PAR Fundamental Analysis - PARKER HANNIFIN CORP

Fundamental Rating

PAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 107 industry peers in the Machinery industry. PAR has an excellent profitability rating, but there are some minor concerns on its financial health. PAR is valued expensive and it does not seem to be growing.

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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.

Each year in the past 5 years PAR has been profitable.

In the past 5 years PAR always reported a positive cash flow from operatings.

1.2 Ratios

With an excellent Return On Assets value of 11.73%, PAR belongs to the best of the industry, outperforming 93.46% of the companies in the same industry.

With an excellent Return On Equity value of 25.34%, PAR belongs to the best of the industry, outperforming 90.65% of the companies in the same industry.

PAR has a Return On Invested Capital of 13.75%. This is amongst the best in the industry. PAR outperforms 89.72% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for PAR is above the industry average of 8.95%.

The last Return On Invested Capital (13.75%) for PAR is above the 3 year average (11.38%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	11.73%
ROE	25.34%
ROIC	13.75%

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

PAR's Profit Margin of 17.14% is amongst the best of the industry. PAR outperforms 96.26% of its industry peers.

In the last couple of years the Profit Margin of PAR has grown nicely.

PAR's Operating Margin of 20.63% is amongst the best of the industry. PAR outperforms 92.52% of its industry peers.

In the last couple of years the Operating Margin of PAR has grown nicely.

PAR's Gross Margin of 36.64% is in line compared to the rest of the industry. PAR outperforms 42.99% of its industry peers.

In the last couple of years the Gross Margin of PAR has grown nicely.

		Industry Rank	Sector Rank
OM	20.63%
PM (TTM)	17.14%
GM	36.64%

OM growth 3Y5.61%

OM growth 5Y6.57%

PM growth 3Y5.45%

PM growth 5Y6.21%

GM growth 3Y2.6%

GM growth 5Y7.21%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PAR is still creating some value.

Compared to 1 year ago, PAR has about the same amount of shares outstanding.

The number of shares outstanding for PAR has been increased compared to 5 years ago.

PAR has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 5.78 indicates that PAR is not in any danger for bankruptcy at the moment.

Looking at the Altman-Z score, with a value of 5.78, PAR belongs to the top of the industry, outperforming 94.39% of the companies in the same industry.

The Debt to FCF ratio of PAR is 3.00, which is a good value as it means it would take PAR, 3.00 years of fcf income to pay off all of its debts.

With a decent Debt to FCF ratio value of 3.00, PAR is doing good in the industry, outperforming 74.77% of the companies in the same industry.

A Debt/Equity ratio of 0.55 indicates that PAR is somewhat dependend on debt financing.

PAR has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.55
Debt/FCF	3
Altman-Z	5.78

ROIC/WACC1.43

WACC9.62%

2.3 Liquidity

A Current Ratio of 1.21 indicates that PAR should not have too much problems paying its short term obligations.

Looking at the Current ratio, with a value of 1.21, PAR is doing worse than 75.70% of the companies in the same industry.

A Quick Ratio of 0.70 indicates that PAR may have some problems paying its short term obligations.

PAR has a Quick ratio of 0.70. This is amonst the worse of the industry: PAR underperforms 82.24% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.21
Quick Ratio	0.7

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.04% over the past year.

Measured over the past years, PAR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.50% on average per year.

PAR shows a decrease in Revenue. In the last year, the revenue decreased by -0.23%.

Measured over the past years, PAR 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)-0.23%

Revenue growth 3Y11.58%

Revenue growth 5Y6.83%

Sales Q2Q%-2.25%

3.2 Future

PAR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.84% yearly.

The Revenue is expected to grow by 3.81% on average over the next years.

EPS Next Y8.59%

EPS Next 2Y8.25%

EPS Next 3Y8.28%

EPS Next 5Y6.84%

Revenue Next Year-0.48%

Revenue Next 2Y1.84%

Revenue Next 3Y3.07%

Revenue Next 5Y3.81%

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.

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4. Valuation

4.1 Price/Earnings Ratio

PAR is valuated quite expensively with a Price/Earnings ratio of 27.30.

PAR's Price/Earnings ratio is in line with the industry average.

Compared to an average S&P500 Price/Earnings ratio of 27.50, PAR is valued at the same level.

A Price/Forward Earnings ratio of 24.27 indicates a rather expensive valuation of PAR.

PAR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PAR is more expensive than 67.29% of the companies in the same industry.

PAR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.

		Industry Rank	Sector Rank
PE	27.3
Fwd PE	24.27

4.2 Price Multiples

71.96% of the companies in the same industry are cheaper than PAR, based on the Enterprise Value to EBITDA ratio.

PAR's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	29.52
EV/EBITDA	20.28

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

PAR has an outstanding profitability rating, which may justify a higher PE ratio.

PEG (NY)3.18

PEG (5Y)1.65

EPS Next 2Y8.25%

EPS Next 3Y8.28%

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5. Dividend

5.1 Amount

PAR has a yearly dividend return of 1.00%, which is pretty low.

