PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PH - US7010941042 - Common Stock
863.19 USD
-11.3 (-1.29%)
863.19 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 belongs to the best of the industry regarding profitability, 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.
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
PH has a Return On Assets of 11.87%. This is amongst the best in the industry. PH outperforms 84.62% of its industry peers.
With an excellent Return On Equity value of 26.43%, PH belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.75%, PH belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PH is above the industry average of 10.32%.
The 3 year average ROIC (12.83%) for PH is below the current ROIC(14.75%), indicating increased profibility in the last year.
| 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 better Profit Margin (18.18%) than 94.62% 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 21.31%, PH belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
PH's Operating Margin has improved in the last couple of years.
PH has a better Gross Margin (37.20%) than 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PH is still 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 6.02 indicates that PH is not in any danger for bankruptcy at the moment.
PH has a better Altman-Z score (6.02) than 84.62% of its industry peers.
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.
PH has a Debt to FCF ratio of 3.05. This is in the better half of the industry: PH outperforms 68.46% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that 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 43.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.02 |
ROIC/WACC1.56
WACC9.47%
2.3 Liquidity
A Current Ratio of 1.07 indicates that PH should not have too much problems paying its short term obligations.
PH's Current ratio of 1.07 is on the low side compared to the rest of the industry. PH is outperformed by 86.15% of its industry peers.
A Quick Ratio of 0.61 indicates that PH may have some problems paying its short term obligations.
PH's Quick ratio of 0.61 is on the low side compared to the rest of the industry. PH is outperformed by 86.15% of its industry peers.
| 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.
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 been growing slightly by 0.22% in the past year.
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
The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
PH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.
EPS Next Y14%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
EPS Next 5Y9.19%
Revenue Next Year6.84%
Revenue Next 2Y6.84%
Revenue Next 3Y6.43%
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
PH is valuated quite expensively with a Price/Earnings ratio of 30.42.
The rest of the industry has a similar Price/Earnings ratio as PH.
PH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.22.
With a Price/Forward Earnings ratio of 25.32, PH can be considered very expensive at the moment.
PH's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.58. PH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 25.32 |
4.2 Price Multiples
66.15% of the companies in the same industry are cheaper than PH, based on the Enterprise Value to EBITDA ratio.
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 | 32.18 | ||
| EV/EBITDA | 22.94 |
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)2.17
PEG (5Y)1.48
EPS Next 2Y11.64%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
PH has a yearly dividend return of 0.80%, which is pretty low.
PH's Dividend Yield is comparable with the industry average which is at 1.00.
With a Dividend Yield of 0.80, PH pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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 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.
PH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.15%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
863.19
-11.3 (-1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.92%
Inst Owner Change5.71%
Ins Owners0.14%
Ins Owner Change-1.22%
Market Cap108.93B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.63
Price Target925.84 (7.26%)
Short Float %1.06%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)13.36%
PT rev (3m)15.46%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)4.68%
EPS NY rev (1m)3.68%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)1.83%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 25.32 | ||
| P/S | 5.44 | ||
| P/FCF | 32.18 | ||
| P/OCF | 28.56 | ||
| P/B | 7.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.94 |
EPS(TTM)28.38
EY3.29%
EPS(NY)34.1
Fwd EY3.95%
FCF(TTM)26.83
FCFY3.11%
OCF(TTM)30.22
OCFY3.5%
SpS158.73
BVpS109.18
TBVpS-40.61
PEG (NY)2.17
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 | 6.02 |
F-Score7
WACC9.47%
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)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
EPS Next Y14%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year6.84%
Revenue Next 2Y6.84%
Revenue Next 3Y6.43%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year24.47%
EBIT Next 3Y13.18%
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 30.42 and the Price/Book (PB) ratio is 7.91.
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%.