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 106 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 does not seem to be growing, but still is valued expensively.
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.
PAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PAR (11.17%) is better than 91.51% of its industry peers.
Looking at the Return On Equity, with a value of 24.08%, PAR belongs to the top of the industry, outperforming 89.62% of the companies in the same industry.
PAR has a Return On Invested Capital of 14.21%. This is amongst the best in the industry. PAR outperforms 90.57% of its industry peers.
PAR had an Average Return On Invested Capital over the past 3 years of 11.38%. This is above the industry average of 8.60%.
The last Return On Invested Capital (14.21%) for PAR is above the 3 year average (11.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 24.08% | ||
| ROIC | 14.21% |
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
The Profit Margin of PAR (15.87%) is better than 92.45% of its industry peers.
PAR's Profit Margin has improved in the last couple of years.
PAR's Operating Margin of 20.28% is amongst the best of the industry. PAR outperforms 93.40% of its industry peers.
In the last couple of years the Operating Margin of PAR has grown nicely.
With a Gross Margin value of 36.24%, PAR perfoms like the industry average, outperforming 44.34% of the companies in the same industry.
In the last couple of years the Gross Margin of PAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.28% | ||
| PM (TTM) | 15.87% | ||
| GM | 36.24% |
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
PAR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PAR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PAR has more shares outstanding
Compared to 1 year ago, PAR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.25 indicates that PAR is not in any danger for bankruptcy at the moment.
PAR has a better Altman-Z score (5.25) than 96.23% of its industry peers.
The Debt to FCF ratio of PAR is 2.74, which is a good value as it means it would take PAR, 2.74 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.74, PAR is doing good in the industry, outperforming 74.53% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that PAR is somewhat dependend on debt financing.
PAR has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: PAR outperforms 43.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 5.25 |
ROIC/WACC1.47
WACC9.7%
2.3 Liquidity
PAR has a Current Ratio of 1.06. This is a normal value and indicates that PAR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.06, PAR is doing worse than 78.30% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that PAR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.59, PAR is doing worse than 84.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
PAR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.84%.
PAR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.50% yearly.
The Revenue has been growing slightly by 0.41% in the past year.
PAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.83% yearly.
EPS 1Y (TTM)7.84%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%6.18%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-1.63%
3.2 Future
The Earnings Per Share is expected to grow by 7.49% on average over the next years.
Based on estimates for the next years, PAR will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
EPS Next Y8.43%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
EPS Next 5Y7.49%
Revenue Next Year0.16%
Revenue Next 2Y2.32%
Revenue Next 3Y3.4%
Revenue Next 5Y4.01%
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
Based on the Price/Earnings ratio of 23.04, the valuation of PAR can be described as rather expensive.
PAR's Price/Earnings is on the same level as the industry average.
PAR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 20.06, PAR is valued on the expensive side.
PAR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, PAR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAR is valued a bit more expensive than 70.75% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PAR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.4 | ||
| EV/EBITDA | 17.33 |
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)2.73
PEG (5Y)1.4
EPS Next 2Y8.49%
EPS Next 3Y8.5%
5. Dividend
5.1 Amount
PAR has a Yearly Dividend Yield of 1.09%.
In the last 3 months the price of PAR has falen by -23.47%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.07, PAR has a dividend in line with its industry peers.
With a Dividend Yield of 1.09, PAR pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
25.99% 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.
DP25.99%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
FRA:PAR (4/30/2025, 7:00:00 PM)
527
+2.6 (+0.5%)
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 Cap67.86B
Analysts82.58
Price Target619.24 (17.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend5.36
Dividend Growth(5Y)13.91%
DP25.99%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.11%
Min EPS beat(2)-1.98%
Max EPS beat(2)1.76%
EPS beat(4)3
Avg EPS beat(4)2.06%
Min EPS beat(4)-1.98%
Max EPS beat(4)5.69%
EPS beat(8)7
Avg EPS beat(8)6.64%
EPS beat(12)11
Avg EPS beat(12)6.27%
EPS beat(16)14
Avg EPS beat(16)6.37%
Revenue beat(2)0
Avg Revenue beat(2)-3.47%
Min Revenue beat(2)-4.13%
Max Revenue beat(2)-2.81%
Revenue beat(4)0
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.9%
Revenue beat(8)1
Avg Revenue beat(8)-1.87%
Revenue beat(12)4
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)-0.97%
PT rev (1m)-15.55%
PT rev (3m)-14.36%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-3.63%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 20.06 | ||
| P/S | 3.88 | ||
| P/FCF | 23.4 | ||
| P/OCF | 20.8 | ||
| P/B | 5.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.33 |
EPS(TTM)22.87
EY4.34%
EPS(NY)26.28
Fwd EY4.99%
FCF(TTM)22.53
FCFY4.27%
OCF(TTM)25.34
OCFY4.81%
SpS135.95
BVpS89.58
TBVpS-31.98
PEG (NY)2.73
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 24.08% | ||
| ROCE | 18.12% | ||
| ROIC | 14.21% | ||
| ROICexc | 14.47% | ||
| ROICexgc | 77.49% | ||
| OM | 20.28% | ||
| PM (TTM) | 15.87% | ||
| GM | 36.24% | ||
| FCFM | 16.57% |
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-Score9
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 45.14% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.96% | ||
| Profit Quality | 104.44% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 5.25 |
F-Score9
WACC9.7%
ROIC/WACC1.47
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)7.84%
EPS 3Y19.18%
EPS 5Y16.5%
EPS Q2Q%6.18%
EPS Next Y8.43%
EPS Next 2Y8.49%
EPS Next 3Y8.5%
EPS Next 5Y7.49%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y11.58%
Revenue growth 5Y6.83%
Sales Q2Q%-1.63%
Revenue Next Year0.16%
Revenue Next 2Y2.32%
Revenue Next 3Y3.4%
Revenue Next 5Y4.01%
EBIT growth 1Y6.84%
EBIT growth 3Y17.83%
EBIT growth 5Y13.85%
EBIT Next Year23.54%
EBIT Next 3Y12.84%
EBIT Next 5Y8.69%
FCF growth 1Y49.78%
FCF growth 3Y8.06%
FCF growth 5Y14.22%
OCF growth 1Y47.71%
OCF growth 3Y9.54%
OCF growth 5Y14.36%