PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PH - US7010941042 - Common Stock
869.2 USD
+10.26 (+1.19%)
869.2 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PH. PH was compared to 130 industry peers in the Machinery industry. PH scores excellent on profitability, but 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.
PH had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 11.87%, PH belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
PH has a Return On Equity of 26.43%. This is amongst the best in the industry. PH outperforms 93.08% of its industry peers.
PH has a better Return On Invested Capital (14.75%) than 86.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PH is above the industry average of 10.39%.
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
PH's Profit Margin of 18.18% is amongst the best of the industry. PH outperforms 95.38% of its industry peers.
In the last couple of years the Profit Margin of PH has grown nicely.
PH has a Operating Margin of 21.31%. This is amongst the best in the industry. PH outperforms 92.31% of its industry peers.
PH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.20%, PH is in the better half of the industry, outperforming 68.46% of the companies in the same industry.
PH's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for PH has been reduced compared to 1 year ago.
Compared to 5 years ago, PH has less shares outstanding
The debt/assets ratio for PH has been reduced compared to a year ago.
2.2 Solvency
PH has an Altman-Z score of 6.04. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.04, PH belongs to the top of the industry, outperforming 83.85% 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.
Looking at the Debt to FCF ratio, with a value of 3.05, PH is in the better half of the industry, outperforming 70.00% 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.
With a Debt to Equity ratio value of 0.54, PH perfoms like the industry average, outperforming 44.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.04 |
ROIC/WACC1.59
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.07 indicates that PH should not have too much problems paying its short term obligations.
PH has a Current ratio of 1.07. This is amonst the worse of the industry: PH underperforms 86.15% of its industry peers.
A Quick Ratio of 0.61 indicates that PH may have some problems paying its short term obligations.
The Quick ratio of PH (0.61) is worse than 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.
The Earnings Per Share has been growing by 20.50% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 0.22% in the past year.
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
Based on estimates for the next years, PH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.19% on average per year.
Based on estimates for the next years, PH will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
EPS Next 5Y9.19%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.79%
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
The Price/Earnings ratio is 30.63, which means the current valuation is very expensive for PH.
Compared to the rest of the industry, the Price/Earnings ratio of PH is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.37. PH is around the same levels.
Based on the Price/Forward Earnings ratio of 26.47, the valuation of PH can be described as expensive.
Based on the Price/Forward Earnings ratio, PH is valued a bit more expensive than the industry average as 60.77% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 36.20. PH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 26.47 |
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 63.85% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.4 | ||
| EV/EBITDA | 23.08 |
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.
PH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)1.49
EPS Next 2Y9.55%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
PH has a yearly dividend return of 0.84%, which is pretty low.
PH's Dividend Yield is comparable with the industry average which is at 1.90.
Compared to an average S&P500 Dividend Yield of 2.32, PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
On average, the dividend of PH grows each year by 13.82%, 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)13.82%
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.
The dividend of PH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.15%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
869.2
+10.26 (+1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change5.67%
Ins Owners0.15%
Ins Owner Change-1.08%
Market Cap109.68B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target909.82 (4.67%)
Short Float %1.08%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)13.13%
PT rev (3m)14.01%
EPS NQ rev (1m)4.6%
EPS NQ rev (3m)4.76%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)2.11%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 26.47 | ||
| P/S | 5.48 | ||
| P/FCF | 32.4 | ||
| P/OCF | 28.76 | ||
| P/B | 7.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.08 |
EPS(TTM)28.38
EY3.27%
EPS(NY)32.83
Fwd EY3.78%
FCF(TTM)26.83
FCFY3.09%
OCF(TTM)30.22
OCFY3.48%
SpS158.73
BVpS109.18
TBVpS-40.61
PEG (NY)3.08
PEG (5Y)1.49
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 | 6.04 |
F-Score7
WACC9.26%
ROIC/WACC1.59
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 Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.79%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y12.98%
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 30.63 and the Price/Book (PB) ratio is 7.96.
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%.