PARKER HANNIFIN CORP (PH) Fundamental Analysis & Valuation

NYSE:PH • US7010941042

Current stock price

908.06 USD
-12.71 (-1.38%)
At close:
908.06 USD
0 (0%)
After Hours:

This PH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. PH Profitability Analysis

1.1 Basic Checks

  • In the past year PH was profitable.
  • In the past year PH had a positive cash flow from operations.
  • PH had positive earnings in each of the past 5 years.
  • PH had a positive operating cash flow in each of the past 5 years.
PH Yearly Net Income VS EBIT VS OCF VS FCFPH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • With an excellent Return On Assets value of 11.59%, PH belongs to the best of the industry, outperforming 87.79% of the companies in the same industry.
  • PH has a better Return On Equity (24.72%) than 93.13% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 14.92%, PH belongs to the top of the industry, outperforming 90.08% of the companies in the same industry.
  • PH had an Average Return On Invested Capital over the past 3 years of 12.83%. This is above the industry average of 10.17%.
  • The last Return On Invested Capital (14.92%) for PH is above the 3 year average (12.83%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.59%
ROE 24.72%
ROIC 14.92%
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
PH Yearly ROA, ROE, ROICPH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • Looking at the Profit Margin, with a value of 17.29%, PH belongs to the top of the industry, outperforming 93.13% of the companies in the same industry.
  • In the last couple of years the Profit Margin of PH has grown nicely.
  • PH has a Operating Margin of 21.56%. This is amongst the best in the industry. PH outperforms 93.89% of its industry peers.
  • In the last couple of years the Operating Margin of PH has grown nicely.
  • PH's Gross Margin of 37.43% is fine compared to the rest of the industry. PH outperforms 70.23% of its industry peers.
  • In the last couple of years the Gross Margin of PH has grown nicely.
Industry RankSector Rank
OM 21.56%
PM (TTM) 17.29%
GM 37.43%
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
PH Yearly Profit, Operating, Gross MarginsPH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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5

2. PH Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PH is creating some value.
  • PH has less shares outstanding than it did 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.
PH Yearly Shares OutstandingPH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
PH Yearly Total Debt VS Total AssetsPH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • PH has an Altman-Z score of 6.49. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
  • PH has a better Altman-Z score (6.49) than 83.97% of its industry peers.
  • The Debt to FCF ratio of PH is 2.96, which is a good value as it means it would take PH, 2.96 years of fcf income to pay off all of its debts.
  • PH's Debt to FCF ratio of 2.96 is fine compared to the rest of the industry. PH outperforms 71.76% of its industry peers.
  • A Debt/Equity ratio of 0.52 indicates that PH is somewhat dependend on debt financing.
  • PH has a Debt to Equity ratio (0.52) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 2.96
Altman-Z 6.49
ROIC/WACC1.48
WACC10.08%
PH Yearly LT Debt VS Equity VS FCFPH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • PH has a Current Ratio of 1.18. 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 1.18, PH is not doing good in the industry: 83.21% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.66 indicates that PH may have some problems paying its short term obligations.
  • PH's Quick ratio of 0.66 is on the low side compared to the rest of the industry. PH is outperformed by 83.97% of its industry peers.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 0.66
PH Yearly Current Assets VS Current LiabilitesPH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. PH Growth Analysis

3.1 Past

  • PH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.42%, which is quite good.
  • 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 2.78% in the past year.
  • The Revenue has been growing slightly by 7.70% on average over the past years.
EPS 1Y (TTM)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%9.1%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.34% 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 5.55% yearly.
EPS Next Y16.52%
EPS Next 2Y13.18%
EPS Next 3Y12%
EPS Next 5Y10.34%
Revenue Next Year7.82%
Revenue Next 2Y7.63%
Revenue Next 3Y6.93%
Revenue Next 5Y5.55%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • 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.
PH Yearly Revenue VS EstimatesPH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
PH Yearly EPS VS EstimatesPH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30 40

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2

4. PH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 30.78, 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.
  • When comparing the Price/Earnings ratio of PH to the average of the S&P500 Index (25.60), we can say PH is valued slightly more expensively.
  • PH is valuated quite expensively with a Price/Forward Earnings ratio of 25.91.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PH.
  • The average S&P500 Price/Forward Earnings ratio is at 22.84. PH is around the same levels.
Industry RankSector Rank
PE 30.78
Fwd PE 25.91
PH Price Earnings VS Forward Price EarningsPH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 67.94% 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 RankSector Rank
P/FCF 34.32
EV/EBITDA 23.28
PH Per share dataPH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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)1.86
PEG (5Y)1.5
EPS Next 2Y13.18%
EPS Next 3Y12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. PH Dividend Analysis

