PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
NYSE:PH - New York Stock Exchange, Inc. - US7010941042 - Common Stock - Currency: USD
Taking everything into account, PH scores 5 out of 10 in our fundamental rating. PH was compared to 131 industry peers in the Machinery industry. PH scores excellent on profitability, but 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.
PH had a positive operating cash flow in the past year.
PH had positive earnings in each of the past 5 years.
In the past 5 years PH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.77%, PH is in the better half of the industry, outperforming 78.74% of the companies in the same industry.
PH has a Return On Equity of 22.43%. This is amongst the best in the industry. PH outperforms 86.61% of its industry peers.
PH has a Return On Invested Capital of 14.17%. This is amongst the best in the industry. PH outperforms 81.89% of its industry peers.
PH had an Average Return On Invested Capital over the past 3 years of 11.38%. This is in line with the industry average of 11.19%.
The 3 year average ROIC (11.38%) for PH is below the current ROIC(14.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 22.43% | ||
| ROIC | 14.17% |
ROA(3y)7.24%
ROA(5y)7.28%
ROE(3y)19.53%
ROE(5y)19.82%
ROIC(3y)11.38%
ROIC(5y)10.72%
1.3 Margins
PH has a Profit Margin of 14.47%. This is amongst the best in the industry. PH outperforms 88.98% of its industry peers.
In the last couple of years the Profit Margin of PH has grown nicely.
The Operating Margin of PH (20.12%) is better than 88.19% of its industry peers.
In the last couple of years the Operating Margin of PH has grown nicely.
PH has a Gross Margin of 36.08%. This is in the better half of the industry: PH outperforms 64.57% of its industry peers.
PH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.12% | ||
| PM (TTM) | 14.47% | ||
| GM | 36.08% |
OM growth 3Y5.61%
OM growth 5Y6.57%
PM growth 3Y5.45%
PM growth 5Y6.21%
GM growth 3Y2.6%
GM growth 5Y7.21%
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.
PH has about the same amout of shares outstanding than it did 1 year ago.
PH has more shares outstanding than it did 5 years ago.
PH has a better debt/assets ratio than last year.
2.2 Solvency
PH has an Altman-Z score of 5.16. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
PH has a Altman-Z score of 5.16. This is in the better half of the industry: PH outperforms 74.02% of its industry peers.
The Debt to FCF ratio of PH is 3.31, which is a good value as it means it would take PH, 3.31 years of fcf income to pay off all of its debts.
PH has a better Debt to FCF ratio (3.31) than 64.57% of its industry peers.
PH has a Debt/Equity ratio of 0.52. This is a neutral value indicating PH is somewhat dependend on debt financing.
The Debt to Equity ratio of PH (0.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 5.16 |
ROIC/WACC1.51
WACC9.4%
2.3 Liquidity
PH has a Current Ratio of 0.96. 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 Current ratio, with a value of 0.96, PH is doing worse than 91.34% of the companies in the same industry.
PH has a Quick Ratio of 0.96. 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 0.57, PH is doing worse than 92.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.76% over the past year.
Measured over the past years, PH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.50% on average per year.
Looking at the last year, PH shows a small growth in Revenue. The Revenue has grown by 1.56% in the last year.
Measured over the past years, PH shows a small growth in Revenue. The Revenue has been growing by 6.83% on average per year.
EPS 1Y (TTM)12.76%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%4.03%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%1.17%
3.2 Future
PH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.87% yearly.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y8.8%
EPS Next 2Y9.4%
EPS Next 3Y9.36%
EPS Next 5Y7.87%
Revenue Next Year2.21%
Revenue Next 2Y3.67%
Revenue Next 3Y4.33%
Revenue Next 5Y4.2%
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 26.53, the valuation of PH can be described as expensive.
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 28.64, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.38, PH is valued on the expensive side.
PH's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PH to the average of the S&P500 Index (24.51), we can say PH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 22.38 |
4.2 Price Multiples
PH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PH is more expensive than 60.63% of the companies 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 | 28.42 | ||
| EV/EBITDA | 19.57 |
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)3.02
PEG (5Y)1.61
EPS Next 2Y9.4%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, PH is not a good candidate for dividend investing.
PH's Dividend Yield is a higher than the industry average which is at 1.65.
With a Dividend Yield of 0.99, PH pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of PH is nicely growing with an annual growth rate of 13.91%!
