PACCAR INC (PCAR)
US6937181088 - Common Stock
Overall PCAR gets a fundamental rating of 6 out of 10. We evaluated PCAR against 131 industry peers in the Machinery industry. While PCAR has a great profitability rating, 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
In the past year PCAR was profitable.
In the past year PCAR had a positive cash flow from operations.
Each year in the past 5 years PCAR has been profitable.
PCAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PCAR has a Return On Assets of 10.88%. This is amongst the best in the industry. PCAR outperforms 84.25% of its industry peers.
With an excellent Return On Equity value of 25.22%, PCAR belongs to the best of the industry, outperforming 90.55% 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 84.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PCAR is in line with the industry average of 10.98%.
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 has a Profit Margin of 13.51%. This is amongst the best in the industry. PCAR outperforms 85.04% of its industry peers.
In the last couple of years the Profit Margin of PCAR has grown nicely.
Looking at the Operating Margin, with a value of 19.17%, PCAR belongs to the top of the industry, outperforming 86.61% of the companies in the same industry.
In the last couple of years the Operating Margin of PCAR has grown nicely.
PCAR has a Gross Margin of 23.07%. This is in the lower half of the industry: PCAR underperforms 66.14% of its industry peers.
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.
The number of shares outstanding for PCAR has been reduced compared to 1 year ago.
Compared to 5 years ago, PCAR has more shares outstanding
The debt/assets ratio for PCAR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.50 indicates that PCAR is not in any danger for bankruptcy at the moment.
PCAR's Altman-Z score of 3.50 is in line compared to the rest of the industry. PCAR outperforms 57.48% 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.
Looking at the Debt to FCF ratio, with a value of 5.59, PCAR is in line with its industry, outperforming 51.97% of the companies in the same industry.
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 Debt to Equity ratio of 0.83. This is in the lower half of the industry: PCAR underperforms 77.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.64
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.83 indicates that PCAR should not have too much problems paying its short term obligations.
The Current ratio of PCAR (1.83) is worse than 65.35% 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.
The Quick ratio of PCAR (1.41) is comparable to the rest of the industry.
| 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%.
PCAR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.04% yearly.
Looking at the last year, PCAR shows a small growth in Revenue. The Revenue has grown by 1.91% in the last year.
Measured over the past years, PCAR shows a quite strong growth in Revenue. The Revenue has been growing by 8.38% on average per year.
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
Based on estimates for the next years, PCAR will show a decrease in Earnings Per Share. The EPS will decrease by -3.55% on average per year.
The Revenue is expected to grow by 0.48% on average over the next years.
EPS Next Y-15.62%
EPS Next 2Y-9.3%
EPS Next 3Y-0.81%
EPS Next 5Y-3.55%
Revenue Next Year-1.37%
Revenue Next 2Y-0.96%
Revenue Next 3Y3.37%
Revenue Next 5Y0.48%
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
With a Price/Earnings ratio of 12.54, PCAR is valued correctly.
PCAR's Price/Earnings ratio is rather cheap when compared to the industry. PCAR is cheaper than 85.04% of the companies in the same industry.
PCAR is valuated cheaply when we compare the Price/Earnings ratio to 28.53, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.19 indicates a correct valuation of PCAR.
PCAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PCAR is cheaper than 77.95% of the companies in the same industry.
PCAR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCAR indicates a rather cheap valuation: PCAR is cheaper than 81.89% of the companies listed in the same industry.
69.29% of the companies in the same industry are more expensive than PCAR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.2 | ||
| EV/EBITDA | 8.56 |
4.3 Compensation for Growth
The excellent profitability rating of PCAR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.39
EPS Next 2Y-9.3%
EPS Next 3Y-0.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, PCAR has a reasonable but not impressive dividend return.
PCAR's Dividend Yield is a higher than the industry average which is at 1.54.
Compared to an average S&P500 Dividend Yield of 2.22, PCAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
The dividend of PCAR is nicely growing with an annual growth rate of 8.66%!
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-9.3%
EPS Next 3Y-0.81%
PACCAR INC
NASDAQ:PCAR (11/15/2024, 8:00:00 PM)
After market: 112.26 0 (0%)112.26
-2.8 (-2.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap58.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 14.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 25.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.17% | ||
| PM (TTM) | 13.51% | ||
| GM | 23.07% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.11%
EPS 3Y37.01%
EPS 5Y
EPS Q2Q%
EPS Next Y-15.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.91%
Revenue growth 3Y23.32%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y