Analyzing the Quality Characteristics of PARKER HANNIFIN CORP (NYSE:PH).

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.

Exploring Why PH Holds Appeal for Quality Investors.

• PH has shown strong performance in revenue growth over the past 5 years, with a 6.83% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• PH exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 77.49% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 2.74, PH 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.
• PH exhibits impressive Profit Quality (5-year) with a 137.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• PH has experienced impressive EBIT growth over the past 5 years, with 13.85% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• The EBIT 5-year growth of PH 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 else is there to say on the fundamentals of PH?

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.

Overall PH gets a fundamental rating of 5 out of 10. We evaluated PH against 128 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 is valued expensive and it does not seem to be growing.

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 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.