PACCAR INC (PCAR) Stock Fundamental Analysis
USA - NASDAQ:PCAR - US6937181088 - Common Stock
99.17 USD
-1.91 (-1.89%)
99.17 USD
0 (0%)
Overall PCAR gets a fundamental rating of 5 out of 10. We evaluated PCAR against 130 industry peers in the Machinery industry. PCAR scores excellent on profitability, but there are some minor concerns on its financial health. PCAR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PCAR had positive earnings in the past year.
In the past year PCAR had a positive cash flow from operations.
Each year in the past 5 years PCAR has been profitable.
Each year in the past 5 years PCAR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.09%, PCAR is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
PCAR has a Return On Equity of 13.89%. This is in the better half of the industry: PCAR outperforms 72.31% of its industry peers.
PCAR's Return On Invested Capital of 9.22% is fine compared to the rest of the industry. PCAR outperforms 65.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PCAR is above the industry average of 10.00%.
The last Return On Invested Capital (9.22%) for PCAR is well below the 3 year average (13.42%), which needs to be investigated, but indicates that PCAR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 13.89% | ||
| ROIC | 9.22% |
ROA(3y)9.97%
ROA(5y)8.16%
ROE(3y)25.21%
ROE(5y)20.84%
ROIC(3y)13.42%
ROIC(5y)10.79%
1.3 Margins
PCAR has a Profit Margin of 9.11%. This is in the better half of the industry: PCAR outperforms 68.46% of its industry peers.
PCAR's Profit Margin has improved in the last couple of years.
PCAR has a better Operating Margin (14.59%) than 69.23% of its industry peers.
PCAR's Operating Margin has improved in the last couple of years.
PCAR has a worse Gross Margin (20.67%) than 71.54% of its industry peers.
PCAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.59% | ||
| PM (TTM) | 9.11% | ||
| GM | 20.67% |
OM growth 3Y16.77%
OM growth 5Y5.85%
PM growth 3Y15.94%
PM growth 5Y5.8%
GM growth 3Y6.2%
GM growth 5Y2.74%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PCAR is creating some value.
Compared to 1 year ago, PCAR has more shares outstanding
PCAR has more shares outstanding than it did 5 years ago.
PCAR has a worse debt/assets ratio than last year.
2.2 Solvency
There is no outstanding debt for PCAR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC1.03
WACC8.98%
2.3 Liquidity
PCAR has a Current Ratio of 1.82. This is a normal value and indicates that PCAR is financially healthy and should not expect problems in meeting its short term obligations.
PCAR has a Current ratio of 1.82. This is in the lower half of the industry: PCAR underperforms 60.77% of its industry peers.
PCAR has a Quick Ratio of 1.51. This is a normal value and indicates that PCAR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.51, PCAR is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
PCAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.91%.
Measured over the past 5 years, PCAR shows a small growth in Earnings Per Share. The EPS has been growing by 2.86% on average per year.
Looking at the last year, PCAR shows a very negative growth in Revenue. The Revenue has decreased by -15.22% in the last year.
The Revenue has been growing slightly by 5.63% on average over the past years.
EPS 1Y (TTM)-42.91%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-39.46%
Revenue 1Y (TTM)-15.22%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-20.73%
3.2 Future
The Earnings Per Share is expected to grow by 6.49% on average over the next years.
PCAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.52% yearly.
EPS Next Y-34.2%
EPS Next 2Y-11.31%
EPS Next 3Y-3.68%
EPS Next 5Y6.49%
Revenue Next Year-15.5%
Revenue Next 2Y-5.92%
Revenue Next 3Y-1.11%
Revenue Next 5Y1.52%
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 accelerating.
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
Based on the Price/Earnings ratio of 19.41, the valuation of PCAR can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PCAR indicates a somewhat cheap valuation: PCAR is cheaper than 67.69% of the companies listed in the same industry.
PCAR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.83.
Based on the Price/Forward Earnings ratio of 15.94, the valuation of PCAR can be described as correct.
70.00% of the companies in the same industry are more expensive than PCAR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PCAR to the average of the S&P500 Index (22.88), we can say PCAR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 15.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCAR is valued cheaper than 86.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PCAR is valued a bit cheaper than the industry average as 77.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.3 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
PCAR has a very decent profitability rating, which may justify a higher PE ratio.
PCAR's earnings are expected to decrease with -3.68% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.79
EPS Next 2Y-11.31%
EPS Next 3Y-3.68%
5. Dividend
5.1 Amount
PCAR has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.78, PCAR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.32, PCAR pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
On average, the dividend of PCAR grows each year by 14.79%, which is quite nice.
PCAR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
83.66% of the earnings are spent on dividend by PCAR. This is not a sustainable payout ratio.
