PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - NYSE:PH - US7010941042 - Common Stock
733.59 USD
+7.43 (+1.02%)
733.59 USD
0 (0%)
Taking everything into account, PH scores 6 out of 10 in our fundamental rating. PH was compared to 129 industry peers in the Machinery industry. PH scores excellent on profitability, but 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
In the past year PH was profitable.
In the past year PH had a positive cash flow from operations.
Each year in the past 5 years PH has been profitable.
In the past 5 years PH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.97%, PH belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.81%, PH belongs to the top of the industry, outperforming 93.80% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.58%, PH belongs to the best of the industry, outperforming 86.82% of the companies in the same industry.
PH had an Average Return On Invested Capital over the past 3 years of 12.83%. This is above the industry average of 10.01%.
The 3 year average ROIC (12.83%) for PH is below the current ROIC(14.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROIC | 14.58% |
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
Looking at the Profit Margin, with a value of 17.79%, PH belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
In the last couple of years the Profit Margin of PH has grown nicely.
PH has a better Operating Margin (21.06%) than 93.02% of its industry peers.
In the last couple of years the Operating Margin of PH has grown nicely.
PH's Gross Margin of 37.01% is fine compared to the rest of the industry. PH outperforms 67.44% of its industry peers.
In the last couple of years the Gross Margin of PH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PH is creating some value.
The number of shares outstanding for PH has been reduced compared to 1 year ago.
PH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.71 indicates that PH is not in any danger for bankruptcy at the moment.
PH has a Altman-Z score of 5.71. This is amongst the best in the industry. PH outperforms 82.95% of its industry peers.
The Debt to FCF ratio of PH is 2.78, which is a good value as it means it would take PH, 2.78 years of fcf income to pay off all of its debts.
PH has a better Debt to FCF ratio (2.78) than 72.09% of its industry peers.
PH has a Debt/Equity ratio of 0.55. This is a neutral value indicating PH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, PH is in line with its industry, outperforming 42.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 5.71 |
ROIC/WACC1.57
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.19 indicates that PH should not have too much problems paying its short term obligations.
PH's Current ratio of 1.19 is on the low side compared to the rest of the industry. PH is outperformed by 85.27% of its industry peers.
PH has a Quick Ratio of 1.19. This is a bad value and indicates that PH is not financially healthy enough and could expect problems in meeting its short term obligations.
PH's Quick ratio of 0.71 is on the low side compared to the rest of the industry. PH is outperformed by 85.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.76% over the past year.
The Earnings Per Share has been growing by 20.50% on average over the past years. This is a very strong growth
PH shows a decrease in Revenue. In the last year, the revenue decreased by -0.40%.
The Revenue has been growing slightly by 7.70% on average over the past years.
EPS 1Y (TTM)7.76%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%13.59%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
3.2 Future
Based on estimates for the next years, PH will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.57% on average per year.
The Revenue is expected to grow by 5.19% on average over the next years.
EPS Next Y9.88%
EPS Next 2Y9.56%
EPS Next 3Y8.95%
EPS Next 5Y8.57%
Revenue Next Year4.63%
Revenue Next 2Y5.03%
Revenue Next 3Y5.17%
Revenue Next 5Y5.19%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 26.81, the valuation of PH can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PH is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PH to the average of the S&P500 Index (27.40), we can say PH is valued inline with the index average.
PH is valuated rather expensively with a Price/Forward Earnings ratio of 24.40.
The rest of the industry has a similar Price/Forward Earnings ratio as PH.
The average S&P500 Price/Forward Earnings ratio is at 22.94. PH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.81 | ||
| Fwd PE | 24.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than 61.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.78 | ||
| EV/EBITDA | 19.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PH does not grow enough to justify the current Price/Earnings ratio.
PH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)1.31
EPS Next 2Y9.56%
EPS Next 3Y8.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, PH is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.82, PH pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.97, PH pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
On average, the dividend of PH grows each year by 13.82%, which is quite nice.
PH has been paying a dividend for at least 10 years, so it has a reliable track record.
PH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.82%
Div Incr Years8
Div Non Decr Years34
5.3 Sustainability
PH pays out 24.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of PH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.38%
EPS Next 2Y9.56%
EPS Next 3Y8.95%
733.59
+7.43 (+1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change-0.23%
Ins Owners0.15%
Ins Owner Change1.74%
Market Cap92.83B
Analysts80
Price Target804.19 (9.62%)
Short Float %1.23%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP24.38%
Div Incr Years8
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.69%
Min EPS beat(2)0.28%
Max EPS beat(2)5.1%
EPS beat(4)3
Avg EPS beat(4)1.29%
Min EPS beat(4)-1.98%
Max EPS beat(4)5.1%
EPS beat(8)7
Avg EPS beat(8)4.49%
EPS beat(12)11
Avg EPS beat(12)6.05%
EPS beat(16)15
Avg EPS beat(16)6.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)-0.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.44%
Revenue beat(8)0
Avg Revenue beat(8)-2.59%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)0.29%
PT rev (3m)10.49%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-3.6%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.81 | ||
| Fwd PE | 24.4 | ||
| P/S | 4.68 | ||
| P/FCF | 27.78 | ||
| P/OCF | 24.58 | ||
| P/B | 6.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.79 |
EPS(TTM)27.36
EY3.73%
EPS(NY)30.06
Fwd EY4.1%
FCF(TTM)26.4
FCFY3.6%
OCF(TTM)29.84
OCFY4.07%
SpS156.87
BVpS108.12
TBVpS-34.66
PEG (NY)2.72
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROCE | 17.66% | ||
| ROIC | 14.58% | ||
| ROICexc | 14.88% | ||
| ROICexgc | 67.17% | ||
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% | ||
| FCFM | 16.83% |
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%
ROICexcg growth 3Y28.45%
ROICexcg 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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 10.89 | ||
| Cash Conversion | 74.21% | ||
| Profit Quality | 94.62% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 5.71 |
F-Score7
WACC9.28%
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)7.76%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%13.59%
EPS Next Y9.88%
EPS Next 2Y9.56%
EPS Next 3Y8.95%
EPS Next 5Y8.57%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
Revenue Next Year4.63%
Revenue Next 2Y5.03%
Revenue Next 3Y5.17%
Revenue Next 5Y5.19%
EBIT growth 1Y5.71%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y10.52%
EBIT Next 5Y9.14%
FCF growth 1Y11.96%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y11.57%
OCF growth 3Y15.64%
OCF growth 5Y12.77%