PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - NYSE:PH - US7010941042 - Common Stock
820.67 USD
+3.37 (+0.41%)
We assign a fundamental rating of 5 out of 10 to PH. PH was compared to 130 industry peers in the Machinery industry. While PH has a great profitability rating, 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
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.
Each year in the past 5 years PH had a positive operating cash flow.
1.2 Ratios
PH has a Return On Assets of 11.87%. This is amongst the best in the industry. PH outperforms 86.15% of its industry peers.
The Return On Equity of PH (26.43%) is better than 93.08% of its industry peers.
PH's Return On Invested Capital of 14.66% is amongst the best of the industry. PH outperforms 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 10.24%.
The 3 year average ROIC (12.83%) for PH is below the current ROIC(14.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROIC | 14.66% |
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
The Profit Margin of PH (18.18%) is better than 95.38% of its industry peers.
In the last couple of years the Profit Margin of PH has grown nicely.
With an excellent Operating Margin value of 21.18%, PH belongs to the best of the industry, outperforming 91.54% of the companies in the same industry.
PH's Operating Margin has improved in the last couple of years.
PH has a better Gross Margin (37.15%) than 67.69% of its industry peers.
In the last couple of years the Gross Margin of PH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.18% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.15% |
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.
PH has less shares outstanding than it did 1 year ago.
PH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PH has an improved debt to assets ratio.
2.2 Solvency
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.
PH's Debt to FCF ratio of 3.05 is fine compared to the rest of the industry. PH outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that PH is somewhat dependend on debt financing.
PH has a Debt to Equity ratio (0.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | N/A |
ROIC/WACC1.57
WACC9.35%
2.3 Liquidity
A Current Ratio of 1.07 indicates that PH should not have too much problems paying its short term obligations.
PH's Current ratio of 1.07 is on the low side compared to the rest of the industry. PH is outperformed by 86.15% 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.
PH has a Quick ratio of 0.61. This is amonst the worse of the industry: PH underperforms 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
PH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.73%, which is quite good.
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.
PH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.70% yearly.
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 8.54% yearly.
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
PH is valuated quite expensively with a Price/Earnings ratio of 28.92.
Compared to the rest of the industry, the Price/Earnings ratio of PH indicates a slightly more expensive valuation: PH is more expensive than 60.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.47. PH is around the same levels.
PH is valuated rather expensively with a Price/Forward Earnings ratio of 24.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PH indicates a slightly more expensive valuation: PH is more expensive than 60.77% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PH to the average of the S&P500 Index (35.42), we can say PH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 24.99 |
4.2 Price Multiples
PH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PH is more expensive than 65.38% of the companies in the same industry.
PH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.68 | ||
| EV/EBITDA | 22.07 |
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)2.91
PEG (5Y)1.41
EPS Next 2Y9.55%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, PH is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.87, PH has a dividend in line with its industry peers.
With a Dividend Yield of 0.86, PH pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of PH is nicely growing with an annual growth rate of 13.82%!
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
24.15% 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.
DP24.15%
EPS Next 2Y9.55%
EPS Next 3Y8.78%
NYSE:PH (11/19/2025, 2:58:11 PM)
820.67
+3.37 (+0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change5.7%
Ins Owners0.15%
Ins Owner Change-2.53%
Market Cap103.85B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target816.74 (-0.48%)
Short Float %1.15%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)1.56%
PT rev (3m)7.71%
EPS NQ rev (1m)2.57%
EPS NQ rev (3m)2.65%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 24.99 | ||
| P/S | 5.18 | ||
| P/FCF | 30.68 | ||
| P/OCF | 27.23 | ||
| P/B | 7.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.07 |
EPS(TTM)28.38
EY3.46%
EPS(NY)32.83
Fwd EY4%
FCF(TTM)26.75
FCFY3.26%
OCF(TTM)30.14
OCFY3.67%
SpS158.29
BVpS108.87
TBVpS-40.49
PEG (NY)2.91
PEG (5Y)1.41
Graham Number263.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROCE | 17.75% | ||
| ROIC | 14.66% | ||
| ROICexc | 14.95% | ||
| ROICexgc | 77.43% | ||
| OM | 21.18% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.15% | ||
| 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 | 74.03% | ||
| Profit Quality | 92.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | N/A |
F-Score7
WACC9.35%
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 Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.78%
EPS Next 5Y8.54%
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 3Y5.2%
Revenue Next 5Y5.17%
EBIT growth 1Y5.5%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y10.48%
EBIT Next 5Y9.13%
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 5 / 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 28.92 and the Price/Book (PB) ratio is 7.54.
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%.