PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PH - US7010941042 - Common Stock
880 USD
+6.34 (+0.73%)
880 USD
0 (0%)
Taking everything into account, PH scores 6 out of 10 in our fundamental rating. 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.
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
With an excellent Return On Assets value of 11.87%, PH belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.43%, PH belongs to the top of the industry, outperforming 93.08% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.75%, PH belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PH is above the industry average of 10.46%.
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
PH has a better Profit Margin (18.18%) than 94.62% of its industry peers.
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 92.31% of its industry peers.
In the last couple of years the Operating Margin of PH has grown nicely.
PH has a better Gross Margin (37.20%) than 68.46% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PH is still 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.
PH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.09 indicates that PH is not in any danger for bankruptcy at the moment.
PH has a better Altman-Z score (6.09) than 83.85% 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.
The Debt to FCF ratio of PH (3.05) is better than 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.57
WACC9.41%
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 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
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.
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 9.19% yearly.
The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y14%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
EPS Next 5Y9.19%
Revenue Next Year6.84%
Revenue Next 2Y6.84%
Revenue Next 3Y6.43%
Revenue Next 5Y5.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 31.01, 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.
PH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.49.
The Price/Forward Earnings ratio is 25.81, which means the current valuation is very expensive for PH.
PH's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, PH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.01 | ||
| Fwd PE | 25.81 |
4.2 Price Multiples
66.92% 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 | 32.8 | ||
| EV/EBITDA | 23.34 |
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)2.21
PEG (5Y)1.51
EPS Next 2Y11.64%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, PH is not a good candidate for dividend investing.
PH's Dividend Yield is comparable with the industry average which is at 1.84.
With a Dividend Yield of 0.82, PH pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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
24.15% 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 2Y11.64%
EPS Next 3Y10.79%
880
+6.34 (+0.73%)
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 Cap111.05B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.63
Price Target925.84 (5.21%)
Short Float %1.08%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)13.36%
PT rev (3m)15.46%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)4.68%
EPS NY rev (1m)3.68%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)1.83%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.01 | ||
| Fwd PE | 25.81 | ||
| P/S | 5.54 | ||
| P/FCF | 32.8 | ||
| P/OCF | 29.12 | ||
| P/B | 8.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.34 |
EPS(TTM)28.38
EY3.23%
EPS(NY)34.1
Fwd EY3.87%
FCF(TTM)26.83
FCFY3.05%
OCF(TTM)30.22
OCFY3.43%
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
WACC9.41%
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%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year6.84%
Revenue Next 2Y6.84%
Revenue Next 3Y6.43%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year24.47%
EBIT Next 3Y13.18%
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 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 31.01 and the Price/Book (PB) ratio is 8.06.
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%.