Profit Margin has improved in the last couple of years.
PCAR has a Operating Margin of 19.17%. This is amongst the best in the industry. PCAR outperforms 85.83% of its industry peers.
PCAR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 23.07%, PCAR is not doing good in the industry: 67.72% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of PCAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.17% | ||
| PM (TTM) | 13.51% | ||
| GM | 23.07% |
OM growth 3Y25%
OM growth 5Y8.43%
PM growth 3Y23.64%
PM growth 5Y6.99%
GM growth 3Y6.33%
GM growth 5Y3.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PCAR is still creating some value.
Compared to 1 year ago, PCAR has less shares outstanding
Compared to 5 years ago, PCAR has more shares outstanding
PCAR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.47 indicates that PCAR is not in any danger for bankruptcy at the moment.
PCAR has a Altman-Z score of 3.47. This is comparable to the rest of the industry: PCAR outperforms 53.54% of its industry peers.
PCAR has a debt to FCF ratio of 5.59. This is a neutral value as PCAR would need 5.59 years to pay back of all of its debts.
PCAR has a Debt to FCF ratio of 5.59. This is comparable to the rest of the industry: PCAR outperforms 50.39% of its industry peers.
PCAR has a Debt/Equity ratio of 0.83. This is a neutral value indicating PCAR is somewhat dependend on debt financing.
PCAR has a worse Debt to Equity ratio (0.83) than 77.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.58
WACC9.08%
2.3 Liquidity
PCAR has a Current Ratio of 1.83. This is a normal value and indicates that PCAR is financially healthy and should not expect problems in meeting its short term obligations.
PCAR has a worse Current ratio (1.83) than 64.57% of its industry peers.
PCAR has a Quick Ratio of 1.41. This is a normal value and indicates that PCAR is financially healthy and should not expect problems in meeting its short term obligations.
PCAR has a Quick ratio (1.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
PCAR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.11%.
Measured over the past years, PCAR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.04% on average per year.
The Revenue has been growing slightly by 1.91% in the past year.
PCAR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.38% yearly.
EPS 1Y (TTM)3.11%
EPS 3Y37.01%
EPS 5Y9.04%
EPS Q2Q%-20.94%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y23.32%
Revenue growth 5Y8.38%
Sales Q2Q%-11.41%
3.2 Future
PCAR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.80% yearly.
Based on estimates for the next years, PCAR will show a small growth in Revenue. The Revenue will grow by 1.95% on average per year.
EPS Next Y-15.36%
EPS Next 2Y-9.24%
EPS Next 3Y-0.62%
EPS Next 5Y-3.8%
Revenue Next Year-1.32%
Revenue Next 2Y-1%
Revenue Next 3Y3.23%
Revenue Next 5Y1.95%
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.
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 12.33, which indicates a correct valuation of PCAR.
Based on the Price/Earnings ratio, PCAR is valued cheaper than 85.83% of the companies in the same industry.
PCAR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.94.
Based on the Price/Forward Earnings ratio of 13.92, the valuation of PCAR can be described as correct.
Based on the Price/Forward Earnings ratio, PCAR is valued cheaply inside the industry as 81.89% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PCAR to the average of the S&P500 Index (24.11), we can say PCAR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCAR is valued cheaply inside the industry as 82.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PCAR is valued a bit cheaper than 73.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.84 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
The excellent profitability rating of PCAR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.36
EPS Next 2Y-9.24%
EPS Next 3Y-0.62%
5. Dividend
5.1 Amount
PCAR has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
PCAR's Dividend Yield is a higher than the industry average which is at 1.65.
With a Dividend Yield of 1.21, PCAR pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
On average, the dividend of PCAR grows each year by 8.66%, which is quite nice.
PCAR has been paying a dividend for at least 10 years, so it has a reliable track record.
PCAR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.66%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
48.27% of the earnings are spent on dividend by PCAR. This is a bit on the high side, but may be sustainable.
