PARKER HANNIFIN CORP (PH) Fundamental Analysis & Valuation

NYSE:PH • US7010941042

Current stock price

921.56 USD
-3.02 (-0.33%)
At close:
921.56 USD
0 (0%)
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This PH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. PH Profitability Analysis

1.1 Basic Checks

  • PH had positive earnings in the past year.
  • In the past year PH had a positive cash flow from operations.
  • In the past 5 years PH has always been profitable.
  • PH had a positive operating cash flow in each of the past 5 years.
PH Yearly Net Income VS EBIT VS OCF VS FCFPH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • With an excellent Return On Assets value of 11.59%, PH belongs to the best of the industry, outperforming 87.79% of the companies in the same industry.
  • The Return On Equity of PH (24.72%) is better than 93.13% of its industry peers.
  • PH has a better Return On Invested Capital (14.92%) than 90.08% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for PH is above the industry average of 10.17%.
  • The 3 year average ROIC (12.83%) for PH is below the current ROIC(14.92%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 11.59%
ROE 24.72%
ROIC 14.92%
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
PH Yearly ROA, ROE, ROICPH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • Looking at the Profit Margin, with a value of 17.29%, PH belongs to the top of the industry, outperforming 93.13% of the companies in the same industry.
  • In the last couple of years the Profit Margin of PH has grown nicely.
  • PH has a Operating Margin of 21.56%. This is amongst the best in the industry. PH outperforms 93.89% of its industry peers.
  • In the last couple of years the Operating Margin of PH has grown nicely.
  • With a decent Gross Margin value of 37.43%, PH is doing good in the industry, outperforming 70.23% of the companies in the same industry.
  • PH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 21.56%
PM (TTM) 17.29%
GM 37.43%
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
PH Yearly Profit, Operating, Gross MarginsPH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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5

2. PH Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PH is 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
  • The debt/assets ratio for PH has been reduced compared to a year ago.
PH Yearly Shares OutstandingPH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
PH Yearly Total Debt VS Total AssetsPH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • PH has an Altman-Z score of 6.57. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
  • PH's Altman-Z score of 6.57 is amongst the best of the industry. PH outperforms 83.97% of its industry peers.
  • The Debt to FCF ratio of PH is 2.96, which is a good value as it means it would take PH, 2.96 years of fcf income to pay off all of its debts.
  • PH has a better Debt to FCF ratio (2.96) than 71.76% of its industry peers.
  • PH has a Debt/Equity ratio of 0.52. This is a neutral value indicating PH is somewhat dependend on debt financing.
  • PH has a Debt to Equity ratio (0.52) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 2.96
Altman-Z 6.57
ROIC/WACC1.49
WACC10.02%
PH Yearly LT Debt VS Equity VS FCFPH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • PH has a Current Ratio of 1.18. 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 (1.18) is worse than 83.21% of its industry peers.
  • A Quick Ratio of 0.66 indicates that PH may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.66, PH is not doing good in the industry: 83.21% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 0.66
PH Yearly Current Assets VS Current LiabilitesPH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. PH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 13.42% 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 2.78% 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)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%9.1%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.34% on average over the next years. This is quite good.
  • PH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
EPS Next Y16.52%
EPS Next 2Y13.18%
EPS Next 3Y12%
EPS Next 5Y10.34%
Revenue Next Year7.82%
Revenue Next 2Y7.63%
Revenue Next 3Y6.93%
Revenue Next 5Y5.55%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PH Yearly Revenue VS EstimatesPH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
PH Yearly EPS VS EstimatesPH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30 40

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2

4. PH Valuation Analysis

4.1 Price/Earnings Ratio

  • PH is valuated quite expensively with a Price/Earnings ratio of 31.24.
  • PH's Price/Earnings ratio is in line with the industry average.
  • PH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.61.
  • A Price/Forward Earnings ratio of 26.29 indicates a quite expensive valuation of PH.
  • PH's Price/Forward Earnings ratio is in line with the industry average.
  • PH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 31.24
Fwd PE 26.29
PH Price Earnings VS Forward Price EarningsPH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than the industry average as 67.94% of the companies are valued more cheaply.
  • PH's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 34.83
EV/EBITDA 23.67
PH Per share dataPH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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)1.89
PEG (5Y)1.52
EPS Next 2Y13.18%
EPS Next 3Y12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. PH Dividend Analysis

