PACCAR INC (PCAR)
US6937181088 - Common Stock
We assign a fundamental rating of 6 out of 10 to PCAR. PCAR was compared to 132 industry peers in the Machinery industry. PCAR has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on PCAR.
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.
In the past 5 years PCAR has always been profitable.
PCAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PCAR has a Return On Assets of 12.05%. This is amongst the best in the industry. PCAR outperforms 86.92% of its industry peers.
With an excellent Return On Equity value of 28.04%, PCAR belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
PCAR has a Return On Invested Capital of 15.96%. This is amongst the best in the industry. PCAR outperforms 87.69% of its industry peers.
PCAR had an Average Return On Invested Capital over the past 3 years of 11.69%. This is in line with the industry average of 11.19%.
The last Return On Invested Capital (15.96%) for PCAR is above the 3 year average (11.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 28.04% | ||
| ROIC | 15.96% |
ROA(3y)8.88%
ROA(5y)7.93%
ROE(3y)22.65%
ROE(5y)21.01%
ROIC(3y)11.69%
ROIC(5y)10.34%
1.3 Margins
PCAR's Profit Margin of 14.07% is amongst the best of the industry. PCAR outperforms 85.38% of its industry peers.
PCAR's Profit Margin has improved in the last couple of years.
PCAR has a better Operating Margin (19.83%) than 86.92% of its industry peers.
PCAR's Operating Margin has improved in the last couple of years.
The Gross Margin of PCAR (23.50%) is worse than 64.62% of its industry peers.
In the last couple of years the Gross Margin of PCAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.83% | ||
| PM (TTM) | 14.07% | ||
| GM | 23.5% |
OM growth 3Y25%
OM growth 5Y8.43%
PM growth 3Y23.64%
PM growth 5Y6.99%
GM growth 3Y6.33%
GM growth 5Y3.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PCAR is creating value.
The number of shares outstanding for PCAR has been reduced compared to 1 year ago.
The number of shares outstanding for PCAR has been increased compared to 5 years ago.
The debt/assets ratio for PCAR is higher compared to a year ago.
2.2 Solvency
PCAR has an Altman-Z score of 3.44. This indicates that PCAR is financially healthy and has little risk of bankruptcy at the moment.
PCAR has a better Altman-Z score (3.44) than 60.77% of its industry peers.
PCAR has a debt to FCF ratio of 5.01. This is a neutral value as PCAR would need 5.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.01, PCAR is in line with its industry, outperforming 55.38% of the companies in the same industry.
PCAR has a Debt/Equity ratio of 0.81. This is a neutral value indicating PCAR is somewhat dependend on debt financing.
PCAR has a Debt to Equity ratio of 0.81. This is in the lower half of the industry: PCAR underperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 3.44 |
ROIC/WACC2.16
WACC7.39%
2.3 Liquidity
PCAR has a Current Ratio of 1.78. This is a normal value and indicates that PCAR is financially healthy and should not expect problems in meeting its short term obligations.
PCAR's Current ratio of 1.78 is on the low side compared to the rest of the industry. PCAR is outperformed by 66.92% of its industry peers.
A Quick Ratio of 1.35 indicates that PCAR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.35, PCAR perfoms like the industry average, outperforming 56.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.82% over the past year.
Measured over the past years, PCAR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.04% on average per year.
Looking at the last year, PCAR shows a quite strong growth in Revenue. The Revenue has grown by 8.44% in the last year.
The Revenue has been growing by 8.38% on average over the past years. This is quite good.
EPS 1Y (TTM)20.82%
EPS 3Y37.01%
EPS 5Y9.04%
EPS Q2Q%-8.58%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y23.32%
Revenue growth 5Y8.38%
Sales Q2Q%3.92%
3.2 Future
Based on estimates for the next years, PCAR will show a decrease in Earnings Per Share. The EPS will decrease by -3.55% on average per year.
The Revenue is expected to grow by 0.48% on average over the next years.
EPS Next Y-14.53%
EPS Next 2Y-6.59%
EPS Next 3Y-0.23%
EPS Next 5Y-3.55%
Revenue Next Year-2.85%
Revenue Next 2Y-0.23%
Revenue Next 3Y3.6%
Revenue Next 5Y0.48%
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.
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 10.08, the valuation of PCAR can be described as very reasonable.
Based on the Price/Earnings ratio, PCAR is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 30.52, PCAR is valued rather cheaply.
PCAR is valuated reasonably with a Price/Forward Earnings ratio of 11.33.
81.54% of the companies in the same industry are more expensive than PCAR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.99. PCAR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 11.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCAR indicates a rather cheap valuation: PCAR is cheaper than 90.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PCAR is valued a bit cheaper than 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.34 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
PCAR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y-6.59%
EPS Next 3Y-0.23%
5. Dividend
5.1 Amount
PCAR has a Yearly Dividend Yield of 1.30%.
PCAR's Dividend Yield is a higher than the industry average which is at 1.76.
Compared to an average S&P500 Dividend Yield of 2.26, PCAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
On average, the dividend of PCAR grows each year by 8.66%, which is quite nice.
PCAR has been paying a dividend for at least 10 years, so it has a reliable track record.
PCAR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.66%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
45.46% of the earnings are spent on dividend by PCAR. This is a bit on the high side, but may be sustainable.
DP45.46%
EPS Next 2Y-6.59%
EPS Next 3Y-0.23%
PACCAR INC
NASDAQ:PCAR (9/13/2024, 8:00:00 PM)
After market: 95.12 0 (0%)95.12
+0.05 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap49.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 11.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 28.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.83% | ||
| PM (TTM) | 14.07% | ||
| GM | 23.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.82%
EPS 3Y37.01%
EPS 5Y
EPS Q2Q%
EPS Next Y-14.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.44%
Revenue growth 3Y23.32%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y