Why Quality Investors May Find PARKER HANNIFIN CORP (NYSE:PH) Attractive.

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.

Some of the quality metrics of NYSE:PH highlighted

• PARKER HANNIFIN CORP has demonstrated significant revenue growth over the past 5 years, with a 6.83% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• PARKER HANNIFIN CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 89.3% 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 3.31, 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.
• The Profit Quality (5-year) of PARKER HANNIFIN CORP stands at 137.0%, 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 13.85%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, PH scores 5 out of 10 in our fundamental rating. PH was compared to 131 industry peers in the Machinery industry. While PH has a great profitability rating, there are quite some concerns on its financial health. PH is quite expensive at the moment. It does show a decent 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 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.