PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
FRA:PAR - Deutsche Boerse Ag - US7010941042 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to PAR. PAR was compared to 111 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PAR was profitable.
In the past year PAR had a positive cash flow from operations.
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 93.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.34%, PAR belongs to the top of the industry, outperforming 91.82% of the companies in the same industry.
The Return On Invested Capital of PAR (13.75%) is better than 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAR is above the industry average of 8.45%.
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 has a better Profit Margin (17.14%) than 95.45% of its industry peers.
PAR's Profit Margin has improved in the last couple of years.
PAR's Operating Margin of 20.63% is amongst the best of the industry. PAR outperforms 93.64% of its industry peers.
In the last couple of years the Operating Margin of PAR has grown nicely.
PAR has a Gross Margin (36.64%) 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 | 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%
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.
PAR has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for PAR has been increased compared to 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 5.49. This indicates that PAR is financially healthy and has little risk of bankruptcy at the moment.
PAR has a Altman-Z score of 5.49. This is amongst the best in the industry. PAR outperforms 96.36% of its industry peers.
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 74.55% 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 43.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3 | ||
| Altman-Z | 5.49 |
ROIC/WACC1.42
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.21 indicates that PAR should not have too much problems paying its short term obligations.
The Current ratio of PAR (1.21) is worse than 74.55% of its industry peers.
PAR has a Quick Ratio of 1.21. This is a bad value and indicates that PAR is not financially healthy enough and could expect problems in meeting its short term obligations.
PAR's Quick ratio of 0.70 is on the low side compared to the rest of the industry. PAR is outperformed by 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 |
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%.
PAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.83% yearly.
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
Based on estimates for the next years, PAR will show a small growth in Earnings Per Share. The EPS will grow by 7.49% on average per year.
The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y8.25%
EPS Next 2Y8.18%
EPS Next 3Y8.39%
EPS Next 5Y7.49%
Revenue Next Year-0.52%
Revenue Next 2Y1.82%
Revenue Next 3Y3.13%
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.
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 25.06.
The rest of the industry has a similar Price/Earnings ratio as PAR.
PAR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.25.
A Price/Forward Earnings ratio of 22.30 indicates a rather expensive valuation of PAR.
Based on the Price/Forward Earnings ratio, PAR is valued a bit more expensive than 61.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PAR to the average of the S&P500 Index (22.15), we can say PAR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 22.3 |
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 71.82% of the companies in the same industry.
PAR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.09 | ||
| EV/EBITDA | 18.76 |
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)3.04
PEG (5Y)1.52
EPS Next 2Y8.18%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
PAR has a Yearly Dividend Yield of 1.08%.
PAR's Dividend Yield is comparable with the industry average which is at 3.21.
With a Dividend Yield of 1.08, PAR pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of PAR is nicely growing with an annual growth rate of 13.91%!
Dividend Growth(5Y)13.91%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
24.78% 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.
DP24.78%
EPS Next 2Y8.18%
EPS Next 3Y8.39%
FRA:PAR (5/30/2025, 7:00:00 PM)
584.4
-0.8 (-0.14%)
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 Cap74.67B
Analysts81.29
Price Target641.8 (9.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend5.37
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)3.64%
PT rev (3m)-9.95%
EPS NQ rev (1m)-2.65%
EPS NQ rev (3m)-2.87%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-2.2%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 22.3 | ||
| P/S | 4.28 | ||
| P/FCF | 27.09 | ||
| P/OCF | 23.88 | ||
| P/B | 6.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.76 |
EPS(TTM)23.32
EY3.99%
EPS(NY)26.2
Fwd EY4.48%
FCF(TTM)21.57
FCFY3.69%
OCF(TTM)24.47
OCFY4.19%
SpS136.61
BVpS92.42
TBVpS-30.65
PEG (NY)3.04
PEG (5Y)1.52
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 | 5.49 |
F-Score8
WACC9.65%
ROIC/WACC1.42
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 Y8.25%
EPS Next 2Y8.18%
EPS Next 3Y8.39%
EPS Next 5Y7.49%
Revenue 1Y (TTM)-0.23%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-2.25%
Revenue Next Year-0.52%
Revenue Next 2Y1.82%
Revenue Next 3Y3.13%
Revenue Next 5Y4.01%
EBIT growth 1Y4.72%
EBIT growth 3Y17.83%
EBIT growth 5Y13.85%
EBIT Next Year23.82%
EBIT Next 3Y12.42%
EBIT Next 5Y8.69%
FCF growth 1Y33.3%
FCF growth 3Y8.06%
FCF growth 5Y14.22%
OCF growth 1Y31.91%
OCF growth 3Y9.54%
OCF growth 5Y14.36%