PACCAR INC (PCAR) Stock Fundamental Analysis
USA - NASDAQ:PCAR - US6937181088 - Common Stock
96.92 USD
-0.54 (-0.55%)
97 USD
+0.08 (+0.08%)
We assign a fundamental rating of 5 out of 10 to PCAR. PCAR was compared to 130 industry peers in the Machinery industry. While PCAR has a great profitability rating, there are some minor concerns on its financial health. PCAR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PCAR had positive earnings in the past year.
PCAR had a positive operating cash flow in the past year.
PCAR had positive earnings in each of the past 5 years.
PCAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PCAR has a Return On Assets of 6.09%. This is in the better half of the industry: PCAR outperforms 63.08% of its industry peers.
PCAR has a better Return On Equity (13.89%) than 71.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.22%, PCAR is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PCAR is above the industry average of 10.24%.
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
With a decent Profit Margin value of 9.11%, PCAR is doing good in the industry, outperforming 67.69% of the companies in the same industry.
PCAR's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 14.59%, PCAR is doing good in the industry, outperforming 68.46% of the companies in the same industry.
In the last couple of years the Operating Margin of PCAR has grown nicely.
Looking at the Gross Margin, with a value of 20.67%, PCAR is doing worse than 71.54% of the companies in the same industry.
In the last couple of years the Gross Margin of PCAR has grown nicely.
| 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.
The number of shares outstanding for PCAR has been increased compared to 1 year ago.
Compared to 5 years ago, PCAR has more shares outstanding
Compared to 1 year ago, PCAR has a worse debt to assets ratio.
2.2 Solvency
PCAR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC1.02
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.82 indicates that PCAR should not have too much problems paying its short term obligations.
The Current ratio of PCAR (1.82) is worse than 60.77% of its industry peers.
A Quick Ratio of 1.51 indicates that PCAR should not have too much problems paying its short term obligations.
PCAR has a better Quick ratio (1.51) than 63.85% of its industry peers.
| 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.
PCAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.63% yearly.
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%-13.4%
3.2 Future
Based on estimates for the next years, PCAR will show a small growth in Earnings Per Share. The EPS will grow by 6.49% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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 18.97, the valuation of PCAR can be described as rather expensive.
Based on the Price/Earnings ratio, PCAR is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PCAR to the average of the S&P500 Index (26.03), we can say PCAR is valued slightly cheaper.
PCAR is valuated correctly with a Price/Forward Earnings ratio of 15.58.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PCAR indicates a somewhat cheap valuation: PCAR is cheaper than 73.85% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. PCAR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 15.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCAR is valued cheaper than 85.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PCAR is valued a bit cheaper than 76.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.93 | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
The decent profitability rating of PCAR may justify a higher PE ratio.
A cheap valuation may be justified as PCAR's earnings are expected to decrease with -3.68% in the coming years.
PEG (NY)N/A
PEG (5Y)6.63
EPS Next 2Y-11.31%
EPS Next 3Y-3.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, PCAR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.82, PCAR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, PCAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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
PCAR pays out 83.66% of its income as dividend. 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%
96.92
-0.54 (-0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner Change0.54%
Ins Owners1.23%
Ins Owner Change3.87%
Market Cap50.89B
Revenue(TTM)29.53B
Net Income(TTM)2.69B
Analysts70.37
Price Target109.25 (12.72%)
Short Float %2.22%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)2
Avg Revenue beat(2)3.45%
Min Revenue beat(2)2.16%
Max Revenue beat(2)4.73%
Revenue beat(4)4
Avg Revenue beat(4)2.57%
Min Revenue beat(4)1.69%
Max Revenue beat(4)4.73%
Revenue beat(8)7
Avg Revenue beat(8)2.87%
Revenue beat(12)11
Avg Revenue beat(12)4.14%
Revenue beat(16)15
Avg Revenue beat(16)5.53%
PT rev (1m)2.88%
PT rev (3m)6.27%
EPS NQ rev (1m)-17.35%
EPS NQ rev (3m)-19.27%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-10.29%
Revenue NQ rev (1m)-8.01%
Revenue NQ rev (3m)-8.01%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 15.58 | ||
| P/S | 1.72 | ||
| P/FCF | 15.93 | ||
| P/OCF | 10.79 | ||
| P/B | 2.63 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 8.18 |
EPS(TTM)5.11
EY5.27%
EPS(NY)6.22
Fwd EY6.42%
FCF(TTM)6.08
FCFY6.28%
OCF(TTM)8.98
OCFY9.27%
SpS56.24
BVpS36.89
TBVpS36.89
PEG (NY)N/A
PEG (5Y)6.63
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
WACC9.06%
ROIC/WACC1.02
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%-13.4%
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%.