Why the quality investor may take a look at NYSE:PH.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PARKER HANNIFIN CORP (NYSE:PH) is suited for quality investing. Investors should of couse do their own research, but we spotted PARKER HANNIFIN CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:PH highlighted

• PARKER HANNIFIN CORP has shown strong performance in revenue growth over the past 5 years, with a 5.92% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 95.73%, PARKER HANNIFIN CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• PARKER HANNIFIN CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.83, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• The Profit Quality (5-year) of PARKER HANNIFIN CORP stands at 136.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• PARKER HANNIFIN CORP has consistently achieved strong EBIT growth over the past 5 years, with a 7.87% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of PARKER HANNIFIN CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

PH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 industry peers in the Machinery industry. PH scores excellent on profitability, but there are concerns on its financial health. PH is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of PH contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.