PACCAR INC (PCAR) Stock Fundamental Analysis
NASDAQ:PCAR - Nasdaq - US6937181088 - Common Stock - Currency: USD
PCAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. While PCAR has a great profitability rating, there are quite some 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
In the past year PCAR was profitable.
PCAR had a positive operating cash flow in the past year.
PCAR had positive earnings in each of the past 5 years.
Each year in the past 5 years PCAR had a positive operating cash flow.
1.2 Ratios
PCAR's Return On Assets of 8.13% is fine compared to the rest of the industry. PCAR outperforms 72.66% of its industry peers.
With an excellent Return On Equity value of 19.26%, PCAR belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
PCAR's Return On Invested Capital of 11.00% is fine compared to the rest of the industry. PCAR outperforms 72.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PCAR is above the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 19.26% | ||
| ROIC | 11% |
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
The Profit Margin of PCAR (10.73%) is better than 73.44% of its industry peers.
In the last couple of years the Profit Margin of PCAR has grown nicely.
PCAR's Operating Margin of 15.75% is fine compared to the rest of the industry. PCAR outperforms 75.78% of its industry peers.
In the last couple of years the Operating Margin of PCAR has grown nicely.
PCAR's Gross Margin of 21.86% is on the low side compared to the rest of the industry. PCAR is outperformed by 70.31% of its industry peers.
PCAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.75% | ||
| PM (TTM) | 10.73% | ||
| GM | 21.86% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PCAR is still creating some value.
PCAR has more shares outstanding than it did 1 year ago.
PCAR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PCAR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.12 indicates that PCAR is not in any danger for bankruptcy at the moment.
PCAR has a Altman-Z score of 3.12. This is comparable to the rest of the industry: PCAR outperforms 50.78% of its industry peers.
PCAR has a debt to FCF ratio of 6.63. This is a slightly negative value and a sign of low solvency as PCAR would need 6.63 years to pay back of all of its debts.
PCAR has a Debt to FCF ratio (6.63) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.87 indicates that PCAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, PCAR is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.63 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.16
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.62 indicates that PCAR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.62, PCAR is doing worse than 68.75% of the companies in the same industry.
PCAR has a Quick Ratio of 1.24. 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 Quick ratio (1.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
PCAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.54%.
PCAR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.86% yearly.
The Revenue has decreased by -8.58% in the past year.
Measured over the past years, PCAR shows a small growth in Revenue. The Revenue has been growing by 5.63% on average per year.
EPS 1Y (TTM)-31.54%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-57.71%
Revenue 1Y (TTM)-8.58%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-14.9%
3.2 Future
The Earnings Per Share is expected to grow by 3.96% 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 1.99% yearly.
EPS Next Y-25.54%
EPS Next 2Y-5.07%
EPS Next 3Y-3.19%
EPS Next 5Y3.96%
Revenue Next Year-12.69%
Revenue Next 2Y-2.63%
Revenue Next 3Y-0.66%
Revenue Next 5Y1.99%
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.
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
With a Price/Earnings ratio of 15.05, PCAR is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of PCAR indicates a rather cheap valuation: PCAR is cheaper than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, PCAR is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.94 indicates a correct valuation of PCAR.
Based on the Price/Forward Earnings ratio, PCAR is valued a bit cheaper than 76.56% of the companies in the same industry.
PCAR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
76.56% of the companies in the same industry are more expensive than PCAR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PCAR is valued a bit cheaper than the industry average as 60.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.07 | ||
| EV/EBITDA | 9.98 |
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 -3.19% in the coming years.
PEG (NY)N/A
PEG (5Y)5.26
EPS Next 2Y-5.07%
EPS Next 3Y-3.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, PCAR has a reasonable but not impressive dividend return.
PCAR's Dividend Yield is a higher than the industry average which is at 1.88.
With a Dividend Yield of 1.39, PCAR pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
On average, the dividend of PCAR grows each year by 14.79%, which is quite nice.
PCAR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)14.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PCAR pays out 63.91% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PCAR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP63.91%
EPS Next 2Y-5.07%
EPS Next 3Y-3.19%
99.34
+1.14 (+1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.87%
Inst Owner Change2.16%
Ins Owners1.24%
Ins Owner Change4.7%
Market Cap52.15B
Analysts66.67
Price Target102.6 (3.28%)
Short Float %2.34%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend4.37
Dividend Growth(5Y)14.79%
DP63.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.2%
Min EPS beat(2)-40.48%
Max EPS beat(2)-3.92%
EPS beat(4)0
Avg EPS beat(4)-11.75%
Min EPS beat(4)-40.48%
Max EPS beat(4)-0.31%
EPS beat(8)4
Avg EPS beat(8)-1.75%
EPS beat(12)8
Avg EPS beat(12)3.83%
EPS beat(16)10
Avg EPS beat(16)3.26%
Revenue beat(2)2
Avg Revenue beat(2)1.7%
Min Revenue beat(2)1.69%
Max Revenue beat(2)1.7%
Revenue beat(4)3
Avg Revenue beat(4)1.35%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)3.26%
Revenue beat(8)7
Avg Revenue beat(8)2.88%
Revenue beat(12)11
Avg Revenue beat(12)4.59%
Revenue beat(16)15
Avg Revenue beat(16)5.73%
PT rev (1m)-1.51%
PT rev (3m)-12.12%
EPS NQ rev (1m)-1.99%
EPS NQ rev (3m)-24.65%
EPS NY rev (1m)-1.07%
EPS NY rev (3m)-22.33%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-10.34%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-10.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 13.94 | ||
| P/S | 1.61 | ||
| P/FCF | 22.07 | ||
| P/OCF | 12.77 | ||
| P/B | 2.89 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)6.6
EY6.64%
EPS(NY)7.13
Fwd EY7.18%
FCF(TTM)4.5
FCFY4.53%
OCF(TTM)7.78
OCFY7.83%
SpS61.65
BVpS34.33
TBVpS34.33
PEG (NY)N/A
PEG (5Y)5.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 19.26% | ||
| ROCE | 13.97% | ||
| ROIC | 11% | ||
| ROICexc | 14.14% | ||
| ROICexgc | 16.58% | ||
| OM | 15.75% | ||
| PM (TTM) | 10.73% | ||
| GM | 21.86% | ||
| FCFM | 7.3% |
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%
ROICexcg growth 3Y25.83%
ROICexcg 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-Score4
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.63 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 193.87% | ||
| Cap/Sales | 5.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.22% | ||
| Profit Quality | 68.05% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 3.12 |
F-Score4
WACC9.52%
ROIC/WACC1.16
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)-31.54%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-57.71%
EPS Next Y-25.54%
EPS Next 2Y-5.07%
EPS Next 3Y-3.19%
EPS Next 5Y3.96%
Revenue 1Y (TTM)-8.58%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-14.9%
Revenue Next Year-12.69%
Revenue Next 2Y-2.63%
Revenue Next 3Y-0.66%
Revenue Next 5Y1.99%
EBIT growth 1Y-28.07%
EBIT growth 3Y31.59%
EBIT growth 5Y11.81%
EBIT Next Year-16.4%
EBIT Next 3Y2.04%
EBIT Next 5Y6.88%
FCF growth 1Y21.86%
FCF growth 3Y73.55%
FCF growth 5Y26.62%
OCF growth 1Y25.51%
OCF growth 3Y28.51%
OCF growth 5Y10.16%