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)13.91%
Div Incr Years8
Div Non Decr Years34
5.3 Sustainability
PH pays out 27.72% of its income as dividend. This is a sustainable payout ratio.
The dividend of PH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.72%
EPS Next 2Y9.4%
EPS Next 3Y9.36%
PARKER HANNIFIN CORP
NYSE:PH (1/23/2025, 9:24:36 PM)
After market: 680.09 0 (0%)680.09
+5.6 (+0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners83.49%
Inst Owner Change0.01%
Ins Owners0.15%
Ins Owner Change-1.08%
Market Cap87.54B
Analysts80.65
Price Target752.87 (10.7%)
Short Float %1.08%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend6.09
Dividend Growth(5Y)13.91%
DP27.72%
Div Incr Years8
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.85%
Min EPS beat(2)-1.98%
Max EPS beat(2)5.69%
EPS beat(4)3
Avg EPS beat(4)4.97%
Min EPS beat(4)-1.98%
Max EPS beat(4)13.43%
EPS beat(8)7
Avg EPS beat(8)6.87%
EPS beat(12)11
Avg EPS beat(12)7.02%
EPS beat(16)14
Avg EPS beat(16)8.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)-0.9%
Revenue beat(4)0
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)-0.9%
Revenue beat(8)2
Avg Revenue beat(8)-1.08%
Revenue beat(12)4
Avg Revenue beat(12)-0.59%
Revenue beat(16)6
Avg Revenue beat(16)-0.54%
PT rev (1m)1.94%
PT rev (3m)16.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 22.38 | ||
| P/S | 4.38 | ||
| P/FCF | 28.42 | ||
| P/OCF | 25.17 | ||
| P/B | 6.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.57 |
EPS(TTM)25.63
EY3.77%
EPS(NY)30.39
Fwd EY4.47%
FCF(TTM)23.93
FCFY3.52%
OCF(TTM)27.02
OCFY3.97%
SpS155.27
BVpS100.15
TBVpS-42.58
PEG (NY)3.02
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 22.43% | ||
| ROCE | 18.06% | ||
| ROIC | 14.17% | ||
| ROICexc | 14.41% | ||
| ROICexgc | 89.64% | ||
| OM | 20.12% | ||
| PM (TTM) | 14.47% | ||
| GM | 36.08% | ||
| FCFM | 15.41% |
ROA(3y)7.24%
ROA(5y)7.28%
ROE(3y)19.53%
ROE(5y)19.82%
ROIC(3y)11.38%
ROIC(5y)10.72%
ROICexc(3y)11.63%
ROICexc(5y)11.05%
ROICexgc(3y)46.12%
ROICexgc(5y)42.17%
ROCE(3y)15.73%
ROCE(5y)14.4%
ROICexcg growth 3Y14.15%
ROICexcg growth 5Y6.29%
ROICexc growth 3Y4.37%
ROICexc growth 5Y-2.26%
OM growth 3Y5.61%
OM growth 5Y6.57%
PM growth 3Y5.45%
PM growth 5Y6.21%
GM growth 3Y2.6%
GM growth 5Y7.21%
F-Score9
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 43.42% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.46% | ||
| Profit Quality | 106.53% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 5.16 |
F-Score9
WACC9.4%
ROIC/WACC1.51
Cap/Depr(3y)43.31%
Cap/Depr(5y)41.69%
Cap/Sales(3y)1.82%
Cap/Sales(5y)1.72%
Profit Quality(3y)132.61%
Profit Quality(5y)137.14%
High Growth Momentum
Growth
EPS 1Y (TTM)12.76%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%4.03%
EPS Next Y8.8%
EPS Next 2Y9.4%
EPS Next 3Y9.36%
EPS Next 5Y7.87%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%1.17%
Revenue Next Year2.21%
Revenue Next 2Y3.67%
Revenue Next 3Y4.33%
Revenue Next 5Y4.2%
EBIT growth 1Y15.12%
EBIT growth 3Y17.83%
EBIT growth 5Y13.85%
EBIT Next Year25.79%
EBIT Next 3Y13.07%
EBIT Next 5Y8.97%
FCF growth 1Y39.44%
FCF growth 3Y8.06%
FCF growth 5Y14.22%
OCF growth 1Y40.55%
OCF growth 3Y9.54%
OCF growth 5Y14.36%