PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PAR - US7010941042 - Common Stock
745.2 EUR
+2.2 (+0.3%)
Overall PAR gets a fundamental rating of 5 out of 10. We evaluated PAR against 108 industry peers in the Machinery industry. PAR has an excellent profitability rating, but there are some minor concerns on its financial health. PAR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PAR was profitable.
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 (11.87%) is better than 93.52% of its industry peers.
PAR has a better Return On Equity (26.43%) than 92.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.75%, PAR belongs to the top of the industry, outperforming 89.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PAR is above the industry average of 8.99%.
The last Return On Invested Capital (14.75%) for PAR is above the 3 year average (12.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROIC | 14.75% |
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
PAR has a better Profit Margin (18.18%) than 97.22% of its industry peers.
In the last couple of years the Profit Margin of PAR has grown nicely.
PAR's Operating Margin of 21.31% is amongst the best of the industry. PAR outperforms 93.52% of its industry peers.
In the last couple of years the Operating Margin of PAR has grown nicely.
PAR has a Gross Margin of 37.20%. This is comparable to the rest of the industry: PAR outperforms 46.30% of its industry peers.
In the last couple of years the Gross Margin of PAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% |
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.
PAR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PAR has been reduced compared to 5 years ago.
Compared to 1 year ago, PAR has an improved debt to assets ratio.
2.2 Solvency
PAR has an Altman-Z score of 6.03. This indicates that PAR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PAR (6.03) is better than 94.44% of its industry peers.
The Debt to FCF ratio of PAR is 3.05, which is a good value as it means it would take PAR, 3.05 years of fcf income to pay off all of its debts.
PAR has a better Debt to FCF ratio (3.05) than 71.30% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that PAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, PAR is in line with its industry, outperforming 43.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.03 |
ROIC/WACC1.61
WACC9.17%
2.3 Liquidity
A Current Ratio of 1.07 indicates that PAR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.07, PAR is doing worse than 75.93% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that PAR may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, PAR is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
PAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.73%, which is quite good.
Measured over the past years, PAR shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.50% on average per year.
Looking at the last year, PAR shows a small growth in Revenue. The Revenue has grown by 0.22% in the last year.
Measured over the past years, PAR shows a small growth in Revenue. The Revenue has been growing by 7.70% on average per year.
EPS 1Y (TTM)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
3.2 Future
Based on estimates for the next years, PAR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.54% on average per year.
The Revenue is expected to grow by 5.17% on average over the next years.
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.78%
EPS Next 5Y8.54%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.2%
Revenue Next 5Y5.17%
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.
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
The Price/Earnings ratio is 30.42, which means the current valuation is very expensive for PAR.
PAR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. PAR is around the same levels.
With a Price/Forward Earnings ratio of 26.30, PAR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PAR is valued a bit more expensive than the industry average as 68.52% of the companies are valued more cheaply.
PAR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 26.3 |
4.2 Price Multiples
PAR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PAR is more expensive than 76.85% of the companies 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 65.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.27 | ||
| EV/EBITDA | 23 |
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.
PAR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)1.48
EPS Next 2Y9.55%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, PAR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.47, PAR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of PAR is nicely growing with an annual growth rate of 13.82%!
Dividend Growth(5Y)13.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
24.15% 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.
DP24.15%
EPS Next 2Y9.55%
EPS Next 3Y8.78%
FRA:PAR (11/27/2025, 7:00:00 PM)
745.2
+2.2 (+0.3%)
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 Cap94.30B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target791.11 (6.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend5.86
Dividend Growth(5Y)13.82%
DP24.15%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.44%
Min EPS beat(2)5.1%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)3.23%
Min EPS beat(4)0.28%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)4.1%
EPS beat(12)11
Avg EPS beat(12)5.66%
EPS beat(16)15
Avg EPS beat(16)6.07%
Revenue beat(2)0
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)2
Avg Revenue beat(12)-1.4%
Revenue beat(16)4
Avg Revenue beat(16)-0.95%
PT rev (1m)14.32%
PT rev (3m)15.73%
EPS NQ rev (1m)4.51%
EPS NQ rev (3m)4.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)2.09%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 26.3 | ||
| P/S | 5.45 | ||
| P/FCF | 32.27 | ||
| P/OCF | 28.65 | ||
| P/B | 7.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23 |
EPS(TTM)24.5
EY3.29%
EPS(NY)28.34
Fwd EY3.8%
FCF(TTM)23.09
FCFY3.1%
OCF(TTM)26.01
OCFY3.49%
SpS136.62
BVpS93.97
TBVpS-34.95
PEG (NY)3.06
PEG (5Y)1.48
Graham Number227.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROCE | 17.86% | ||
| ROIC | 14.75% | ||
| ROICexc | 15.05% | ||
| ROICexgc | 77.92% | ||
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% | ||
| FCFM | 16.9% |
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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 47.11% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.64% | ||
| Profit Quality | 92.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 6.03 |
F-Score7
WACC9.17%
ROIC/WACC1.61
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)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.78%
EPS Next 5Y8.54%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.2%
Revenue Next 5Y5.17%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y10.48%
EBIT Next 5Y9.13%
FCF growth 1Y21.88%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y20.22%
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.