104.95 USD
+0.03 (+0.03%)
104.95 USD
0 (0%)
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 belongs to the best of the industry regarding profitability, there are concerns on its financial health. PCAR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PCAR was profitable.
In the past year PCAR had a positive cash flow from operations.
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 has a better Return On Assets (6.09%) than 66.15% of its industry peers.
PCAR has a Return On Equity of 13.89%. This is in the better half of the industry: PCAR outperforms 73.85% of its industry peers.
PCAR's Return On Invested Capital of 8.57% is fine compared to the rest of the industry. PCAR outperforms 62.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PCAR is above the industry average of 10.34%.
The last Return On Invested Capital (8.57%) 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 | 8.57% |
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 (9.11%) is better than 70.00% of its industry peers.
In the last couple of years the Profit Margin of PCAR has grown nicely.
The Operating Margin of PCAR (14.04%) is better than 67.69% of its industry peers.
In the last couple of years the Operating Margin of PCAR has grown nicely.
PCAR has a Gross Margin of 20.67%. This is in the lower half of the industry: PCAR underperforms 70.77% of its industry peers.
In the last couple of years the Gross Margin of PCAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.04% | ||
| 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
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.
The number of shares outstanding for PCAR has been increased compared to 5 years ago.
Compared to 1 year ago, PCAR has a worse debt to assets ratio.
2.2 Solvency
PCAR has an Altman-Z score of 3.04. This indicates that PCAR is financially healthy and has little risk of bankruptcy at the moment.
PCAR has a Altman-Z score of 3.04. This is comparable to the rest of the industry: PCAR outperforms 50.77% of its industry peers.
The Debt to FCF ratio of PCAR is 4.96, which is a neutral value as it means it would take PCAR, 4.96 years of fcf income to pay off all of its debts.
PCAR's Debt to FCF ratio of 4.96 is in line compared to the rest of the industry. PCAR outperforms 55.38% of its industry peers.
PCAR has a Debt/Equity ratio of 0.82. This is a neutral value indicating PCAR is somewhat dependend on debt financing.
The Debt to Equity ratio of PCAR (0.82) is worse than 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 4.96 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.96
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.76 indicates that PCAR should not have too much problems paying its short term obligations.
The Current ratio of PCAR (1.76) is worse than 63.85% of its industry peers.
PCAR has a Quick Ratio of 1.38. This is a normal value and indicates that PCAR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PCAR (1.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.38 |
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%.
PCAR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.86% yearly.
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
The Earnings Per Share is expected to grow by 5.53% on average over the next years.
The Revenue is expected to grow by 0.91% on average over the next years.
EPS Next Y-35.95%
EPS Next 2Y-11.67%
EPS Next 3Y-3.08%
EPS Next 5Y5.53%
Revenue Next Year-16.69%
Revenue Next 2Y-7.74%
Revenue Next 3Y-1.71%
Revenue Next 5Y0.91%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 20.54, which indicates a rather expensive current valuation of PCAR.
PCAR's Price/Earnings ratio is a bit cheaper when compared to the industry. PCAR is cheaper than 66.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, PCAR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.01, the valuation of PCAR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PCAR indicates a somewhat cheap valuation: PCAR is cheaper than 66.15% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PCAR to the average of the S&P500 Index (36.12), we can say PCAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.54 | ||
| Fwd PE | 17.01 |
4.2 Price Multiples
66.15% of the companies in the same industry are more expensive than PCAR, based on the Enterprise Value to EBITDA ratio.
PCAR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PCAR is cheaper than 75.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.25 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
PCAR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PCAR's earnings are expected to decrease with -3.08% in the coming years.
PEG (NY)N/A
PEG (5Y)7.18
EPS Next 2Y-11.67%
EPS Next 3Y-3.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, PCAR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.97, PCAR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.35, PCAR pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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 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-11.67%
EPS Next 3Y-3.08%
104.95
+0.03 (+0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner Change0.56%
Ins Owners1.23%
Ins Owner Change0.13%
Market Cap55.11B
Revenue(TTM)29.53B
Net Income(TTM)2.69B
Analysts71.11
Price Target108.38 (3.27%)
Short Float %2.15%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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)2.06%
PT rev (3m)2%
EPS NQ rev (1m)-14.63%
EPS NQ rev (3m)-19%
EPS NY rev (1m)-2.67%
EPS NY rev (3m)-2.9%
Revenue NQ rev (1m)-6.04%
Revenue NQ rev (3m)-8.01%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.54 | ||
| Fwd PE | 17.01 | ||
| P/S | 1.87 | ||
| P/FCF | 17.25 | ||
| P/OCF | 11.68 | ||
| P/B | 2.85 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)5.11
EY4.87%
EPS(NY)6.17
Fwd EY5.88%
FCF(TTM)6.08
FCFY5.8%
OCF(TTM)8.98
OCFY8.56%
SpS56.24
BVpS36.89
TBVpS36.89
PEG (NY)N/A
PEG (5Y)7.18
Graham Number65.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 13.89% | ||
| ROCE | 10.88% | ||
| ROIC | 8.57% | ||
| ROICexc | 11.24% | ||
| ROICexgc | 13.16% | ||
| OM | 14.04% | ||
| 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-Score4
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 4.96 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 181.03% | ||
| Cap/Sales | 5.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.56% | ||
| Profit Quality | 118.7% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.04 |
F-Score4
WACC8.88%
ROIC/WACC0.96
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-35.95%
EPS Next 2Y-11.67%
EPS Next 3Y-3.08%
EPS Next 5Y5.53%
Revenue 1Y (TTM)-15.22%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-13.4%
Revenue Next Year-16.69%
Revenue Next 2Y-7.74%
Revenue Next 3Y-1.71%
Revenue Next 5Y0.91%
EBIT growth 1Y-37.9%
EBIT growth 3Y31.59%
EBIT growth 5Y11.81%
EBIT Next Year-14.57%
EBIT Next 3Y1.4%
EBIT Next 5Y5.83%
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 -35.95% 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%.