DP48.27%
EPS Next 2Y-9.24%
EPS Next 3Y-0.62%
PACCAR INC
NASDAQ:PCAR (1/17/2025, 8:20:09 PM)
After market: 110.33 0 (0%)110.33
+0.85 (+0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners71.5%
Inst Owner Change-0.51%
Ins Owners1.2%
Ins Owner Change1.15%
Market Cap57.85B
Analysts68.15
Price Target118.71 (7.6%)
Short Float %1.64%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend2.33
Dividend Growth(5Y)8.66%
DP48.27%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.31%
Min EPS beat(2)-2.3%
Max EPS beat(2)-0.31%
EPS beat(4)2
Avg EPS beat(4)4.39%
Min EPS beat(4)-2.3%
Max EPS beat(4)19.11%
EPS beat(8)6
Avg EPS beat(8)8.68%
EPS beat(12)10
Avg EPS beat(12)9.1%
EPS beat(16)11
Avg EPS beat(16)5.9%
Revenue beat(2)1
Avg Revenue beat(2)1%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)3.26%
Revenue beat(4)3
Avg Revenue beat(4)3.17%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)6.62%
Revenue beat(8)7
Avg Revenue beat(8)4.93%
Revenue beat(12)11
Avg Revenue beat(12)6.51%
Revenue beat(16)15
Avg Revenue beat(16)6.34%
PT rev (1m)0.29%
PT rev (3m)5.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 13.92 | ||
| P/S | 1.66 | ||
| P/FCF | 20.84 | ||
| P/OCF | 13.2 | ||
| P/B | 3.1 | ||
| P/tB | 3.1 | ||
| EV/EBITDA | 8.43 |
EPS(TTM)8.95
EY8.11%
EPS(NY)7.92
Fwd EY7.18%
FCF(TTM)5.29
FCFY4.8%
OCF(TTM)8.36
OCFY7.58%
SpS66.44
BVpS35.6
TBVpS35.6
PEG (NY)N/A
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 25.22% | ||
| ROCE | 18.1% | ||
| ROIC | 14.37% | ||
| ROICexc | 19.11% | ||
| ROICexgc | 22.02% | ||
| OM | 19.17% | ||
| PM (TTM) | 13.51% | ||
| GM | 23.07% | ||
| FCFM | 7.97% |
ROA(3y)8.88%
ROA(5y)7.93%
ROE(3y)22.65%
ROE(5y)21.01%
ROIC(3y)11.69%
ROIC(5y)10.34%
ROICexc(3y)15.41%
ROICexc(5y)13.5%
ROICexgc(3y)17.79%
ROICexgc(5y)15.44%
ROCE(3y)16.6%
ROCE(5y)14.88%
ROICexcg growth 3Y43.54%
ROICexcg growth 5Y10.32%
ROICexc growth 3Y42.25%
ROICexc growth 5Y9.23%
OM growth 3Y25%
OM growth 5Y8.43%
PM growth 3Y23.64%
PM growth 5Y6.99%
GM growth 3Y6.33%
GM growth 5Y3.8%
F-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 171.01% | ||
| Cap/Sales | 4.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.53% | ||
| Profit Quality | 58.97% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 3.47 |
F-Score6
WACC9.08%
ROIC/WACC1.58
Cap/Depr(3y)164.46%
Cap/Depr(5y)166.5%
Cap/Sales(3y)5.12%
Cap/Sales(5y)6.36%
Profit Quality(3y)49.22%
Profit Quality(5y)57.76%
High Growth Momentum
Growth
EPS 1Y (TTM)3.11%
EPS 3Y37.01%
EPS 5Y9.04%
EPS Q2Q%-20.94%
EPS Next Y-15.36%
EPS Next 2Y-9.24%
EPS Next 3Y-0.62%
EPS Next 5Y-3.8%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y23.32%
Revenue growth 5Y8.38%
Sales Q2Q%-11.41%
Revenue Next Year-1.32%
Revenue Next 2Y-1%
Revenue Next 3Y3.23%
Revenue Next 5Y1.95%
EBIT growth 1Y11.85%
EBIT growth 3Y54.15%
EBIT growth 5Y17.51%
EBIT Next Year1.49%
EBIT Next 3Y4.19%
EBIT Next 5Y-5.01%
FCF growth 1Y118.24%
FCF growth 3Y29.47%
FCF growth 5Y23%
OCF growth 1Y55.68%
OCF growth 3Y11.94%
OCF growth 5Y6.97%