PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PH - US7010941042 - Common Stock
878.96 USD
-9.86 (-1.11%)
880.5 USD
+1.54 (+0.18%)
Taking everything into account, PH scores 6 out of 10 in our fundamental rating. PH was compared to 132 industry peers in the Machinery industry. While PH belongs to the best of the industry regarding profitability, 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.
PH had a positive operating cash flow in the past year.
In the past 5 years PH has always 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 84.85% of the companies in the same industry.
PH has a better Return On Equity (26.43%) than 93.94% of its industry peers.
PH's Return On Invested Capital of 14.75% is amongst the best of the industry. PH outperforms 87.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PH is above the industry average of 10.27%.
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
With an excellent Profit Margin value of 18.18%, PH belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
PH's Profit Margin has improved in the last couple of years.
PH has a Operating Margin of 21.31%. This is amongst the best in the industry. PH outperforms 92.42% of its industry peers.
In the last couple of years the Operating Margin of PH has grown nicely.
PH has a Gross Margin of 37.20%. This is in the better half of the industry: PH outperforms 69.70% 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
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.
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
PH has an Altman-Z score of 6.09. 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 6.09, PH belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
PH has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as PH would need 3.05 years to pay back of all of its debts.
PH's Debt to FCF ratio of 3.05 is fine compared to the rest of the industry. PH outperforms 68.94% of its industry peers.
PH has a Debt/Equity ratio of 0.54. This is a neutral value indicating PH is somewhat dependend on debt financing.
PH has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.59
WACC9.3%
2.3 Liquidity
PH has a Current Ratio of 1.07. This is a normal value and indicates that PH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PH (1.07) is worse than 85.61% 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's Quick ratio of 0.61 is on the low side compared to the rest of the industry. PH is outperformed by 84.85% 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.
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.
PH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.22%.
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 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
PH is valuated quite expensively with a Price/Earnings ratio of 30.97.
Based on the Price/Earnings ratio, PH is valued a bit more expensive than 60.61% of the companies in the same industry.
PH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 25.75, the valuation of PH can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as PH.
PH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.97 | ||
| Fwd PE | 25.75 |
4.2 Price Multiples
65.91% of the companies in the same industry are cheaper than PH, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as PH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.76 | ||
| EV/EBITDA | 23.32 |
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)2.21
PEG (5Y)1.51
EPS Next 2Y11.7%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, PH is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.98, PH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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 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 2Y11.7%
EPS Next 3Y10.88%
878.96
-9.86 (-1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.92%
Inst Owner Change5.71%
Ins Owners0.14%
Ins Owner Change-1.22%
Market Cap110.92B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.63
Price Target944.05 (7.41%)
Short Float %1.12%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)3.76%
PT rev (3m)17.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.69%
EPS NY rev (1m)3.7%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.64%
Revenue NY rev (1m)1.85%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.97 | ||
| Fwd PE | 25.75 | ||
| P/S | 5.54 | ||
| P/FCF | 32.76 | ||
| P/OCF | 29.08 | ||
| P/B | 8.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.32 |
EPS(TTM)28.38
EY3.23%
EPS(NY)34.14
Fwd EY3.88%
FCF(TTM)26.83
FCFY3.05%
OCF(TTM)30.22
OCFY3.44%
SpS158.73
BVpS109.18
TBVpS-40.61
PEG (NY)2.21
PEG (5Y)1.51
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 | 6.09 |
F-Score7
WACC9.3%
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 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.