Compared to an average industry Dividend Yield of 2.37, PAR has a dividend in line with its industry peers.

Compared to an average S&P500 Dividend Yield of 2.34, PAR's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	1%

5.2 History

On average, the dividend of PAR grows each year by 13.91%, which is quite nice.

Dividend Growth(5Y)13.91%

Div Incr Years1

Div Non Decr Years1

5.3 Sustainability

PAR pays out 24.78% of its income as dividend. This is a sustainable payout ratio.

PAR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP24.78%

EPS Next 2Y8.25%

EPS Next 3Y8.28%

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PARKER HANNIFIN CORP

FRA:PAR (7/18/2025, 7:00:00 PM)

619.8

+0.2 (+0.03%)

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupCapital Goods

GICS IndustryMachinery

Earnings (Last)05-01 2025-05-01/bmo

Earnings (Next)08-07 2025-08-07/amc

Inst Owners90.24%

Inst Owner ChangeN/A

Ins Owners0.17%

Ins Owner ChangeN/A

Market Cap79.20B

Analysts80.63

Price Target654.15 (5.54%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1%

Yearly Dividend5.22

Dividend Growth(5Y)13.91%

DP24.78%

Div Incr Years1

Div Non Decr Years1

Ex-DateN/A

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)1.02%

Min EPS beat(2)0.28%

Max EPS beat(2)1.76%

EPS beat(4)3

Avg EPS beat(4)1.44%

Min EPS beat(4)-1.98%

Max EPS beat(4)5.69%

EPS beat(8)7

Avg EPS beat(8)4.81%

EPS beat(12)11

Avg EPS beat(12)6.22%

EPS beat(16)14

Avg EPS beat(16)6.05%

Revenue beat(2)0

Avg Revenue beat(2)-3.78%

Min Revenue beat(2)-4.13%

Max Revenue beat(2)-3.42%

Revenue beat(4)0

Avg Revenue beat(4)-2.82%

Min Revenue beat(4)-4.13%

Max Revenue beat(4)-0.9%

Revenue beat(8)0

Avg Revenue beat(8)-2.69%

Revenue beat(12)4

Avg Revenue beat(12)-1.01%

Revenue beat(16)5

Avg Revenue beat(16)-1.03%

PT rev (1m)2.12%

PT rev (3m)-6.34%

EPS NQ rev (1m)0.1%

EPS NQ rev (3m)-2.59%

EPS NY rev (1m)0.27%

EPS NY rev (3m)0.15%

Revenue NQ rev (1m)0.04%

Revenue NQ rev (3m)-2.16%

Revenue NY rev (1m)0.03%

Revenue NY rev (3m)-0.66%

Valuation

		Industry Rank	Sector Rank
PE	27.3
Fwd PE	24.27
P/S	4.66
P/FCF	29.52
P/OCF	26.02
P/B	6.89
P/tB	N/A
EV/EBITDA	20.28

EPS(TTM)22.7

EY3.66%

EPS(NY)25.54

Fwd EY4.12%

FCF(TTM)20.99

FCFY3.39%

OCF(TTM)23.82

OCFY3.84%

SpS132.97

BVpS89.95

TBVpS-29.84

PEG (NY)3.18

PEG (5Y)1.65

Profitability

		Industry Rank	Sector Rank
ROA	11.73%
ROE	25.34%
ROCE	17.53%
ROIC	13.75%
ROICexc	13.99%
ROICexgc	63.29%
OM	20.63%
PM (TTM)	17.14%
GM	36.64%
FCFM	15.79%

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-Score8

Asset Turnover0.68

Health

		Industry Rank	Sector Rank
Debt/Equity	0.55
Debt/FCF	3
Debt/EBITDA	1.49
Cap/Depr	46.34%
Cap/Sales	2.13%
Interest Coverage	250
Cash Conversion	71.03%
Profit Quality	92.11%
Current Ratio	1.21
Quick Ratio	0.7
Altman-Z	5.78

F-Score8

WACC9.62%

ROIC/WACC1.43

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 Y8.59%

EPS Next 2Y8.25%

EPS Next 3Y8.28%

EPS Next 5Y6.84%

Revenue 1Y (TTM)-0.23%

Revenue growth 3Y11.58%

Revenue growth 5Y6.83%

Sales Q2Q%-2.25%

Revenue Next Year-0.48%

Revenue Next 2Y1.84%

Revenue Next 3Y3.07%

Revenue Next 5Y3.81%

EBIT growth 1Y4.72%

EBIT growth 3Y17.83%

EBIT growth 5Y13.85%

EBIT Next Year23.82%

EBIT Next 3Y12.42%

EBIT Next 5Y8.11%

FCF growth 1Y33.3%

FCF growth 3Y8.06%

FCF growth 5Y14.22%

OCF growth 1Y31.91%

OCF growth 3Y9.54%

OCF growth 5Y14.36%

PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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