Investors should take notice of NASDAQ:PCAR—it offers a great deal for the fundamentals it presents.

Uncover the potential of PACCAR INC (NASDAQ:PCAR) as our stock screener's choice for an undervalued stock. NASDAQ:PCAR maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Analyzing Valuation Metrics

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:PCAR has achieved a 8 out of 10:

• A Price/Earnings ratio of 10.78 indicates a reasonable valuation of PCAR.
• Compared to the rest of the industry, the Price/Earnings ratio of PCAR indicates a rather cheap valuation: PCAR is cheaper than 87.60% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of PCAR to the average of the S&P500 Index (25.56), we can say PCAR is valued rather cheaply.
• 82.95% of the companies in the same industry are more expensive than PCAR, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.55, PCAR is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, PCAR is valued cheaply inside the industry as 80.62% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of PCAR indicates a somewhat cheap valuation: PCAR is cheaper than 75.97% of the companies listed in the same industry.
• PCAR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PCAR has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as PCAR's earnings are expected to grow with 13.05% in the coming years.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PCAR scores a 8 out of 10:

• PCAR's Return On Assets of 10.79% is amongst the best of the industry. PCAR outperforms 84.50% of its industry peers.
• PCAR's Return On Equity of 25.62% is amongst the best of the industry. PCAR outperforms 86.82% of its industry peers.
• PCAR's Return On Invested Capital of 14.69% is amongst the best of the industry. PCAR outperforms 84.50% of its industry peers.
• The last Return On Invested Capital (14.69%) for PCAR is above the 3 year average (8.30%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 12.01%, PCAR belongs to the best of the industry, outperforming 80.62% of the companies in the same industry.
• PCAR's Profit Margin has improved in the last couple of years.
• The Operating Margin of PCAR (17.47%) is better than 86.05% of its industry peers.
• In the last couple of years the Operating Margin of PCAR has grown nicely.

Evaluating Health: NASDAQ:PCAR

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:PCAR, the assigned 5 for health provides valuable insights:

• PCAR has an Altman-Z score of 3.49. This indicates that PCAR is financially healthy and has little risk of bankruptcy at the moment.
• PCAR has a better Altman-Z score (3.49) than 62.02% of its industry peers.
• The Debt to FCF ratio of PCAR (4.25) is better than 62.79% of its industry peers.

Evaluating Growth: NASDAQ:PCAR

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:PCAR was assigned a score of 5 for growth:

• The Earnings Per Share has grown by an impressive 74.30% over the past year.
• Looking at the last year, PCAR shows a very strong growth in Revenue. The Revenue has grown by 24.85%.
• PCAR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.18% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of PCAR

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.