Why PARKER HANNIFIN CORP (NYSE:PH) qualifies as a quality stock.

In this article we will dive into PARKER HANNIFIN CORP (NYSE:PH) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PARKER HANNIFIN CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of PARKER HANNIFIN CORP

• Over the past 5 years, PARKER HANNIFIN CORP has experienced impressive revenue growth, with 5.92% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• PARKER HANNIFIN CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 95.73% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 4.83, PARKER HANNIFIN CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a robust Profit Quality (5-year) ratio of 136.0%, PARKER HANNIFIN CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• PARKER HANNIFIN CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 7.87%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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.

What is the full fundamental picture of NYSE:PH telling us.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

PH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Machinery industry. While PH has a great profitability rating, there are quite some concerns on its financial health. PH has a correct valuation and a medium growth rate.

Check the latest full fundamental report of PH for a complete fundamental analysis.

More quality stocks can be found 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.