5.1 Amount

  • PH has a yearly dividend return of 0.80%, which is pretty low.
  • PH's Dividend Yield is comparable with the industry average which is at 1.22.
  • With a Dividend Yield of 0.80, PH pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.8%

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
PH Yearly Dividends per sharePH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • PH pays out 25.36% of its income as dividend. This is a sustainable payout ratio.
  • PH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.36%
EPS Next 2Y13.18%
EPS Next 3Y12%
PH Yearly Income VS Free CF VS DividendPH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
PH Dividend Payout.PH Dividend Payout, showing the Payout Ratio.PH Dividend Payout.PayoutRetained Earnings

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PH Fundamentals: All Metrics, Ratios and Statistics

PARKER HANNIFIN CORP

NYSE:PH (3/25/2026, 8:04:00 PM)

After market: 921.56 0 (0%)

921.56

-3.02 (-0.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-29
Inst Owners90.3%
Inst Owner Change0.57%
Ins Owners0.14%
Ins Owner Change-0.23%
Market Cap116.32B
Revenue(TTM)20.46B
Net Income(TTM)3.54B
Analysts80
Price Target1040.13 (12.87%)
Short Float %1.3%
Short Ratio2.29
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP25.36%
Div Incr Years8
Div Non Decr Years34
Ex-Date02-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.68%
Min EPS beat(2)3.57%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)3.69%
Min EPS beat(4)0.28%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)2.87%
EPS beat(12)11
Avg EPS beat(12)5.66%
EPS beat(16)15
Avg EPS beat(16)5.62%
Revenue beat(2)0
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-0.86%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-1.93%
Revenue beat(12)1
Avg Revenue beat(12)-1.65%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)1.03%
PT rev (3m)10.18%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)0.15%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.9%
Valuation
Industry RankSector Rank
PE 31.24
Fwd PE 26.29
P/S 5.68
P/FCF 34.83
P/OCF 31.09
P/B 8.13
P/tB N/A
EV/EBITDA 23.67
EPS(TTM)29.5
EY3.2%
EPS(NY)35.05
Fwd EY3.8%
FCF(TTM)26.46
FCFY2.87%
OCF(TTM)29.64
OCFY3.22%
SpS162.11
BVpS113.38
TBVpS-35.24
PEG (NY)1.89
PEG (5Y)1.52
Graham Number274.33
Profitability
Industry RankSector Rank
ROA 11.59%
ROE 24.72%
ROCE 18.06%
ROIC 14.92%
ROICexc 15.18%
ROICexgc 69.54%
OM 21.56%
PM (TTM) 17.29%
GM 37.43%
FCFM 16.32%
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 RankSector Rank
Debt/Equity 0.52
Debt/FCF 2.96
Debt/EBITDA 1.4
Cap/Depr 43.78%
Cap/Sales 1.96%
Interest Coverage 250
Cash Conversion 70.2%
Profit Quality 94.42%
Current Ratio 1.18
Quick Ratio 0.66
Altman-Z 6.57
F-Score7
WACC10.02%
ROIC/WACC1.49
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)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
EPS Next Y16.52%
EPS Next 2Y13.18%
EPS Next 3Y12%
EPS Next 5Y10.34%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%9.1%
Revenue Next Year7.82%
Revenue Next 2Y7.63%
Revenue Next 3Y6.93%
Revenue Next 5Y5.55%
EBIT growth 1Y9.29%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year26.92%
EBIT Next 3Y14.15%
EBIT Next 5Y9.05%
FCF growth 1Y16.91%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y14.91%
OCF growth 3Y15.64%
OCF growth 5Y12.77%

PARKER HANNIFIN CORP / PH Fundamental Analysis 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 16.52% in the next year.