PARKER HANNIFIN CORP (1PH.MI) Stock Fundamental Analysis
Europe - BIT:1PH - US7010941042 - Common Stock
489.9 EUR
+26.5 (+5.72%)
We assign a fundamental rating of 5 out of 10 to 1PH. 1PH was compared to 102 industry peers in the Machinery industry. 1PH has an excellent profitability rating, but there are some minor concerns on its financial health. 1PH does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year 1PH was profitable.
In the past year 1PH had a positive cash flow from operations.
1PH had positive earnings in each of the past 5 years.
In the past 5 years 1PH always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.17%, 1PH belongs to the best of the industry, outperforming 92.45% of the companies in the same industry.
The Return On Equity of 1PH (24.08%) is better than 90.57% of its industry peers.
With an excellent Return On Invested Capital value of 14.21%, 1PH belongs to the best of the industry, outperforming 91.51% of the companies in the same industry.
1PH had an Average Return On Invested Capital over the past 3 years of 11.38%. This is above the industry average of 9.17%.
The 3 year average ROIC (11.38%) for 1PH is below the current ROIC(14.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 24.08% | ||
| ROIC | 14.21% |
ROA(3y)7.24%
ROA(5y)7.28%
ROE(3y)19.53%
ROE(5y)19.82%
ROIC(3y)11.38%
ROIC(5y)10.72%
1.3 Margins
The Profit Margin of 1PH (15.87%) is better than 95.28% of its industry peers.
In the last couple of years the Profit Margin of 1PH has grown nicely.
Looking at the Operating Margin, with a value of 20.28%, 1PH belongs to the top of the industry, outperforming 94.34% of the companies in the same industry.
1PH's Operating Margin has improved in the last couple of years.
The Gross Margin of 1PH (36.24%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1PH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.28% | ||
| PM (TTM) | 15.87% | ||
| GM | 36.24% |
OM growth 3Y5.61%
OM growth 5Y6.57%
PM growth 3Y5.45%
PM growth 5Y6.21%
GM growth 3Y2.6%
GM growth 5Y7.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1PH is still creating some value.
The number of shares outstanding for 1PH remains at a similar level compared to 1 year ago.
The number of shares outstanding for 1PH has been increased compared to 5 years ago.
Compared to 1 year ago, 1PH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.03 indicates that 1PH is not in any danger for bankruptcy at the moment.
1PH has a better Altman-Z score (5.03) than 95.28% of its industry peers.
The Debt to FCF ratio of 1PH is 2.74, which is a good value as it means it would take 1PH, 2.74 years of fcf income to pay off all of its debts.
1PH has a better Debt to FCF ratio (2.74) than 75.47% of its industry peers.
1PH has a Debt/Equity ratio of 0.51. This is a neutral value indicating 1PH is somewhat dependend on debt financing.
1PH has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.46
WACC9.75%
2.3 Liquidity
1PH has a Current Ratio of 1.06. This is a normal value and indicates that 1PH is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.06, 1PH is not doing good in the industry: 77.36% of the companies in the same industry are doing better.
1PH has a Quick Ratio of 1.06. This is a bad value and indicates that 1PH is not financially healthy enough and could expect problems in meeting its short term obligations.
1PH's Quick ratio of 0.59 is on the low side compared to the rest of the industry. 1PH is outperformed by 83.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
1PH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.04%.
Measured over the past years, 1PH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.50% on average per year.
Looking at the last year, 1PH shows a small growth in Revenue. The Revenue has grown by 4.53% in the last year.
Measured over the past years, 1PH shows a small growth in Revenue. The Revenue has been growing by 6.83% on average per year.
EPS 1Y (TTM)7.04%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%6.61%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-2.25%
3.2 Future
1PH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.49% yearly.
Based on estimates for the next years, 1PH will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
EPS Next Y8.43%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
EPS Next 5Y7.49%
Revenue Next Year0.16%
Revenue Next 2Y2.32%
Revenue Next 3Y3.4%
Revenue Next 5Y4.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.02, 1PH is valued on the expensive side.
1PH's Price/Earnings ratio is in line with the industry average.
1PH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
1PH is valuated rather expensively with a Price/Forward Earnings ratio of 18.59.
1PH's Price/Forward Earnings ratio is in line with the industry average.
1PH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 18.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PH indicates a slightly more expensive valuation: 1PH is more expensive than 69.81% of the companies listed in the same industry.
1PH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.69 | ||
| EV/EBITDA | 16.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PH does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 1PH may justify a higher PE ratio.
