PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PH - US7010941042 - Common Stock
944.27 USD
-0.31 (-0.03%)
944.27 USD
0 (0%)
PH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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.
- Each year in the past 5 years PH has been profitable.
- PH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 11.87%, PH belongs to the best of the industry, outperforming 84.85% 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 93.94% of its industry peers.
- The Return On Invested Capital of PH (14.75%) is better than 86.36% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PH is above the industry average of 10.24%.
- The 3 year average ROIC (12.83%) for PH is below the current ROIC(14.75%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 18.18%, PH belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
- In the last couple of years the Profit Margin of PH has grown nicely.
- PH's Operating Margin of 21.31% is amongst the best of the industry. PH outperforms 91.67% of its industry peers.
- PH's Operating Margin has improved in the last couple of years.
- The Gross Margin of PH (37.20%) is better than 70.45% of its industry peers.
- In the last couple of years the Gross Margin of PH has grown nicely.
| 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
- 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.
2.2 Solvency
- An Altman-Z score of 6.38 indicates that PH is not in any danger for bankruptcy at the moment.
- PH has a better Altman-Z score (6.38) than 86.36% of its industry peers.
- 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 68.18% 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.
- The Debt to Equity ratio of PH (0.54) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.38 |
ROIC/WACC1.57
WACC9.4%
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 86.36% of its industry peers.
- PH has a Quick Ratio of 1.07. 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 0.61, PH is doing worse than 85.61% of the companies in the same industry.
| 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.
- PH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.50% yearly.
- The Revenue has been growing slightly by 0.22% in the past year.
- Measured over the past years, PH shows a small growth in Revenue. The Revenue has been growing by 7.70% on average per year.
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
- PH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.19% yearly.
- PH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.
EPS Next Y14.02%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
EPS Next 5Y9.19%
Revenue Next Year6.86%
Revenue Next 2Y6.85%
Revenue Next 3Y6.46%
Revenue Next 5Y5.48%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 33.27 indicates a quite expensive valuation of PH.
- Compared to the rest of the industry, the Price/Earnings ratio of PH is on the same level as its industry peers.
- PH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.47.
- A Price/Forward Earnings ratio of 27.66 indicates a quite expensive valuation of PH.
- The rest of the industry has a similar Price/Forward Earnings ratio as PH.
- PH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.27 | ||
| Fwd PE | 27.66 |
4.2 Price Multiples
- 67.42% of the companies in the same industry are cheaper than PH, based on the Enterprise Value to EBITDA ratio.
- PH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.2 | ||
| EV/EBITDA | 24.92 |
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)2.37
PEG (5Y)1.62
EPS Next 2Y11.7%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
- PH has a yearly dividend return of 0.79%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.78, PH pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.87, PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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
- PH pays out 24.15% 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.
DP24.15%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
944.27
-0.31 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)01-29 2026-01-29/bmo
Inst Owners89.97%
Inst Owner Change0.2%
Ins Owners0.14%
Ins Owner Change-1.22%
Market Cap119.16B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.61
Price Target944.05 (-0.02%)
Short Float %1.12%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP24.15%
Div Incr Years8
Div Non Decr Years34
Ex-DateN/A
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)1.97%
PT rev (3m)17.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.72%
EPS NY rev (1m)0.02%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.27 | ||
| Fwd PE | 27.66 | ||
| P/S | 5.95 | ||
| P/FCF | 35.2 | ||
| P/OCF | 31.24 | ||
| P/B | 8.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.92 |
EPS(TTM)28.38
EY3.01%
EPS(NY)34.14
Fwd EY3.62%
FCF(TTM)26.83
FCFY2.84%
OCF(TTM)30.22
OCFY3.2%
SpS158.73
BVpS109.18
TBVpS-40.61
PEG (NY)2.37
PEG (5Y)1.62
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 | 6.38 |
F-Score7
WACC9.4%
ROIC/WACC1.57
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 Y14.02%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year6.86%
Revenue Next 2Y6.85%
Revenue Next 3Y6.46%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year24.49%
EBIT Next 3Y13.2%
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 for 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.
How financially healthy is PARKER HANNIFIN CORP?
The financial health rating of PARKER HANNIFIN CORP (PH) is 5 / 10.
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 14.02% in the next year.