PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - NYSE:PH - US7010941042 - Common Stock
759.96 USD
+1.18 (+0.16%)
759.96 USD
0 (0%)
PH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 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 valued expensive and it does not seem to be growing.
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.
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 11.97%, PH belongs to the best of the industry, outperforming 88.28% of the companies in the same industry.
PH's Return On Equity of 25.81% is amongst the best of the industry. PH outperforms 92.97% of its industry peers.
The Return On Invested Capital of PH (14.37%) is better than 85.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PH is above the industry average of 10.02%.
The last Return On Invested Capital (14.37%) for PH is above the 3 year average (13.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROIC | 14.37% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)13.03%
ROIC(5y)12.34%
1.3 Margins
With an excellent Profit Margin value of 17.79%, PH belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
PH's Profit Margin has improved in the last couple of years.
PH has a better Operating Margin (20.75%) than 91.41% of its industry peers.
In the last couple of years the Operating Margin of PH has grown nicely.
PH's Gross Margin of 36.96% is fine compared to the rest of the industry. PH outperforms 67.97% of its industry peers.
PH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.75% | ||
| PM (TTM) | 17.79% | ||
| GM | 36.96% |
OM growth 3Y4.16%
OM growth 5Y9.38%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.21%
GM growth 5Y7.79%
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.
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
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's Debt to FCF ratio of 2.78 is fine compared to the rest of the industry. PH outperforms 69.53% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that PH is somewhat dependend on debt financing.
The Debt to Equity ratio of PH (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.46
WACC9.85%
2.3 Liquidity
PH has a Current Ratio of 1.19. 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 1.19 is on the low side compared to the rest of the industry. PH is outperformed by 84.38% 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.
With a Quick ratio value of 0.71, PH is not doing good in the industry: 83.59% of the companies in the same industry are doing better.
| 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.
Measured over the past years, PH shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.50% on average per year.
The Revenue has decreased by -0.40% in the past year.
PH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.70% yearly.
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
PH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.66% yearly.
The Revenue is expected to grow by 5.17% on average over the next years.
EPS Next Y9.81%
EPS Next 2Y9.5%
EPS Next 3Y8.86%
EPS Next 5Y7.66%
Revenue Next Year4.57%
Revenue Next 2Y5.04%
Revenue Next 3Y5.06%
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
Based on the Price/Earnings ratio of 27.78, the valuation of PH can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as PH.
When comparing the Price/Earnings ratio of PH to the average of the S&P500 Index (27.27), we can say PH is valued inline with the index average.
A Price/Forward Earnings ratio of 25.29 indicates a quite expensive valuation of PH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PH is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, PH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 25.29 |
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 64.84% of the companies listed 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 | 28.82 | ||
| EV/EBITDA | 20.88 |
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)2.83
PEG (5Y)1.36
EPS Next 2Y9.5%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
PH has a yearly dividend return of 0.94%, which is pretty low.
Compared to an average industry Dividend Yield of 1.74, PH pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.94, PH pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of PH grows each year by 13.72%, which is quite nice.
PH has paid a dividend for at least 10 years, which is a reliable track record.
PH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.72%
Div Incr Years8
Div Non Decr Years34
5.3 Sustainability
24.39% of the earnings are spent on dividend by PH. This is a low number and sustainable payout ratio.
PH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.39%
EPS Next 2Y9.5%
EPS Next 3Y8.86%
759.96
+1.18 (+0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.31%
Inst Owner Change-5.25%
Ins Owners0.16%
Ins Owner Change1.74%
Market Cap96.27B
Analysts80.61
Price Target801.85 (5.51%)
Short Float %1.15%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend6.72
Dividend Growth(5Y)13.72%
DP24.39%
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)5.75%
PT rev (3m)10.06%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-5.14%
EPS NY rev (1m)0.98%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 25.29 | ||
| P/S | 4.85 | ||
| P/FCF | 28.82 | ||
| P/OCF | 25.5 | ||
| P/B | 7.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.88 |
EPS(TTM)27.36
EY3.6%
EPS(NY)30.04
Fwd EY3.95%
FCF(TTM)26.37
FCFY3.47%
OCF(TTM)29.81
OCFY3.92%
SpS156.69
BVpS108
TBVpS-34.62
PEG (NY)2.83
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROCE | 17.4% | ||
| ROIC | 14.37% | ||
| ROICexc | 14.65% | ||
| ROICexgc | 66.17% | ||
| OM | 20.75% | ||
| PM (TTM) | 17.79% | ||
| GM | 36.96% | ||
| FCFM | 16.83% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)13.03%
ROIC(5y)12.34%
ROICexc(3y)13.28%
ROICexc(5y)12.66%
ROICexgc(3y)62.44%
ROICexgc(5y)50.33%
ROCE(3y)16.68%
ROCE(5y)15.67%
ROICexcg growth 3Y40.44%
ROICexcg growth 5Y12.95%
ROICexc growth 3Y8.47%
ROICexc growth 5Y9.14%
OM growth 3Y4.16%
OM growth 5Y9.38%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.21%
GM growth 5Y7.79%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.13% | ||
| Profit Quality | 94.62% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | N/A |
F-Score7
WACC9.85%
ROIC/WACC1.46
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 Y9.81%
EPS Next 2Y9.5%
EPS Next 3Y8.86%
EPS Next 5Y7.66%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
Revenue Next Year4.57%
Revenue Next 2Y5.04%
Revenue Next 3Y5.06%
Revenue Next 5Y5.17%
EBIT growth 1Y4.13%
EBIT growth 3Y12.25%
EBIT growth 5Y17.81%
EBIT Next Year18.88%
EBIT Next 3Y10.13%
EBIT Next 5Y8.67%
FCF growth 1Y11.96%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y11.57%
OCF growth 3Y15.64%
OCF growth 5Y12.77%