PEG (NY)2.49
PEG (5Y)1.27
EPS Next 2Y8.49%
EPS Next 3Y8.5%
5. Dividend
5.1 Amount
1PH has a Yearly Dividend Yield of 1.18%.
1PH's Dividend Yield is comparable with the industry average which is at 2.55.
Compared to an average S&P500 Dividend Yield of 2.38, 1PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of 1PH is nicely growing with an annual growth rate of 13.91%!
Dividend Growth(5Y)13.91%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
25.99% of the earnings are spent on dividend by 1PH. This is a low number and sustainable payout ratio.
The dividend of 1PH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.99%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
BIT:1PH (4/22/2025, 7:00:00 PM)
489.9
+26.5 (+5.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.35%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap63.08B
Analysts81.29
Price Target608.75 (24.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend5.36
Dividend Growth(5Y)13.91%
DP25.99%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.11%
Min EPS beat(2)-1.98%
Max EPS beat(2)1.76%
EPS beat(4)3
Avg EPS beat(4)2.06%
Min EPS beat(4)-1.98%
Max EPS beat(4)5.69%
EPS beat(8)7
Avg EPS beat(8)6.64%
EPS beat(12)11
Avg EPS beat(12)6.27%
EPS beat(16)14
Avg EPS beat(16)6.37%
Revenue beat(2)0
Avg Revenue beat(2)-3.47%
Min Revenue beat(2)-4.13%
Max Revenue beat(2)-2.81%
Revenue beat(4)0
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.9%
Revenue beat(8)1
Avg Revenue beat(8)-1.87%
Revenue beat(12)4
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)-0.97%
PT rev (1m)-17.19%
PT rev (3m)-15.7%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-3.61%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-3.84%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 18.59 | ||
| P/S | 3.59 | ||
| P/FCF | 21.69 | ||
| P/OCF | 19.28 | ||
| P/B | 5.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.2 |
EPS(TTM)23.31
EY4.76%
EPS(NY)26.35
Fwd EY5.38%
FCF(TTM)22.58
FCFY4.61%
OCF(TTM)25.41
OCFY5.19%
SpS136.31
BVpS89.82
TBVpS-32.07
PEG (NY)2.49
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 24.08% | ||
| ROCE | 18.12% | ||
| ROIC | 14.21% | ||
| ROICexc | 14.47% | ||
| ROICexgc | 77.49% | ||
| OM | 20.28% | ||
| PM (TTM) | 15.87% | ||
| GM | 36.24% | ||
| FCFM | 16.57% |
ROA(3y)7.24%
ROA(5y)7.28%
ROE(3y)19.53%
ROE(5y)19.82%
ROIC(3y)11.38%
ROIC(5y)10.72%
ROICexc(3y)11.63%
ROICexc(5y)11.05%
ROICexgc(3y)46.12%
ROICexgc(5y)42.17%
ROCE(3y)15.73%
ROCE(5y)14.4%
ROICexcg growth 3Y14.15%
ROICexcg growth 5Y6.29%
ROICexc growth 3Y4.37%
ROICexc growth 5Y-2.26%
OM growth 3Y5.61%
OM growth 5Y6.57%
PM growth 3Y5.45%
PM growth 5Y6.21%
GM growth 3Y2.6%
GM growth 5Y7.21%
F-Score9
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 45.14% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.96% | ||
| Profit Quality | 104.44% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 5.03 |
F-Score9
WACC9.75%
ROIC/WACC1.46
Cap/Depr(3y)43.31%
Cap/Depr(5y)41.69%
Cap/Sales(3y)1.82%
Cap/Sales(5y)1.72%
Profit Quality(3y)132.61%
Profit Quality(5y)137.14%
High Growth Momentum
Growth
EPS 1Y (TTM)7.04%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%6.61%
EPS Next Y8.43%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
EPS Next 5Y7.49%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-2.25%
Revenue Next Year0.16%
Revenue Next 2Y2.32%
Revenue Next 3Y3.4%
Revenue Next 5Y4.01%
EBIT growth 1Y6.84%
EBIT growth 3Y17.83%
EBIT growth 5Y13.85%
EBIT Next Year23.54%
EBIT Next 3Y12.84%
EBIT Next 5Y8.69%
FCF growth 1Y49.78%
FCF growth 3Y8.06%
FCF growth 5Y14.22%
OCF growth 1Y47.71%
OCF growth 3Y9.54%
OCF growth 5Y14.36%