PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PH - US7010941042 - Common Stock
861.7 USD
+0.21 (+0.02%)
861.7 USD
0 (0%)
PH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. While PH has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, PH is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year PH was profitable.
PH had a positive operating cash flow in the past year.
PH had positive earnings in each of the past 5 years.
Each year in the past 5 years PH had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.87%, PH belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
The Return On Equity of PH (26.43%) is better than 93.08% of its industry peers.
PH has a Return On Invested Capital of 14.75%. This is amongst the best in the industry. PH outperforms 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 10.35%.
The last Return On Invested Capital (14.75%) for PH is above the 3 year average (12.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROIC | 14.75% |
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.
PH has a Operating Margin of 21.31%. This is amongst the best in the industry. PH outperforms 92.31% of its industry peers.
PH's Operating Margin has improved in the last couple of years.
PH's Gross Margin of 37.20% is fine compared to the rest of the industry. PH outperforms 68.46% of its industry peers.
In the last couple of years the Gross Margin of PH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% |
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.
PH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PH has less shares outstanding
The debt/assets ratio for PH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.01 indicates that PH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.01, PH belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
The Debt to FCF ratio of PH is 3.05, which is a good value as it means it would take PH, 3.05 years of fcf income to pay off all of its debts.
PH has a better Debt to FCF ratio (3.05) than 70.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.54, PH is in line with its industry, outperforming 44.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.01 |
ROIC/WACC1.6
WACC9.21%
2.3 Liquidity
PH has a Current Ratio of 1.07. This is a normal value and indicates that PH is financially healthy and should not expect problems in meeting its short term obligations.
PH has a Current ratio of 1.07. This is amonst the worse of the industry: PH underperforms 86.15% of its industry peers.
A Quick Ratio of 0.61 indicates that PH may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, PH is not doing good in the industry: 86.15% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing by 20.50% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 0.22% in the past year.
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
The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
Based on estimates for the next years, PH will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
EPS Next 5Y9.19%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.79%
Revenue Next 5Y5.48%
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 30.36, PH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, PH is valued a bit more expensive than 60.77% of the companies in the same industry.
PH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.24 indicates a quite expensive valuation of PH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PH indicates a slightly more expensive valuation: PH is more expensive than 61.54% of the companies listed in the same industry.
PH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 26.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than 64.62% 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 | 32.12 | ||
| EV/EBITDA | 22.9 |
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.
The excellent profitability rating of PH may justify a higher PE ratio.
PEG (NY)3.05
PEG (5Y)1.48
EPS Next 2Y9.55%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
PH has a yearly dividend return of 0.84%, which is pretty low.
PH's Dividend Yield is comparable with the industry average which is at 1.90.
With a Dividend Yield of 0.84, PH pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
On average, the dividend of PH grows each year by 13.82%, which is quite nice.
PH has paid a dividend for at least 10 years, which is 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.
The dividend of PH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.15%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
861.7
+0.21 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change5.67%
Ins Owners0.15%
Ins Owner Change-1.08%
Market Cap108.74B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target909.82 (5.58%)
Short Float %1.15%
Short Ratio2.37
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)13.13%
PT rev (3m)14.01%
EPS NQ rev (1m)4.6%
EPS NQ rev (3m)4.76%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)2.11%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 26.24 | ||
| P/S | 5.43 | ||
| P/FCF | 32.12 | ||
| P/OCF | 28.51 | ||
| P/B | 7.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.9 |
EPS(TTM)28.38
EY3.29%
EPS(NY)32.83
Fwd EY3.81%
FCF(TTM)26.83
FCFY3.11%
OCF(TTM)30.22
OCFY3.51%
SpS158.73
BVpS109.18
TBVpS-40.61
PEG (NY)3.05
PEG (5Y)1.48
Graham Number264.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROCE | 17.86% | ||
| ROIC | 14.75% | ||
| ROICexc | 15.05% | ||
| ROICexgc | 77.92% | ||
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% | ||
| 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 | 73.64% | ||
| Profit Quality | 92.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 6.01 |
F-Score7
WACC9.21%
ROIC/WACC1.6
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 3Y10.15%
EPS Next 5Y9.19%
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 3Y5.79%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y12.98%
EBIT Next 5Y8.49%
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 6 / 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 30.36 and the Price/Book (PB) ratio is 7.89.
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%.