PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - FRA:PAR - US7010941042 - Common Stock
667.8 EUR
+0.8 (+0.12%)
Overall PAR gets a fundamental rating of 5 out of 10. We evaluated PAR against 107 industry peers in the Machinery industry. While PAR has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, PAR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
PAR had positive earnings in the past year.
PAR had a positive operating cash flow in the past year.
In the past 5 years PAR has always been profitable.
PAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PAR (11.97%) is better than 94.39% of its industry peers.
With an excellent Return On Equity value of 25.81%, PAR belongs to the best of the industry, outperforming 92.52% of the companies in the same industry.
PAR has a better Return On Invested Capital (14.58%) than 90.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PAR is above the industry average of 8.77%.
The last Return On Invested Capital (14.58%) for PAR is above the 3 year average (12.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROIC | 14.58% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
1.3 Margins
With an excellent Profit Margin value of 17.79%, PAR belongs to the best of the industry, outperforming 97.20% of the companies in the same industry.
PAR's Profit Margin has improved in the last couple of years.
PAR has a Operating Margin of 21.06%. This is amongst the best in the industry. PAR outperforms 93.46% of its industry peers.
PAR's Operating Margin has improved in the last couple of years.
PAR has a Gross Margin (37.01%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% |
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PAR is creating some value.
Compared to 1 year ago, PAR has less shares outstanding
PAR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PAR has been reduced compared to a year ago.
2.2 Solvency
PAR has an Altman-Z score of 5.91. This indicates that PAR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.91, PAR belongs to the top of the industry, outperforming 95.33% of the companies in the same industry.
The Debt to FCF ratio of PAR is 2.78, which is a good value as it means it would take PAR, 2.78 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.78, PAR is doing good in the industry, outperforming 72.90% of the companies in the same industry.
PAR has a Debt/Equity ratio of 0.55. This is a neutral value indicating PAR is somewhat dependend on debt financing.
PAR's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. PAR outperforms 41.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 5.91 |
ROIC/WACC1.56
WACC9.33%
2.3 Liquidity
A Current Ratio of 1.19 indicates that PAR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, PAR is not doing good in the industry: 70.09% of the companies in the same industry are doing better.
A Quick Ratio of 0.71 indicates that PAR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, PAR is doing worse than 78.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.76% over the past year.
The Earnings Per Share has been growing by 20.50% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.40% in the past year.
The Revenue has been growing slightly by 7.70% on average over the past years.
EPS 1Y (TTM)7.76%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%13.59%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
3.2 Future
PAR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.57% yearly.
PAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.19% yearly.
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.85%
EPS Next 5Y8.57%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.17%
Revenue Next 5Y5.19%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.05, PAR can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as PAR.
The average S&P500 Price/Earnings ratio is at 26.13. PAR is around the same levels.
PAR is valuated quite expensively with a Price/Forward Earnings ratio of 25.51.
Based on the Price/Forward Earnings ratio, PAR is valued a bit more expensive than 70.09% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, PAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 25.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAR indicates a slightly more expensive valuation: PAR is more expensive than 78.50% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAR indicates a slightly more expensive valuation: PAR is more expensive than 62.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.07 | ||
| EV/EBITDA | 20.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PAR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PAR may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)1.37
EPS Next 2Y9.55%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, PAR is not a good candidate for dividend investing.
PAR's Dividend Yield is comparable with the industry average which is at 2.62.
Compared to an average S&P500 Dividend Yield of 2.39, PAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
On average, the dividend of PAR grows each year by 13.82%, which is quite nice.
Dividend Growth(5Y)13.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
24.38% of the earnings are spent on dividend by PAR. This is a low number and sustainable payout ratio.
PAR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.38%
EPS Next 2Y9.55%
EPS Next 3Y8.85%
FRA:PAR (11/5/2025, 7:00:00 PM)
667.8
+0.8 (+0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap84.50B
Revenue(TTM)19.85B
Net Income(TTM)3.53B
Analysts80
Price Target701.51 (5.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend5.84
Dividend Growth(5Y)13.82%
DP24.38%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.69%
Min EPS beat(2)0.28%
Max EPS beat(2)5.1%
EPS beat(4)3
Avg EPS beat(4)1.29%
Min EPS beat(4)-1.98%
Max EPS beat(4)5.1%
EPS beat(8)7
Avg EPS beat(8)4.49%
EPS beat(12)11
Avg EPS beat(12)6.05%
EPS beat(16)15
Avg EPS beat(16)6.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)-0.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.44%
Revenue beat(8)0
Avg Revenue beat(8)-2.59%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)3.37%
PT rev (3m)7.24%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 25.51 | ||
| P/S | 4.89 | ||
| P/FCF | 29.07 | ||
| P/OCF | 25.72 | ||
| P/B | 7.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.82 |
EPS(TTM)23.81
EY3.57%
EPS(NY)26.18
Fwd EY3.92%
FCF(TTM)22.97
FCFY3.44%
OCF(TTM)25.97
OCFY3.89%
SpS136.5
BVpS94.09
TBVpS-30.16
PEG (NY)2.82
PEG (5Y)1.37
Graham Number224.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROCE | 17.66% | ||
| ROIC | 14.58% | ||
| ROICexc | 14.88% | ||
| ROICexgc | 67.17% | ||
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% | ||
| FCFM | 16.83% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
ROICexc(3y)13.07%
ROICexc(5y)12.53%
ROICexgc(3y)57.33%
ROICexgc(5y)47.27%
ROCE(3y)16.85%
ROCE(5y)15.77%
ROICexgc growth 3Y28.45%
ROICexgc growth 5Y7.06%
ROICexc growth 3Y6.87%
ROICexc growth 5Y8.17%
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 10.89 | ||
| Cash Conversion | 74.21% | ||
| Profit Quality | 94.62% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 5.91 |
F-Score7
WACC9.33%
ROIC/WACC1.56
Cap/Depr(3y)45.89%
Cap/Depr(5y)42.63%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.82%
Profit Quality(3y)108.11%
Profit Quality(5y)125.58%
High Growth Momentum
Growth
EPS 1Y (TTM)7.76%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%13.59%
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.85%
EPS Next 5Y8.57%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.17%
Revenue Next 5Y5.19%
EBIT growth 1Y5.71%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y10.52%
EBIT Next 5Y9.14%
FCF growth 1Y11.96%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y11.57%
OCF growth 3Y15.64%
OCF growth 5Y12.77%
PARKER HANNIFIN CORP / PAR.DE FAQ
What is the fundamental rating for PAR stock?
ChartMill assigns a fundamental rating of 5 / 10 to PAR.DE.
What is the valuation status of PARKER HANNIFIN CORP (PAR.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to PARKER HANNIFIN CORP (PAR.DE). This can be considered as Overvalued.
How profitable is PARKER HANNIFIN CORP (PAR.DE) stock?
PARKER HANNIFIN CORP (PAR.DE) has a profitability rating of 9 / 10.
Can you provide the financial health for PAR stock?
The financial health rating of PARKER HANNIFIN CORP (PAR.DE) is 5 / 10.
Can you provide the expected EPS growth for PAR stock?
The Earnings per Share (EPS) of PARKER HANNIFIN CORP (PAR.DE) is expected to grow by 9.95% in the next year.