PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - NYSE:PH - US7010941042 - Common Stock
831.95 USD
-9.99 (-1.19%)
832.06 USD
+0.11 (+0.01%)
Taking everything into account, PH scores 5 out of 10 in our fundamental rating. PH was compared to 130 industry peers in the Machinery industry. While PH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PH had positive earnings in the past year.
PH had a positive operating cash flow in the past year.
In the past 5 years PH has always been profitable.
Each year in the past 5 years PH had a positive operating cash flow.
1.2 Ratios
PH has a better Return On Assets (11.87%) than 86.92% of its industry peers.
PH has a Return On Equity of 26.43%. This is amongst the best in the industry. PH outperforms 93.08% of its industry peers.
The Return On Invested Capital of PH (14.66%) is better than 86.15% of its industry peers.
PH had an Average Return On Invested Capital over the past 3 years of 12.83%. This is above the industry average of 10.28%.
The 3 year average ROIC (12.83%) for PH is below the current ROIC(14.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROIC | 14.66% |
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
PH has a Profit Margin of 18.18%. This is amongst the best in the industry. PH outperforms 95.38% of its industry peers.
In the last couple of years the Profit Margin of PH has grown nicely.
Looking at the Operating Margin, with a value of 21.18%, PH belongs to the top of the industry, outperforming 91.54% of the companies in the same industry.
PH's Operating Margin has improved in the last couple of years.
PH has a better Gross Margin (37.15%) than 67.69% of its industry peers.
PH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.18% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.15% |
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
PH 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 PH has been reduced compared to 1 year ago.
The number of shares outstanding for PH has been reduced compared to 5 years ago.
The debt/assets ratio for PH has been reduced compared to a year ago.
2.2 Solvency
PH has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as PH would need 3.05 years to pay back of all of its debts.
PH has a Debt to FCF ratio of 3.05. This is in the better half of the industry: PH outperforms 68.46% of its industry peers.
PH has a Debt/Equity ratio of 0.54. This is a neutral value indicating PH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, PH perfoms like the industry average, outperforming 43.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | N/A |
ROIC/WACC1.57
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.07 indicates that PH should not have too much problems paying its short term obligations.
PH's Current ratio of 1.07 is on the low side compared to the rest of the industry. PH is outperformed by 86.15% of its industry peers.
PH has a Quick Ratio of 1.07. This is a bad value and indicates that PH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PH (0.61) is worse than 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
PH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.73%, which is quite good.
PH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.50% yearly.
PH 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
PH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.54% yearly.
The Revenue is expected to grow by 5.17% on average over the next years.
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
Based on the Price/Earnings ratio of 29.31, the valuation of PH can be described as expensive.
Based on the Price/Earnings ratio, PH is valued a bit more expensive than 60.77% of the companies in the same industry.
When comparing the Price/Earnings ratio of PH to the average of the S&P500 Index (25.89), we can say PH is valued inline with the index average.
PH is valuated quite expensively with a Price/Forward Earnings ratio of 25.34.
Based on the Price/Forward Earnings ratio, PH is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
PH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 25.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than the industry average as 66.92% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as PH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.1 | ||
| EV/EBITDA | 22.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)1.43
EPS Next 2Y9.55%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, PH is not a good candidate for dividend investing.
PH's Dividend Yield is comparable with the industry average which is at 1.86.
With a Dividend Yield of 0.84, PH pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of PH is nicely growing with an annual growth rate of 13.82%!
PH has been paying a dividend for at least 10 years, so it has a reliable track record.
PH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.82%
Div Incr Years8
Div Non Decr Years34
5.3 Sustainability
PH pays out 24.15% of its income as dividend. This is a sustainable payout ratio.
PH'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%
831.95
-9.99 (-1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change3.19%
Ins Owners0.15%
Ins Owner Change-0.83%
Market Cap105.27B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target816.74 (-1.83%)
Short Float %1.07%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP24.15%
Div Incr Years8
Div Non Decr Years34
Ex-Date
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)1.56%
PT rev (3m)7.71%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 25.34 | ||
| P/S | 5.26 | ||
| P/FCF | 31.1 | ||
| P/OCF | 27.6 | ||
| P/B | 7.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.59 |
EPS(TTM)28.38
EY3.41%
EPS(NY)32.83
Fwd EY3.95%
FCF(TTM)26.75
FCFY3.22%
OCF(TTM)30.14
OCFY3.62%
SpS158.29
BVpS108.87
TBVpS-40.49
PEG (NY)2.95
PEG (5Y)1.43
Graham Number263.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROCE | 17.75% | ||
| ROIC | 14.66% | ||
| ROICexc | 14.95% | ||
| ROICexgc | 77.43% | ||
| OM | 21.18% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.15% | ||
| 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 | 74.03% | ||
| Profit Quality | 92.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | N/A |
F-Score7
WACC9.36%
ROIC/WACC1.57
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 1Y5.5%
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 / PH FAQ
What is the fundamental rating for PH stock?
ChartMill assigns a fundamental rating of 5 / 10 to PH.
What is the valuation status of PARKER HANNIFIN CORP (PH) stock?
ChartMill assigns a valuation rating of 2 / 10 to PARKER HANNIFIN CORP (PH). This can be considered as Overvalued.
How profitable is PARKER HANNIFIN CORP (PH) stock?
PARKER HANNIFIN CORP (PH) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for PH stock?
The Price/Earnings (PE) ratio for PARKER HANNIFIN CORP (PH) is 29.31 and the Price/Book (PB) ratio is 7.64.
How sustainable is the dividend of PARKER HANNIFIN CORP (PH) stock?
The dividend rating of PARKER HANNIFIN CORP (PH) is 5 / 10 and the dividend payout ratio is 24.15%.