PARKER HANNIFIN CORP (PAR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PAR - US7010941042 - Common Stock
749.8 EUR
-3.4 (-0.45%)
Overall PAR gets a fundamental rating of 5 out of 10. We evaluated PAR against 110 industry peers in the Machinery industry. PAR has an excellent profitability rating, but there are some minor concerns on its financial health. PAR is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years PAR has always been profitable.
PAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PAR has a Return On Assets of 11.87%. This is amongst the best in the industry. PAR outperforms 92.73% of its industry peers.
The Return On Equity of PAR (26.43%) is better than 92.73% of its industry peers.
The Return On Invested Capital of PAR (14.75%) is better than 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAR is above the industry average of 8.83%.
The 3 year average ROIC (12.83%) for PAR is below the current ROIC(14.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROIC | 14.75% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
1.3 Margins
PAR has a Profit Margin of 18.18%. This is amongst the best in the industry. PAR outperforms 97.27% of its industry peers.
In the last couple of years the Profit Margin of PAR has grown nicely.
The Operating Margin of PAR (21.31%) is better than 94.55% of its industry peers.
In the last couple of years the Operating Margin of PAR has grown nicely.
PAR has a Gross Margin of 37.20%. This is comparable to the rest of the industry: PAR outperforms 44.55% of its industry peers.
In the last couple of years the Gross Margin of PAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% |
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
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.
Compared to 1 year ago, PAR has less shares outstanding
PAR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PAR has an improved debt to assets ratio.
2.2 Solvency
PAR has an Altman-Z score of 6.11. This indicates that PAR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PAR (6.11) is better than 94.55% of its industry peers.
PAR has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as PAR would need 3.05 years to pay back of all of its debts.
The Debt to FCF ratio of PAR (3.05) is better than 70.91% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that PAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, PAR is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.11 |
ROIC/WACC1.59
WACC9.28%
2.3 Liquidity
PAR has a Current Ratio of 1.07. 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 1.07, PAR is doing worse than 78.18% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that PAR may have some problems paying its short term obligations.
PAR has a worse Quick ratio (0.61) than 84.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
PAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.73%, which is quite good.
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 small growth in Revenue. In the last year, the Revenue has grown by 0.22%.
Measured over the past years, PAR shows a small growth in Revenue. The Revenue has been growing by 7.70% on average per year.
EPS 1Y (TTM)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
3.2 Future
The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y14%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
EPS Next 5Y9.19%
Revenue Next Year6.84%
Revenue Next 2Y6.84%
Revenue Next 3Y6.43%
Revenue Next 5Y5.48%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.14, which means the current valuation is very expensive for PAR.
PAR's Price/Earnings ratio is in line with the industry average.
PAR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.92, the valuation of PAR can be described as expensive.
Based on the Price/Forward Earnings ratio, PAR is valued a bit more expensive than the industry average as 69.09% of the companies are valued more cheaply.
PAR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.14 | ||
| Fwd PE | 25.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAR is valued more expensive than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PAR is valued a bit more expensive than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.94 | ||
| EV/EBITDA | 23.44 |
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)2.22
PEG (5Y)1.52
EPS Next 2Y11.64%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, PAR is not a good candidate for dividend investing.
PAR's Dividend Yield is comparable with the industry average which is at 1.55.
With a Dividend Yield of 0.83, PAR pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of PAR is nicely growing with an annual growth rate of 13.82%!
Dividend Growth(5Y)13.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
24.15% 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.
DP24.15%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
FRA:PAR (12/23/2025, 7:00:00 PM)
749.8
-3.4 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.92%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap94.62B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.63
Price Target794.58 (5.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend5.76
Dividend Growth(5Y)13.82%
DP24.15%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.44%
Min EPS beat(2)5.1%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)3.23%
Min EPS beat(4)0.28%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)4.1%
EPS beat(12)11
Avg EPS beat(12)5.66%
EPS beat(16)15
Avg EPS beat(16)6.07%
Revenue beat(2)0
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)2
Avg Revenue beat(12)-1.4%
Revenue beat(16)4
Avg Revenue beat(16)-0.95%
PT rev (1m)14.14%
PT rev (3m)17.09%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)4.67%
EPS NY rev (1m)3.68%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)1.83%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.14 | ||
| Fwd PE | 25.92 | ||
| P/S | 5.57 | ||
| P/FCF | 32.94 | ||
| P/OCF | 29.24 | ||
| P/B | 8.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.44 |
EPS(TTM)24.08
EY3.21%
EPS(NY)28.93
Fwd EY3.86%
FCF(TTM)22.76
FCFY3.04%
OCF(TTM)25.64
OCFY3.42%
SpS134.66
BVpS92.62
TBVpS-34.45
PEG (NY)2.22
PEG (5Y)1.52
Graham Number224.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROCE | 17.86% | ||
| ROIC | 14.75% | ||
| ROICexc | 15.05% | ||
| ROICexgc | 77.92% | ||
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% | ||
| FCFM | 16.9% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
ROICexc(3y)13.07%
ROICexc(5y)12.53%
ROICexgc(3y)57.33%
ROICexgc(5y)47.27%
ROCE(3y)16.85%
ROCE(5y)15.77%
ROICexgc growth 3Y28.45%
ROICexgc growth 5Y7.06%
ROICexc growth 3Y6.87%
ROICexc growth 5Y8.17%
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
F-Score7
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 47.11% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.64% | ||
| Profit Quality | 92.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 6.11 |
F-Score7
WACC9.28%
ROIC/WACC1.59
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)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
EPS Next Y14%
EPS Next 2Y11.64%
EPS Next 3Y10.79%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year6.84%
Revenue Next 2Y6.84%
Revenue Next 3Y6.43%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year24.47%
EBIT Next 3Y13.18%
EBIT Next 5Y8.49%
FCF growth 1Y21.88%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y20.22%
OCF growth 3Y15.64%
OCF growth 5Y12.77%
PARKER HANNIFIN CORP / PAR.DE FAQ
What is the fundamental rating for PAR stock?
ChartMill assigns a fundamental rating of 5 / 10 to PAR.DE.
What is the valuation status of PARKER HANNIFIN CORP (PAR.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to PARKER HANNIFIN CORP (PAR.DE). This can be considered as Overvalued.
How profitable is PARKER HANNIFIN CORP (PAR.DE) stock?
PARKER HANNIFIN CORP (PAR.DE) has a profitability rating of 9 / 10.
Can you provide the financial health for PAR stock?
The financial health rating of PARKER HANNIFIN CORP (PAR.DE) is 5 / 10.
Can you provide the expected EPS growth for PAR stock?
The Earnings per Share (EPS) of PARKER HANNIFIN CORP (PAR.DE) is expected to grow by 14% in the next year.