PCAR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP83.66%
EPS Next 2Y-11.31%
EPS Next 3Y-3.68%
99.17
-1.91 (-1.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner Change0.76%
Ins Owners1.23%
Ins Owner Change3.87%
Market Cap52.07B
Revenue(TTM)29.53B
Net Income(TTM)2.69B
Analysts70.37
Price Target106.19 (7.08%)
Short Float %2.22%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend4.37
Dividend Growth(5Y)14.79%
DP83.66%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.9%
Min EPS beat(2)-5.82%
Max EPS beat(2)4.02%
EPS beat(4)1
Avg EPS beat(4)-11.55%
Min EPS beat(4)-40.48%
Max EPS beat(4)4.02%
EPS beat(8)3
Avg EPS beat(8)-3.58%
EPS beat(12)7
Avg EPS beat(12)1.94%
EPS beat(16)11
Avg EPS beat(16)3.94%
Revenue beat(2)1
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-6.08%
Max Revenue beat(2)4.73%
Revenue beat(4)3
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-6.08%
Max Revenue beat(4)4.73%
Revenue beat(8)6
Avg Revenue beat(8)1.84%
Revenue beat(12)10
Avg Revenue beat(12)3.46%
Revenue beat(16)14
Avg Revenue beat(16)5.01%
PT rev (1m)0%
PT rev (3m)3.29%
EPS NQ rev (1m)-3.16%
EPS NQ rev (3m)-7.55%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-10.29%
Revenue NQ rev (1m)-2.1%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 15.94 | ||
| P/S | 1.76 | ||
| P/FCF | 16.3 | ||
| P/OCF | 11.04 | ||
| P/B | 2.69 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)5.11
EY5.15%
EPS(NY)6.22
Fwd EY6.27%
FCF(TTM)6.08
FCFY6.13%
OCF(TTM)8.98
OCFY9.06%
SpS56.24
BVpS36.89
TBVpS36.89
PEG (NY)N/A
PEG (5Y)6.79
Graham Number65.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 13.89% | ||
| ROCE | 11.7% | ||
| ROIC | 9.22% | ||
| ROICexc | 12.23% | ||
| ROICexgc | 234.79% | ||
| OM | 14.59% | ||
| PM (TTM) | 9.11% | ||
| GM | 20.67% | ||
| FCFM | 10.82% |
ROA(3y)9.97%
ROA(5y)8.16%
ROE(3y)25.21%
ROE(5y)20.84%
ROIC(3y)13.42%
ROIC(5y)10.79%
ROICexc(3y)18.27%
ROICexc(5y)14.41%
ROICexgc(3y)21.43%
ROICexgc(5y)16.79%
ROCE(3y)20.03%
ROCE(5y)15.72%
ROICexgc growth 3Y25.83%
ROICexgc growth 5Y8.05%
ROICexc growth 3Y23.77%
ROICexc growth 5Y6.45%
OM growth 3Y16.77%
OM growth 5Y5.85%
PM growth 3Y15.94%
PM growth 5Y5.8%
GM growth 3Y6.2%
GM growth 5Y2.74%
F-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 181.03% | ||
| Cap/Sales | 5.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.59% | ||
| Profit Quality | 118.7% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | N/A |
F-Score5
WACC8.98%
ROIC/WACC1.03
Cap/Depr(3y)167.67%
Cap/Depr(5y)167.99%
Cap/Sales(3y)4.53%
Cap/Sales(5y)5.86%
Profit Quality(3y)62.51%
Profit Quality(5y)64.23%
High Growth Momentum
Growth
EPS 1Y (TTM)-42.91%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-39.46%
EPS Next Y-34.2%
EPS Next 2Y-11.31%
EPS Next 3Y-3.68%
EPS Next 5Y6.49%
Revenue 1Y (TTM)-15.22%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-20.73%
Revenue Next Year-15.5%
Revenue Next 2Y-5.92%
Revenue Next 3Y-1.11%
Revenue Next 5Y1.52%
EBIT growth 1Y-35.47%
EBIT growth 3Y31.59%
EBIT growth 5Y11.81%
EBIT Next Year-14.57%
EBIT Next 3Y1.4%
EBIT Next 5Y6.88%
FCF growth 1Y4.92%
FCF growth 3Y73.55%
FCF growth 5Y26.62%
OCF growth 1Y10.94%
OCF growth 3Y28.51%
OCF growth 5Y10.16%
PACCAR INC / PCAR FAQ
Can you provide the ChartMill fundamental rating for PACCAR INC?
ChartMill assigns a fundamental rating of 5 / 10 to PCAR.
Can you provide the valuation status for PACCAR INC?
ChartMill assigns a valuation rating of 5 / 10 to PACCAR INC (PCAR). This can be considered as Fairly Valued.
What is the profitability of PCAR stock?
PACCAR INC (PCAR) has a profitability rating of 7 / 10.
What is the earnings growth outlook for PACCAR INC?
The Earnings per Share (EPS) of PACCAR INC (PCAR) is expected to decline by -34.2% in the next year.
Can you provide the dividend sustainability for PCAR stock?
The dividend rating of PACCAR INC (PCAR) is 4 / 10 and the dividend payout ratio is 83.66%.