PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
FRA:PAR - US7010941042 - Common Stock
649.8 EUR
-10.2 (-1.55%)
Taking everything into account, PAR scores 5 out of 10 in our fundamental rating. PAR was compared to 105 industry peers in the Machinery industry. While PAR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PAR has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
PAR had positive earnings in the past year.
In the past year PAR had a positive cash flow from operations.
PAR had positive earnings in each of the past 5 years.
In the past 5 years PAR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PAR (11.97%) is better than 93.33% of its industry peers.
PAR has a better Return On Equity (25.81%) than 91.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.37%, PAR belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PAR is above the industry average of 8.67%.
The last Return On Invested Capital (14.37%) for PAR is above the 3 year average (13.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROIC | 14.37% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)13.03%
ROIC(5y)12.34%
1.3 Margins
PAR's Profit Margin of 17.79% is amongst the best of the industry. PAR outperforms 96.19% of its industry peers.
PAR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.75%, PAR belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
PAR's Operating Margin has improved in the last couple of years.
PAR has a Gross Margin (36.96%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.75% | ||
| PM (TTM) | 17.79% | ||
| GM | 36.96% |
OM growth 3Y4.16%
OM growth 5Y9.38%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.21%
GM growth 5Y7.79%
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.
The number of shares outstanding for PAR has been reduced compared to 1 year ago.
Compared to 5 years ago, PAR has less shares outstanding
Compared to 1 year ago, PAR has an improved debt to assets ratio.
2.2 Solvency
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 74.29% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that PAR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, PAR is not doing good in the industry: 60.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.47
WACC9.76%
2.3 Liquidity
A Current Ratio of 1.19 indicates that PAR should not have too much problems paying its short term obligations.
PAR has a worse Current ratio (1.19) than 75.24% of its industry peers.
A Quick Ratio of 0.71 indicates that PAR may have some problems paying its short term obligations.
PAR has a Quick ratio of 0.71. This is amonst the worse of the industry: PAR underperforms 81.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
PAR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.76%.
PAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.50% yearly.
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
Based on estimates for the next years, PAR will show a small growth in Earnings Per Share. The EPS will grow by 7.66% on average per year.
PAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.17% yearly.
EPS Next Y9.81%
EPS Next 2Y9.5%
EPS Next 3Y9.01%
EPS Next 5Y7.66%
Revenue Next Year4.51%
Revenue Next 2Y4.98%
Revenue Next 3Y5.06%
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
PAR is valuated quite expensively with a Price/Earnings ratio of 27.69.
Compared to the rest of the industry, the Price/Earnings ratio of PAR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.13. PAR is around the same levels.
With a Price/Forward Earnings ratio of 25.21, PAR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PAR is valued a bit more expensive than 63.81% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, PAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.69 | ||
| Fwd PE | 25.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAR is valued a bit more expensive than the industry average as 74.29% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.72 | ||
| EV/EBITDA | 20.85 |
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)1.35
EPS Next 2Y9.5%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, PAR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.87, PAR has a dividend in line with its industry peers.
With a Dividend Yield of 0.94, PAR pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of PAR is nicely growing with an annual growth rate of 13.72%!
Dividend Growth(5Y)13.72%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
24.39% of the earnings are spent on dividend by PAR. This is a low number and sustainable payout ratio.
The dividend of PAR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.39%
EPS Next 2Y9.5%
EPS Next 3Y9.01%
FRA:PAR (8/29/2025, 7:00:00 PM)
649.8
-10.2 (-1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.31%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap82.32B
Analysts80.63
Price Target683.56 (5.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend5.76
Dividend Growth(5Y)13.72%
DP24.39%
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)4.5%
PT rev (3m)6.51%
EPS NQ rev (1m)-4.04%
EPS NQ rev (3m)-5.13%
EPS NY rev (1m)0.98%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.69 | ||
| Fwd PE | 25.21 | ||
| P/S | 4.83 | ||
| P/FCF | 28.72 | ||
| P/OCF | 25.41 | ||
| P/B | 7.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.85 |
EPS(TTM)23.47
EY3.61%
EPS(NY)25.77
Fwd EY3.97%
FCF(TTM)22.62
FCFY3.48%
OCF(TTM)25.57
OCFY3.93%
SpS134.41
BVpS92.64
TBVpS-29.7
PEG (NY)2.82
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROCE | 17.4% | ||
| ROIC | 14.37% | ||
| ROICexc | 14.65% | ||
| ROICexgc | 66.17% | ||
| OM | 20.75% | ||
| PM (TTM) | 17.79% | ||
| GM | 36.96% | ||
| FCFM | 16.83% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)13.03%
ROIC(5y)12.34%
ROICexc(3y)13.28%
ROICexc(5y)12.66%
ROICexgc(3y)62.44%
ROICexgc(5y)50.33%
ROCE(3y)16.68%
ROCE(5y)15.67%
ROICexcg growth 3Y40.44%
ROICexcg growth 5Y12.95%
ROICexc growth 3Y8.47%
ROICexc growth 5Y9.14%
OM growth 3Y4.16%
OM growth 5Y9.38%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.21%
GM growth 5Y7.79%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.13% | ||
| Profit Quality | 94.62% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | N/A |
F-Score7
WACC9.76%
ROIC/WACC1.47
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 Y9.81%
EPS Next 2Y9.5%
EPS Next 3Y9.01%
EPS Next 5Y7.66%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
Revenue Next Year4.51%
Revenue Next 2Y4.98%
Revenue Next 3Y5.06%
Revenue Next 5Y5.17%
EBIT growth 1Y4.13%
EBIT growth 3Y12.25%
EBIT growth 5Y17.81%
EBIT Next Year18.88%
EBIT Next 3Y10.13%
EBIT Next 5Y8.67%
FCF growth 1Y11.96%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y11.57%
OCF growth 3Y15.64%
OCF growth 5Y12.77%