PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - NYSE:PH - US7010941042 - Common Stock
826.83 USD
-5.12 (-0.62%)
We assign a fundamental rating of 5 out of 10 to PH. PH was compared to 130 industry peers in the Machinery industry. PH scores excellent on profitability, but there are some minor concerns on its financial health. PH is valied quite expensively at the moment, while 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.
PH had positive earnings in each of the past 5 years.
PH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PH has a Return On Assets of 11.87%. This is amongst the best in the industry. PH outperforms 86.15% of its industry peers.
PH's Return On Equity of 26.43% is amongst the best of the industry. PH outperforms 93.08% of its industry peers.
PH has a better Return On Invested Capital (14.66%) 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 10.25%.
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
The Profit Margin of PH (18.18%) is better than 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.
In the last couple of years the Operating Margin of PH has grown nicely.
PH has a Gross Margin of 37.15%. This is in the better half of the industry: PH outperforms 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
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
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.
Looking at the Debt to FCF ratio, with a value of 3.05, PH is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that PH is somewhat dependend on debt financing.
The Debt to Equity ratio of PH (0.54) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | N/A |
ROIC/WACC1.55
WACC9.46%
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.
Looking at the Current ratio, with a value of 1.07, PH is doing worse than 86.15% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.61, PH is doing worse than 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.73% over the past year.
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%.
Measured over the past years, PH shows a small growth in Revenue. The Revenue has been growing by 7.70% on average per year.
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
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.
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
PH is valuated quite expensively with a Price/Earnings ratio of 29.13.
Based on the Price/Earnings ratio, PH is valued a bit more expensive than 60.00% of the companies in the same industry.
PH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 25.18, which means the current valuation is very expensive for 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 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 | 29.13 | ||
| Fwd PE | 25.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PH indicates a slightly more expensive valuation: PH is more expensive than 65.38% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.91 | ||
| EV/EBITDA | 22.35 |
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)2.93
PEG (5Y)1.42
EPS Next 2Y9.55%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, PH is not a good candidate for dividend investing.
PH's Dividend Yield is comparable with the industry average which is at 1.87.
Compared to an average S&P500 Dividend Yield of 2.44, PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 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
24.15% of the earnings are spent on dividend by PH. This is a low number and 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 3Y8.78%
NYSE:PH (11/17/2025, 2:13:08 PM)
826.83
-5.12 (-0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change5.7%
Ins Owners0.15%
Ins Owner Change-2.53%
Market Cap104.63B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target816.74 (-1.22%)
Short Float %1.07%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)2.57%
EPS NQ rev (3m)2.65%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 25.18 | ||
| P/S | 5.22 | ||
| P/FCF | 30.91 | ||
| P/OCF | 27.43 | ||
| P/B | 7.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.35 |
EPS(TTM)28.38
EY3.43%
EPS(NY)32.83
Fwd EY3.97%
FCF(TTM)26.75
FCFY3.24%
OCF(TTM)30.14
OCFY3.65%
SpS158.29
BVpS108.87
TBVpS-40.49
PEG (NY)2.93
PEG (5Y)1.42
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
WACC9.46%
ROIC/WACC1.55
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 29.13 and the Price/Book (PB) ratio is 7.59.
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%.