5.1 Amount

  • PH has a yearly dividend return of 0.80%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.20, PH has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.88, PH's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.8%

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 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
PH Yearly Dividends per sharePH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • PH pays out 25.36% 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.
DP25.36%
EPS Next 2Y13.18%
EPS Next 3Y12%
PH Yearly Income VS Free CF VS DividendPH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
PH Dividend Payout.PH Dividend Payout, showing the Payout Ratio.PH Dividend Payout.PayoutRetained Earnings

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PH Fundamentals: All Metrics, Ratios and Statistics

PARKER HANNIFIN CORP

NYSE:PH (4/2/2026, 10:47:42 PM)

After market: 908.06 0 (0%)

908.06

-12.71 (-1.38%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-29
Inst Owners90.3%
Inst Owner Change0.57%
Ins Owners0.14%
Ins Owner Change-0.23%
Market Cap114.62B
Revenue(TTM)20.46B
Net Income(TTM)3.54B
Analysts80
Price Target1044.65 (15.04%)
Short Float %1.04%
Short Ratio1.67
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP25.36%
Div Incr Years8
Div Non Decr Years34
Ex-Date02-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.68%
Min EPS beat(2)3.57%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)3.69%
Min EPS beat(4)0.28%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)2.87%
EPS beat(12)11
Avg EPS beat(12)5.66%
EPS beat(16)15
Avg EPS beat(16)5.62%
Revenue beat(2)0
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-0.86%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-1.93%
Revenue beat(12)1
Avg Revenue beat(12)-1.65%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)1.03%
PT rev (3m)10.18%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)0.15%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.9%
Valuation
Industry RankSector Rank
PE 30.78
Fwd PE 25.91
P/S 5.6
P/FCF 34.32
P/OCF 30.64
P/B 8.01
P/tB N/A
EV/EBITDA 23.28
EPS(TTM)29.5
EY3.25%
EPS(NY)35.05
Fwd EY3.86%
FCF(TTM)26.46
FCFY2.91%
OCF(TTM)29.64
OCFY3.26%
SpS162.11
BVpS113.38
TBVpS-35.24
PEG (NY)1.86
PEG (5Y)1.5
Graham Number274.33
Profitability
Industry RankSector Rank
ROA 11.59%
ROE 24.72%
ROCE 18.06%
ROIC 14.92%
ROICexc 15.18%
ROICexgc 69.54%
OM 21.56%
PM (TTM) 17.29%
GM 37.43%
FCFM 16.32%
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 Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 2.96
Debt/EBITDA 1.4
Cap/Depr 43.78%
Cap/Sales 1.96%
Interest Coverage 250
Cash Conversion 70.2%
Profit Quality 94.42%
Current Ratio 1.18
Quick Ratio 0.66
Altman-Z 6.49
F-Score7
WACC10.08%
ROIC/WACC1.48
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)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
EPS Next Y16.52%
EPS Next 2Y13.18%
EPS Next 3Y12%
EPS Next 5Y10.34%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%9.1%
Revenue Next Year7.82%
Revenue Next 2Y7.63%
Revenue Next 3Y6.93%
Revenue Next 5Y5.55%
EBIT growth 1Y9.29%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year26.92%
EBIT Next 3Y14.15%
EBIT Next 5Y9.05%
FCF growth 1Y16.91%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y14.91%
OCF growth 3Y15.64%
OCF growth 5Y12.77%

PARKER HANNIFIN CORP / PH Fundamental Analysis FAQ

What is the fundamental rating for PH stock?

ChartMill assigns a fundamental rating of 6 / 10 to PH.


What is the valuation status for PH stock?

ChartMill assigns a valuation rating of 2 / 10 to PARKER HANNIFIN CORP (PH). This can be considered as Overvalued.


Can you provide the profitability details for PARKER HANNIFIN CORP?

PARKER HANNIFIN CORP (PH) has a profitability rating of 9 / 10.


What are the PE and PB ratios of PARKER HANNIFIN CORP (PH) stock?

The Price/Earnings (PE) ratio for PARKER HANNIFIN CORP (PH) is 30.78 and the Price/Book (PB) ratio is 8.01.


Can you provide the expected EPS growth for PH stock?

The Earnings per Share (EPS) of PARKER HANNIFIN CORP (PH) is expected to grow by 16.52% in the next year.