PARKER HANNIFIN CORP (PH)
US7010941042 - Common Stock
Overall PH gets a fundamental rating of 5 out of 10. We evaluated PH against 132 industry peers in the Machinery industry. While PH has a great profitability rating, there are some minor concerns on its financial health. PH is quite expensive at the moment. 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.
In the past 5 years PH has always been profitable.
Each year in the past 5 years PH had a positive operating cash flow.
1.2 Ratios
PH has a better Return On Assets (9.77%) than 80.00% of its industry peers.
With an excellent Return On Equity value of 22.43%, PH belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.17%, PH belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PH is in line with the industry average of 11.13%.
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
With an excellent Profit Margin value of 14.47%, PH belongs to the best of the industry, outperforming 89.23% 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 (20.12%) than 88.46% 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 36.08%, PH is doing good in the industry, outperforming 65.38% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PH is creating some value.
Compared to 1 year ago, PH has about the same amount of shares outstanding.
The number of shares outstanding for PH has been increased compared to 5 years ago.
The debt/assets ratio for PH has been reduced compared to a year ago.
2.2 Solvency
PH has an Altman-Z score of 5.03. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
PH has a Altman-Z score of 5.03. This is in the better half of the industry: PH outperforms 74.62% of its industry peers.
PH has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as PH would need 3.31 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.31, PH is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
PH has a Debt/Equity ratio of 0.52. This is a neutral value indicating PH is somewhat dependend on debt financing.
PH has a Debt to Equity ratio of 0.52. This is comparable to the rest of the industry: PH outperforms 43.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.62
WACC8.74%
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.
PH has a Current ratio of 0.96. This is amonst the worse of the industry: PH underperforms 91.54% of its industry peers.
A Quick Ratio of 0.57 indicates that PH may have some problems paying its short term obligations.
PH's Quick ratio of 0.57 is on the low side compared to the rest of the industry. PH is outperformed by 91.54% of its industry peers.
| 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.
The Earnings Per Share has been growing by 16.50% on average over the past years. This is quite good.
PH shows a small growth in Revenue. In the last year, the Revenue has grown by 1.56%.
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
The Earnings Per Share is expected to grow by 8.83% on average over the next years. This is quite good.
Based on estimates for the next years, PH will show a small growth in Revenue. The Revenue will grow by 5.36% on average per year.
EPS Next Y8.8%
EPS Next 2Y9.4%
EPS Next 3Y9.36%
EPS Next 5Y8.83%
Revenue Next Year2.25%
Revenue Next 2Y3.7%
Revenue Next 3Y4.36%
Revenue Next 5Y5.36%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 25.25.
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 27.20.
PH is valuated rather expensively with a Price/Forward Earnings ratio of 21.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PH is on the same level as its industry peers.
PH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than 60.00% of the companies in the same industry.
PH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.04 | ||
| EV/EBITDA | 18.86 |
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)2.87
PEG (5Y)1.53
EPS Next 2Y9.4%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
PH has a Yearly Dividend Yield of 1.02%.
Compared to an average industry Dividend Yield of 1.71, PH pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.02, PH pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
27.72% 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.
DP27.72%
EPS Next 2Y9.4%
EPS Next 3Y9.36%
PARKER HANNIFIN CORP
NYSE:PH (12/20/2024, 8:04:00 PM)
After market: 647.2 0 (0%)647.2
+7.93 (+1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners83.49%
Inst Owner Change2.82%
Ins Owners0.15%
Ins Owner Change-1.07%
Market Cap83.31B
Analysts81.29
Price Target738.54 (14.11%)
Short Float %1.01%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Dividend Growth(5Y)13.91%
DP27.72%
Div Incr Years8
Div Non Decr Years34
Ex-Date
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)6.4%
PT rev (3m)15.32%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 21.3 | ||
| P/S | 4.17 | ||
| P/FCF | 27.04 | ||
| P/OCF | 23.95 | ||
| P/B | 6.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.86 |
EPS(TTM)25.63
EY3.96%
EPS(NY)30.39
Fwd EY4.7%
FCF(TTM)23.93
FCFY3.7%
OCF(TTM)27.02
OCFY4.18%
SpS155.27
BVpS100.15
TBVpS-42.58
PEG (NY)2.87
PEG (5Y)1.53
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 | 5.03 |
F-Score9
WACC8.74%
ROIC/WACC1.62
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 5Y8.83%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%1.17%
Revenue Next Year2.25%
Revenue Next 2Y3.7%
Revenue Next 3Y4.36%
Revenue Next 5Y5.36%
EBIT growth 1Y15.12%
EBIT growth 3Y17.83%
EBIT growth 5Y13.85%
EBIT Next Year25.28%
EBIT Next 3Y12.97%
EBIT Next 5Y9.73%
FCF growth 1Y39.44%
FCF growth 3Y8.06%
FCF growth 5Y14.22%
OCF growth 1Y40.55%
OCF growth 3Y9.54%
OCF growth 5Y14.36%