PAR Fundamental Analysis - PARKER HANNIFIN CORP

Fundamental Rating

PAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Machinery industry. While PAR has a great profitability rating, there are some minor concerns on its financial health. PAR does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

In the past year PAR was profitable.

PAR had a positive operating cash flow in the past year.

PAR had positive earnings in each of the past 5 years.

PAR had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 11.97%, PAR belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.

Looking at the Return On Equity, with a value of 25.81%, PAR belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.

Looking at the Return On Invested Capital, with a value of 14.37%, PAR belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.

PAR had an Average Return On Invested Capital over the past 3 years of 13.03%. This is above the industry average of 9.17%.

The 3 year average ROIC (13.03%) for PAR is below the current ROIC(14.37%), indicating increased profibility in the last year.

		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 96.08% of its industry peers.

PAR's Profit Margin has improved in the last couple of years.

The Operating Margin of PAR (20.75%) is better than 93.14% of its industry peers.

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

PAR's Gross Margin of 36.96% is in line compared to the rest of the industry. PAR outperforms 46.08% of its industry peers.

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

The number of shares outstanding for PAR has been reduced compared to 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

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 71.57% of the companies in the same industry.

A Debt/Equity ratio of 0.55 indicates that 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 43.14% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.55
Debt/FCF	2.78
Altman-Z	N/A

ROIC/WACC1.47

WACC9.78%

2.3 Liquidity

A Current Ratio of 1.19 indicates that PAR should not have too much problems paying its short term obligations.

PAR's Current ratio of 1.19 is on the low side compared to the rest of the industry. PAR is outperformed by 69.61% of its industry peers.

PAR has a Quick Ratio of 1.19. This is a bad value and indicates that PAR is not financially healthy enough and could expect problems in meeting its short term obligations.

The Quick ratio of PAR (0.71) is worse than 77.45% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.19
Quick Ratio	0.71

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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

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.

PAR shows a decrease in Revenue. In the last year, the revenue decreased by -0.40%.

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.

Based on estimates for the next years, PAR will show a small growth in Revenue. The Revenue will grow by 5.17% on average per year.

EPS Next Y9.81%

EPS Next 2Y9.5%

EPS Next 3Y8.86%

EPS Next 5Y7.66%

Revenue Next Year4.57%

Revenue Next 2Y5.04%

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.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.58, which means the current valuation is very expensive for PAR.

The rest of the industry has a similar Price/Earnings ratio as PAR.

When comparing the Price/Earnings ratio of PAR to the average of the S&P500 Index (27.41), we can say PAR is valued inline with the index average.

Based on the Price/Forward Earnings ratio of 25.12, the valuation of PAR can be described as expensive.

PAR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PAR is more expensive than 69.61% of the companies in the same industry.

PAR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	27.58
Fwd PE	25.12

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PAR is valued a bit more expensive than the industry average as 75.49% of the companies are valued more cheaply.

PAR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. PAR is more expensive than 60.78% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	28.61
EV/EBITDA	20.62

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)2.81

PEG (5Y)1.35

EPS Next 2Y9.5%

EPS Next 3Y8.86%

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5. Dividend

5.1 Amount

With a yearly dividend of 0.95%, PAR is not a good candidate for dividend investing.

PAR's Dividend Yield is comparable with the industry average which is at 2.55.

Compared to an average S&P500 Dividend Yield of 2.38, PAR's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	0.95%

5.2 History

On average, the dividend of PAR grows each year by 13.72%, which is quite nice.

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.

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

DP24.39%

EPS Next 2Y9.5%

EPS Next 3Y8.86%

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PARKER HANNIFIN CORP

FRA:PAR (9/22/2025, 7:00:00 PM)

643

+5.2 (+0.82%)

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupCapital Goods

GICS IndustryMachinery

Earnings (Last)08-07 2025-08-07/bmo

Earnings (Next)11-06 2025-11-06/bmo

Inst Owners90.31%

Inst Owner ChangeN/A

Ins Owners0.16%

Ins Owner ChangeN/A

Market Cap81.46B

Analysts80.61

Price Target678.63 (5.54%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	0.95%

Yearly Dividend5.72

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)3.76%

PT rev (3m)6.37%

EPS NQ rev (1m)-0.03%

EPS NQ rev (3m)-3.75%

EPS NY rev (1m)0%

EPS NY rev (3m)1.15%

Revenue NQ rev (1m)0.06%

Revenue NQ rev (3m)-1.26%

Revenue NY rev (1m)0.06%

Revenue NY rev (3m)0.42%

Valuation

		Industry Rank	Sector Rank
PE	27.58
Fwd PE	25.12
P/S	4.82
P/FCF	28.61
P/OCF	25.32
P/B	6.99
P/tB	N/A
EV/EBITDA	20.62

EPS(TTM)23.31

EY3.63%

EPS(NY)25.6

Fwd EY3.98%

FCF(TTM)22.47

FCFY3.49%

OCF(TTM)25.4

OCFY3.95%

SpS133.52

BVpS92.03

TBVpS-29.5

PEG (NY)2.81

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

WACC9.78%

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 3Y8.86%

EPS Next 5Y7.66%

Revenue 1Y (TTM)-0.4%

Revenue growth 3Y7.76%

Revenue growth 5Y7.7%

Sales Q2Q%1.08%

Revenue Next Year4.57%

Revenue Next 2Y5.04%

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%

PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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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

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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