PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - NYSE:PH - US7010941042 - Common Stock
840.63 USD
-3.38 (-0.4%)
840.63 USD
0 (0%)
Overall PH gets a fundamental rating of 6 out of 10. We evaluated PH against 130 industry peers in the Machinery industry. PH has an excellent profitability rating, but 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.
PH had positive earnings in each of the past 5 years.
Each year in the past 5 years PH had a positive operating cash flow.
1.2 Ratios
PH has a Return On Assets of 11.97%. This is amongst the best in the industry. PH outperforms 87.69% of its industry peers.
The Return On Equity of PH (25.81%) is better than 93.08% of its industry peers.
PH's Return On Invested Capital of 14.58% is amongst the best of the industry. PH outperforms 86.15% of its industry peers.
PH had an Average Return On Invested Capital over the past 3 years of 12.83%. This is above the industry average of 10.24%.
The 3 year average ROIC (12.83%) for PH is below the current ROIC(14.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROIC | 14.58% |
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 17.79% is amongst the best of the industry. PH outperforms 94.62% of its industry peers.
PH's Profit Margin has improved in the last couple of years.
PH has a better Operating Margin (21.06%) than 91.54% of its industry peers.
PH's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 37.01%, PH is doing good in the industry, outperforming 67.69% 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 | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PH is still 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
Compared to 1 year ago, PH has an improved debt to assets ratio.
2.2 Solvency
PH has an Altman-Z score of 6.27. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
PH has a Altman-Z score of 6.27. This is amongst the best in the industry. PH outperforms 85.38% of its industry peers.
PH has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as PH would need 2.78 years to pay back of all of its debts.
The Debt to FCF ratio of PH (2.78) is better than 71.54% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that PH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, PH perfoms like the industry average, outperforming 43.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 6.27 |
ROIC/WACC1.55
WACC9.38%
2.3 Liquidity
A Current Ratio of 1.19 indicates that PH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, PH is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
A Quick Ratio of 0.71 indicates that PH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, PH is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 |
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
PH shows a decrease in Revenue. In the last year, the revenue decreased by -0.40%.
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)-0.4%
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 8.54% on average per year.
Based on estimates for the next years, PH will show a small growth in Revenue. The Revenue will grow by 5.17% on average per year.
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.78%
EPS Next 5Y8.54%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.2%
Revenue Next 5Y5.17%
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
Based on the Price/Earnings ratio of 29.62, the valuation of PH can be described as expensive.
Based on the Price/Earnings ratio, PH is valued a bit more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of PH to the average of the S&P500 Index (26.28), we can say PH is valued inline with the index average.
A Price/Forward Earnings ratio of 25.60 indicates a quite expensive valuation of PH.
PH's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PH is more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, PH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.62 | ||
| Fwd PE | 25.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than 66.15% 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 | 31.84 | ||
| EV/EBITDA | 22.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)1.45
EPS Next 2Y9.55%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
PH has a yearly dividend return of 0.85%, which is pretty low.
PH's Dividend Yield is comparable with the industry average which is at 1.85.
Compared to an average S&P500 Dividend Yield of 2.36, PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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 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
5.3 Sustainability
24.38% 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.
DP24.38%
EPS Next 2Y9.55%
EPS Next 3Y8.78%
840.63
-3.38 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change3.19%
Ins Owners0.15%
Ins Owner Change-0.83%
Market Cap106.37B
Revenue(TTM)19.85B
Net Income(TTM)3.53B
Analysts80
Price Target816.74 (-2.84%)
Short Float %1.07%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP24.38%
Div Incr Years8
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.69%
Min EPS beat(2)0.28%
Max EPS beat(2)5.1%
EPS beat(4)3
Avg EPS beat(4)1.29%
Min EPS beat(4)-1.98%
Max EPS beat(4)5.1%
EPS beat(8)7
Avg EPS beat(8)4.49%
EPS beat(12)11
Avg EPS beat(12)6.05%
EPS beat(16)15
Avg EPS beat(16)6.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)-0.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.44%
Revenue beat(8)0
Avg Revenue beat(8)-2.59%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)1.56%
PT rev (3m)7.71%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.62 | ||
| Fwd PE | 25.6 | ||
| P/S | 5.36 | ||
| P/FCF | 31.84 | ||
| P/OCF | 28.17 | ||
| P/B | 7.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.72 |
EPS(TTM)28.38
EY3.38%
EPS(NY)32.83
Fwd EY3.91%
FCF(TTM)26.4
FCFY3.14%
OCF(TTM)29.84
OCFY3.55%
SpS156.87
BVpS108.12
TBVpS-34.66
PEG (NY)2.98
PEG (5Y)1.45
Graham Number262.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROCE | 17.66% | ||
| ROIC | 14.58% | ||
| ROICexc | 14.88% | ||
| ROICexgc | 67.17% | ||
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% | ||
| FCFM | 16.83% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 10.89 | ||
| Cash Conversion | 74.21% | ||
| Profit Quality | 94.62% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 6.27 |
F-Score7
WACC9.38%
ROIC/WACC1.55
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 3Y8.78%
EPS Next 5Y8.54%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.2%
Revenue Next 5Y5.17%
EBIT growth 1Y5.71%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y10.48%
EBIT Next 5Y9.13%
FCF growth 1Y11.96%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y11.57%
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 29.62 and the Price/Book (PB) ratio is 7.77.
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 24.38%.