PACCAR INC (PCAR) Fundamental Analysis & Valuation
NASDAQ:PCAR • US6937181088
124.92 USD
+3.73 (+3.08%)
At close: Mar 4, 2026
124.92 USD
0 (0%)
After Hours: 3/4/2026, 8:00:01 PM
This PCAR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
PCAR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. PCAR scores excellent on profitability, but there are some minor concerns on its financial health. PCAR has a correct valuation and a medium growth rate.
1. PCAR Profitability Analysis
1.1 Basic Checks
- In the past year PCAR was profitable.
- 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 better Return On Assets (5.36%) than 61.54% of its industry peers.
- PCAR's Return On Equity of 12.33% is fine compared to the rest of the industry. PCAR outperforms 70.77% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.38%, PCAR is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
- PCAR had an Average Return On Invested Capital over the past 3 years of 12.63%. This is above the industry average of 10.21%.
- The last Return On Invested Capital (8.38%) for PCAR is well below the 3 year average (12.63%), which needs to be investigated, but indicates that PCAR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.33% | ||
| ROIC | 8.38% |
ROA(3y)8.74%
ROA(5y)8.32%
ROE(3y)21.69%
ROE(5y)20.81%
ROIC(3y)12.63%
ROIC(5y)11.4%
1.3 Margins
- The Profit Margin of PCAR (8.35%) is better than 67.69% of its industry peers.
- In the last couple of years the Profit Margin of PCAR has grown nicely.
- The Operating Margin of PCAR (13.80%) is better than 65.38% of its industry peers.
- In the last couple of years the Operating Margin of PCAR has grown nicely.
- PCAR's Gross Margin of 20.07% is on the low side compared to the rest of the industry. PCAR is outperformed by 71.54% of its industry peers.
- PCAR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.8% | ||
| PM (TTM) | 8.35% | ||
| GM | 20.07% |
OM growth 3Y4.62%
OM growth 5Y10.49%
PM growth 3Y-7.2%
PM growth 5Y3.8%
GM growth 3Y1.51%
GM growth 5Y0.58%
2. PCAR Health Analysis
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 about the same amout of shares outstanding than it did 1 year ago.
- PCAR has more shares outstanding than it did 5 years ago.
- 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.
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/WACC0.93
WACC8.99%
2.3 Liquidity
- A Current Ratio of 1.70 indicates that PCAR should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.70, PCAR is doing worse than 66.15% of the companies in the same industry.
- PCAR has a Quick Ratio of 1.42. 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 of 1.42. This is comparable to the rest of the industry: PCAR outperforms 59.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.42 |
3. PCAR Growth Analysis
3.1 Past
- PCAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.98%.
- Measured over the past years, PCAR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.58% on average per year.
- PCAR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.50%.
- PCAR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.72% yearly.
EPS 1Y (TTM)-42.98%
EPS 3Y-7.83%
EPS 5Y12.58%
EPS Q2Q%-36.14%
Revenue 1Y (TTM)-15.5%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.72%
Sales Q2Q%-13.74%
3.2 Future
- Based on estimates for the next years, PCAR will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.06% on average per year.
- Based on estimates for the next years, PCAR will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.
EPS Next Y29.32%
EPS Next 2Y24.62%
EPS Next 3Y18.94%
EPS Next 5Y17.06%
Revenue Next Year3.73%
Revenue Next 2Y6.4%
Revenue Next 3Y7.22%
Revenue Next 5Y7.57%
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 stable: in the next years the growth will be about the same than in the last years.
4. PCAR Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 27.70, PCAR can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of PCAR is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.03. PCAR is around the same levels.
- A Price/Forward Earnings ratio of 21.42 indicates a rather expensive valuation of PCAR.
- PCAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PCAR is cheaper than 61.54% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of PCAR to the average of the S&P500 Index (25.11), we can say PCAR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.7 | ||
| Fwd PE | 21.42 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PCAR is valued a bit cheaper than the industry average as 74.62% of the companies are valued more expensively.
- PCAR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PCAR is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.67 | ||
| EV/EBITDA | 11.45 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- PCAR has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as PCAR's earnings are expected to grow with 18.94% in the coming years.
PEG (NY)0.94
PEG (5Y)2.2
EPS Next 2Y24.62%
EPS Next 3Y18.94%
5. PCAR Dividend Analysis
5.1 Amount
- PCAR has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.13, PCAR pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.06, PCAR pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
- On average, the dividend of PCAR grows each year by 12.60%, which is quite nice.
- PCAR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.6%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PCAR pays out 95.42% of its income as dividend. This is not a sustainable payout ratio.
