PARKER HANNIFIN CORP (NYSE:PH) can be considered a quality stock. Here's why.

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 course 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.

Highlighting Notable Quality Metrics of NYSE:PH.

• 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.
• With a robust ROIC excluding cash and goodwill at 101.0%, 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 4.13, 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.
• The 5-year EBIT growth of PARKER HANNIFIN CORP has been remarkable, with 9.48% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, PARKER HANNIFIN CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Taking everything into account, PH scores 6 out of 10 in our fundamental rating. PH was compared to 132 industry peers in the Machinery industry. While PH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PH has a decent growth rate and is not valued too expensively.

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

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.