PACCAR INC (PCAR)
US6937181088 - Common Stock
We assign a fundamental rating of 6 out of 10 to PCAR. PCAR was compared to 132 industry peers in the Machinery industry. While PCAR has a great profitability rating, there are some minor concerns on its financial health. PCAR is not valued too expensively and it also shows a decent growth rate.
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.
PCAR had positive earnings in each of the past 5 years.
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 83.08% of its industry peers.
The Return On Equity of PCAR (25.22%) is better than 89.23% of its industry peers.
PCAR has a better Return On Invested Capital (14.37%) than 83.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PCAR is in line with the industry average of 10.90%.
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
The Profit Margin of PCAR (13.51%) is better than 84.62% of its industry peers.
In the last couple of years the Profit Margin of PCAR has grown nicely.
PCAR's Operating Margin of 19.17% is amongst the best of the industry. PCAR outperforms 86.15% of its industry peers.
PCAR's Operating Margin has improved in the last couple of years.
PCAR's Gross Margin of 23.07% is on the low side compared to the rest of the industry. PCAR is outperformed by 66.15% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PCAR is creating some value.
PCAR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PCAR has been increased compared to 5 years ago.
PCAR has a worse debt/assets ratio than last year.
2.2 Solvency
PCAR has an Altman-Z score of 3.44. This indicates that PCAR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PCAR (3.44) is comparable to the rest of the industry.
The Debt to FCF ratio of PCAR is 5.59, which is a neutral value as it means it would take PCAR, 5.59 years of fcf income to pay off all of its debts.
PCAR has a Debt to FCF ratio (5.59) which is in line with its industry peers.
A Debt/Equity ratio of 0.83 indicates that PCAR is somewhat dependend on debt financing.
PCAR's Debt to Equity ratio of 0.83 is on the low side compared to the rest of the industry. PCAR is outperformed by 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.68
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.83 indicates that PCAR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.83, PCAR is doing worse than 63.08% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that PCAR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.41, PCAR perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.11% over the past year.
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.
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
The Earnings Per Share is expected to decrease by -3.80% on average over the next years.
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-15.59%
EPS Next 2Y-9.46%
EPS Next 3Y-0.35%
EPS Next 5Y-3.8%
Revenue Next Year-1.03%
Revenue Next 2Y-0.96%
Revenue Next 3Y3.26%
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
Based on the Price/Earnings ratio of 11.77, the valuation of PCAR can be described as reasonable.
PCAR's Price/Earnings ratio is rather cheap when compared to the industry. PCAR is cheaper than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, PCAR is valued rather cheaply.
The Price/Forward Earnings ratio is 13.36, which indicates a correct valuation of PCAR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PCAR indicates a rather cheap valuation: PCAR is cheaper than 80.77% of the companies listed in the same industry.
PCAR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCAR is valued cheaply inside the industry as 82.31% of the companies are valued more expensively.
70.00% 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 | 19.89 | ||
| EV/EBITDA | 8.24 |
4.3 Compensation for Growth
PCAR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.3
EPS Next 2Y-9.46%
EPS Next 3Y-0.35%
5. Dividend
5.1 Amount
PCAR has a Yearly Dividend Yield of 1.23%. 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 1.61.
Compared to an average S&P500 Dividend Yield of 2.24, PCAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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-9.46%
EPS Next 3Y-0.35%
PACCAR INC
NASDAQ:PCAR (12/20/2024, 8:00:00 PM)
After market: 105.32 0 (0%)105.32
-2.19 (-2.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners71.5%
Inst Owner Change1.9%
Ins Owners1.2%
Ins Owner Change0.46%
Market Cap55.22B
Analysts70.37
Price Target118.37 (12.39%)
Short Float %2.16%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)3.4%
PT rev (3m)4.4%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-14.37%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-1.24%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-4.45%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 13.36 | ||
| P/S | 1.59 | ||
| P/FCF | 19.89 | ||
| P/OCF | 12.6 | ||
| P/B | 2.96 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 8.24 |
EPS(TTM)8.95
EY8.5%
EPS(NY)7.89
Fwd EY7.49%
FCF(TTM)5.29
FCFY5.03%
OCF(TTM)8.36
OCFY7.94%
SpS66.44
BVpS35.6
TBVpS35.6
PEG (NY)N/A
PEG (5Y)1.3
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 | 3.44 |
F-Score6
WACC8.53%
ROIC/WACC1.68
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-15.59%
EPS Next 2Y-9.46%
EPS Next 3Y-0.35%
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-1.03%
Revenue Next 2Y-0.96%
Revenue Next 3Y3.26%
Revenue Next 5Y1.95%
EBIT growth 1Y11.85%
EBIT growth 3Y54.15%
EBIT growth 5Y17.51%
EBIT Next Year4.28%
EBIT Next 3Y4.89%
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%