- PCAR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.42%
EPS Next 2Y24.62%
EPS Next 3Y18.94%
PCAR Fundamentals: All Metrics, Ratios and Statistics
124.92
+3.73 (+3.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-27 2026-01-27/bmo
Earnings (Next)04-27 2026-04-27/bmo
Inst Owners72.45%
Inst Owner Change3.77%
Ins Owners1.23%
Ins Owner Change0.51%
Market Cap65.63B
Revenue(TTM)28.44B
Net Income(TTM)2.38B
Analysts71.85
Price Target125.23 (0.25%)
Short Float %2.35%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend4.32
Dividend Growth(5Y)12.6%
DP95.42%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-11 2026-02-11 (0.33)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.94%
Min EPS beat(2)-5.82%
Max EPS beat(2)-2.05%
EPS beat(4)1
Avg EPS beat(4)-11.08%
Min EPS beat(4)-40.48%
Max EPS beat(4)4.02%
EPS beat(8)2
Avg EPS beat(8)-6.22%
EPS beat(12)6
Avg EPS beat(12)0.33%
EPS beat(16)10
Avg EPS beat(16)3.23%
Revenue beat(2)2
Avg Revenue beat(2)4.5%
Min Revenue beat(2)2.16%
Max Revenue beat(2)6.84%
Revenue beat(4)4
Avg Revenue beat(4)3.86%
Min Revenue beat(4)1.7%
Max Revenue beat(4)6.84%
Revenue beat(8)7
Avg Revenue beat(8)2.9%
Revenue beat(12)11
Avg Revenue beat(12)3.71%
Revenue beat(16)15
Avg Revenue beat(16)4.76%
PT rev (1m)8.97%
PT rev (3m)15.54%
EPS NQ rev (1m)-5.17%
EPS NQ rev (3m)-5.6%
EPS NY rev (1m)-2.73%
EPS NY rev (3m)-5.5%
Revenue NQ rev (1m)-4.4%
Revenue NQ rev (3m)-3.45%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.7 | ||
| Fwd PE | 21.42 | ||
| P/S | 2.31 | ||
| P/FCF | 21.67 | ||
| P/OCF | 14.86 | ||
| P/B | 3.41 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 11.45 |
EPS(TTM)4.51
EY3.61%
EPS(NY)5.83
Fwd EY4.67%
FCF(TTM)5.77
FCFY4.62%
OCF(TTM)8.4
OCFY6.73%
SpS54.14
BVpS36.67
TBVpS36.67
PEG (NY)0.94
PEG (5Y)2.2
Graham Number61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.33% | ||
| ROCE | 10.77% | ||
| ROIC | 8.38% | ||
| ROICexc | 11.24% | ||
| ROICexgc | 390.19% | ||
| OM | 13.8% | ||
| PM (TTM) | 8.35% | ||
| GM | 20.07% | ||
| FCFM | 10.65% |
ROA(3y)8.74%
ROA(5y)8.32%
ROE(3y)21.69%
ROE(5y)20.81%
ROIC(3y)12.63%
ROIC(5y)11.4%
ROICexc(3y)17.33%
ROICexc(5y)15.32%
ROICexgc(3y)161.34%
ROICexgc(5y)102.47%
ROCE(3y)18.55%
ROCE(5y)16.45%
ROICexgc growth 3Y195.02%
ROICexgc growth 5Y121.92%
ROICexc growth 3Y-5.15%
ROICexc growth 5Y11.82%
OM growth 3Y4.62%
OM growth 5Y10.49%
PM growth 3Y-7.2%
PM growth 5Y3.8%
GM growth 3Y1.51%
GM growth 5Y0.58%
F-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 167.59% | ||
| Cap/Sales | 4.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.9% | ||
| Profit Quality | 127.5% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | N/A |
F-Score6
WACC8.99%
ROIC/WACC0.93
Cap/Depr(3y)164.87%
Cap/Depr(5y)170.27%
Cap/Sales(3y)4.55%
Cap/Sales(5y)5.08%
Profit Quality(3y)86.9%
Profit Quality(5y)68.94%
High Growth Momentum
Growth
EPS 1Y (TTM)-42.98%
EPS 3Y-7.83%
EPS 5Y12.58%
EPS Q2Q%-36.14%
EPS Next Y29.32%
EPS Next 2Y24.62%
EPS Next 3Y18.94%
EPS Next 5Y17.06%
Revenue 1Y (TTM)-15.5%
Revenue growth 3Y-0.44%
Revenue growth 5Y8.72%
Sales Q2Q%-13.74%
Revenue Next Year3.73%
Revenue Next 2Y6.4%
Revenue Next 3Y7.22%
Revenue Next 5Y7.57%
EBIT growth 1Y-36.71%
EBIT growth 3Y4.17%
EBIT growth 5Y20.13%
EBIT Next Year35.68%
EBIT Next 3Y25.83%
EBIT Next 5Y15.61%
FCF growth 1Y4.62%
FCF growth 3Y22.78%
FCF growth 5Y17.56%
OCF growth 1Y-4.85%
OCF growth 3Y13.41%
OCF growth 5Y8.13%
PACCAR INC / PCAR FAQ
Can you provide the ChartMill fundamental rating for PACCAR INC?
ChartMill assigns a fundamental rating of 6 / 10 to PCAR.
What is the valuation status of PACCAR INC (PCAR) stock?
ChartMill assigns a valuation rating of 5 / 10 to PACCAR INC (PCAR). This can be considered as Fairly Valued.
Can you provide the profitability details for PACCAR INC?
PACCAR INC (PCAR) has a profitability rating of 7 / 10.
What is the valuation of PACCAR INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PACCAR INC (PCAR) is 27.7 and the Price/Book (PB) ratio is 3.41.
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 95.42%.