PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PH - US7010941042 - Common Stock
886.47 USD
+11.66 (+1.33%)
886.47 USD
0 (0%)
PH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
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 84.85% of its industry peers.
The Return On Equity of PH (26.43%) is better than 93.94% of its industry peers.
PH has a Return On Invested Capital of 14.75%. This is amongst the best in the industry. PH outperforms 87.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PH is above the industry average of 10.27%.
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
With an excellent Profit Margin value of 18.18%, PH belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
PH's Profit Margin has improved in the last couple of years.
PH's Operating Margin of 21.31% is amongst the best of the industry. PH outperforms 92.42% of its industry peers.
In the last couple of years the Operating Margin of PH has grown nicely.
With a decent Gross Margin value of 37.20%, PH is doing good in the industry, outperforming 68.94% of the companies in the same industry.
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
PH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PH has been reduced compared to 5 years ago.
PH has a better debt/assets ratio than last year.
2.2 Solvency
PH has an Altman-Z score of 6.12. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.12, PH belongs to the best of the industry, outperforming 85.61% 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.
With a decent Debt to FCF ratio value of 3.05, PH is doing good in the industry, outperforming 68.94% of the companies in the same industry.
PH has a Debt/Equity ratio of 0.54. This is a neutral value indicating PH is somewhat dependend on debt financing.
PH has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: PH outperforms 44.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.12 |
ROIC/WACC1.58
WACC9.32%
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.
With a Current ratio value of 1.07, PH is not doing good in the industry: 85.61% of the companies in the same industry are doing better.
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 85.61% 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.
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%.
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.
PH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.
EPS Next Y14.02%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
EPS Next 5Y9.19%
Revenue Next Year6.86%
Revenue Next 2Y6.85%
Revenue Next 3Y6.46%
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.
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
The Price/Earnings ratio is 31.24, which means the current valuation is very expensive for PH.
PH's Price/Earnings is on the same level as the industry average.
PH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.97 indicates a quite expensive valuation of PH.
The rest of the industry has a similar Price/Forward Earnings ratio as PH.
PH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.24 | ||
| Fwd PE | 25.97 |
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 65.91% 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 | 33.04 | ||
| EV/EBITDA | 23.5 |
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)2.23
PEG (5Y)1.52
EPS Next 2Y11.7%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
PH has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 1.04, PH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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
24.15% 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.
DP24.15%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
886.47
+11.66 (+1.33%)
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 Cap111.86B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.63
Price Target944.05 (6.5%)
Short Float %1.06%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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)15.59%
PT rev (3m)17.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.69%
EPS NY rev (1m)3.7%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.64%
Revenue NY rev (1m)1.85%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.24 | ||
| Fwd PE | 25.97 | ||
| P/S | 5.58 | ||
| P/FCF | 33.04 | ||
| P/OCF | 29.33 | ||
| P/B | 8.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.5 |
EPS(TTM)28.38
EY3.2%
EPS(NY)34.14
Fwd EY3.85%
FCF(TTM)26.83
FCFY3.03%
OCF(TTM)30.22
OCFY3.41%
SpS158.73
BVpS109.18
TBVpS-40.61
PEG (NY)2.23
PEG (5Y)1.52
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 | 6.12 |
F-Score7
WACC9.32%
ROIC/WACC1.58
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 Y14.02%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year6.86%
Revenue Next 2Y6.85%
Revenue Next 3Y6.46%
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 31.24 and the Price/Book (PB) ratio is 8.12.
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%.