PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:PH • US7010941042
952 USD
+16.16 (+1.73%)
At close: Feb 2, 2026
955 USD
+3 (+0.32%)
Pre-Market: 2/3/2026, 8:00:01 AM
Overall PH gets a fundamental rating of 5 out of 10. We evaluated PH against 132 industry peers in the Machinery industry. PH has an excellent profitability rating, 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
- PH had positive earnings in the past year.
- 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
- With an excellent Return On Assets value of 11.59%, PH belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 24.72%, PH belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 14.87%, PH belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for PH is above the industry average of 10.37%.
- The last Return On Invested Capital (14.87%) for PH is above the 3 year average (12.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.59% | ||
| ROE | 24.72% | ||
| ROIC | 14.87% |
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 17.29%. This is amongst the best in the industry. PH outperforms 93.94% of its industry peers.
- In the last couple of years the Profit Margin of PH has grown nicely.
- PH has a Operating Margin of 21.49%. This is amongst the best in the industry. PH outperforms 92.42% of its industry peers.
- In the last couple of years the Operating Margin of PH has grown nicely.
- PH's Gross Margin of 37.39% is fine compared to the rest of the industry. PH outperforms 70.45% of its industry peers.
- PH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.49% | ||
| PM (TTM) | 17.29% | ||
| GM | 37.39% |
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.
- Compared to 5 years ago, PH has less shares outstanding
- PH has a better debt/assets ratio than last year.
2.2 Solvency
- PH has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as PH would need 2.96 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.96, PH is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
- A Debt/Equity ratio of 0.52 indicates that PH is somewhat dependend on debt financing.
- PH's Debt to Equity ratio of 0.52 is in line compared to the rest of the industry. PH outperforms 46.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | N/A |
ROIC/WACC1.56
WACC9.54%
2.3 Liquidity
- PH has a Current Ratio of 1.18. This is a normal value and indicates that PH is financially healthy and should not expect problems in meeting its short term obligations.
- PH's Current ratio of 1.18 is on the low side compared to the rest of the industry. PH is outperformed by 84.09% of its industry peers.
- A Quick Ratio of 0.66 indicates that PH may have some problems paying its short term obligations.
- PH has a worse Quick ratio (0.66) than 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- PH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.42%, 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 2.78%.
- The Revenue has been growing slightly by 7.70% on average over the past years.
EPS 1Y (TTM)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%9.1%
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 9.19% yearly.
- 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 Y14.16%
EPS Next 2Y11.9%
EPS Next 3Y11.1%
EPS Next 5Y9.19%
Revenue Next Year6.92%
Revenue Next 2Y7.09%
Revenue Next 3Y6.64%
Revenue Next 5Y5.48%
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
- The Price/Earnings ratio is 32.27, which means the current valuation is very expensive for PH.
- PH's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of PH to the average of the S&P500 Index (28.41), we can say PH is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 27.79, the valuation of PH can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as PH.
- When comparing the Price/Forward Earnings ratio of PH to the average of the S&P500 Index (25.64), we can say PH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.27 | ||
| Fwd PE | 27.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than the industry average as 68.18% 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 | 35.97 | ||
| EV/EBITDA | 24.38 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of PH may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)1.57
EPS Next 2Y11.9%
EPS Next 3Y11.1%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.77%, PH is not a good candidate for dividend investing.
- PH's Dividend Yield is a higher than the industry average which is at 1.01.
- With a Dividend Yield of 0.77, PH pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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 25.36% 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.
DP25.36%
EPS Next 2Y11.9%
EPS Next 3Y11.1%
952
+16.16 (+1.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-29 2026-04-29/bmo
Inst Owners89.97%
Inst Owner Change-2.62%
Ins Owners0.14%
Ins Owner Change-1.22%
Market Cap120.13B
Revenue(TTM)20.46B
Net Income(TTM)3.54B
Analysts80.61
Price Target959.25 (0.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP25.36%
Div Incr Years8
Div Non Decr Years34
Ex-Date02-06 2026-02-06 (1.8)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.68%
Min EPS beat(2)3.57%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)3.69%
Min EPS beat(4)0.28%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)2.87%
EPS beat(12)11
Avg EPS beat(12)5.66%
EPS beat(16)15
Avg EPS beat(16)5.62%
Revenue beat(2)0
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-0.86%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-1.93%
Revenue beat(12)1
Avg Revenue beat(12)-1.65%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)1.61%
PT rev (3m)19.28%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)4.76%
EPS NY rev (1m)0.12%
EPS NY rev (3m)3.83%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.27 | ||
| Fwd PE | 27.79 | ||
| P/S | 5.87 | ||
| P/FCF | 35.97 | ||
| P/OCF | 32.11 | ||
| P/B | 8.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.38 |
EPS(TTM)29.5
EY3.1%
EPS(NY)34.26
Fwd EY3.6%
FCF(TTM)26.47
FCFY2.78%
OCF(TTM)29.65
OCFY3.11%
SpS162.15
BVpS113.41
TBVpS-35.25
PEG (NY)2.28
PEG (5Y)1.57
Graham Number274.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.59% | ||
| ROE | 24.72% | ||
| ROCE | 18.01% | ||
| ROIC | 14.87% | ||
| ROICexc | 15.13% | ||
| ROICexgc | 69.32% | ||
| OM | 21.49% | ||
| PM (TTM) | 17.29% | ||
| GM | 37.39% | ||
| FCFM | 16.32% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.96 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 43.78% | ||
| Cap/Sales | 1.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.39% | ||
| Profit Quality | 94.42% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | N/A |
F-Score7
WACC9.54%
ROIC/WACC1.56
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)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
EPS Next Y14.16%
EPS Next 2Y11.9%
EPS Next 3Y11.1%
EPS Next 5Y9.19%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%9.1%
Revenue Next Year6.92%
Revenue Next 2Y7.09%
Revenue Next 3Y6.64%
Revenue Next 5Y5.48%
EBIT growth 1Y8.94%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year24.93%
EBIT Next 3Y13.76%
EBIT Next 5Y8.49%
FCF growth 1Y16.91%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y14.91%
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 for 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.
How financially healthy is PARKER HANNIFIN CORP?
The financial health rating of PARKER HANNIFIN CORP (PH) is 4 / 10.
Can you provide the expected EPS growth for PH stock?
The Earnings per Share (EPS) of PARKER HANNIFIN CORP (PH) is expected to grow by 14.16% in the next year.