PACCAR INC (PCAR) Stock Fundamental Analysis
USA - NASDAQ:PCAR - US6937181088 - Common Stock
99.1001 USD
+0.02 (+0.02%)
Taking everything into account, PCAR scores 5 out of 10 in our fundamental rating. PCAR was compared to 129 industry peers in the Machinery industry. PCAR has an excellent profitability rating, but there are concerns on its financial health. PCAR has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years PCAR has been profitable.
PCAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.97%, PCAR is doing good in the industry, outperforming 68.99% of the companies in the same industry.
PCAR has a Return On Equity of 16.22%. This is in the better half of the industry: PCAR outperforms 77.52% of its industry peers.
The Return On Invested Capital of PCAR (9.62%) is better than 68.22% of its industry peers.
PCAR had an Average Return On Invested Capital over the past 3 years of 13.42%. This is above the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 16.22% | ||
| ROIC | 9.62% |
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 9.88%, PCAR is doing good in the industry, outperforming 70.54% of the companies in the same industry.
PCAR's Profit Margin has improved in the last couple of years.
PCAR's Operating Margin of 14.86% is fine compared to the rest of the industry. PCAR outperforms 69.77% of its industry peers.
PCAR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.19%, PCAR is doing worse than 69.77% 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 | 14.86% | ||
| PM (TTM) | 9.88% | ||
| GM | 21.19% |
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.
The number of shares outstanding for PCAR has been increased compared to 1 year ago.
PCAR has more shares outstanding than it did 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 2.99. This indicates that PCAR is financially healthy and has little risk of bankruptcy at the moment.
PCAR has a Altman-Z score (2.99) which is comparable to the rest of the industry.
The Debt to FCF ratio of PCAR is 5.53, which is a neutral value as it means it would take PCAR, 5.53 years of fcf income to pay off all of its debts.
PCAR's Debt to FCF ratio of 5.53 is in line compared to the rest of the industry. PCAR outperforms 46.51% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that PCAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, PCAR is doing worse than 73.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.53 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.04
WACC9.28%
2.3 Liquidity
PCAR has a Current Ratio of 1.64. This is a normal value and indicates that PCAR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PCAR (1.64) is worse than 66.67% of its industry peers.
A Quick Ratio of 1.24 indicates that PCAR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.24, PCAR perfoms like the industry average, outperforming 48.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for PCAR have decreased strongly by -38.14% in the last year.
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.
The Revenue for PCAR has decreased by -11.87% in the past year. This is quite bad
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)-38.14%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-35.68%
Revenue 1Y (TTM)-11.87%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-14.38%
3.2 Future
The Earnings Per Share is expected to grow by 3.78% 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 1.77% yearly.
EPS Next Y-34.04%
EPS Next 2Y-9.6%
EPS Next 3Y-3.01%
EPS Next 5Y3.78%
Revenue Next Year-14.63%
Revenue Next 2Y-4.06%
Revenue Next 3Y-0.6%
Revenue Next 5Y1.77%
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
With a Price/Earnings ratio of 16.97, PCAR is valued correctly.
Based on the Price/Earnings ratio, PCAR is valued a bit cheaper than the industry average as 77.52% of the companies are valued more expensively.
PCAR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
With a Price/Forward Earnings ratio of 15.33, PCAR is valued correctly.
72.09% of the companies in the same industry are more expensive than PCAR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.29, PCAR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.97 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCAR is valued a bit cheaper than the industry average as 71.32% 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 70.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.07 | ||
| EV/EBITDA | 11.38 |
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 -3.01% in the coming years.
PEG (NY)N/A
PEG (5Y)5.93
EPS Next 2Y-9.6%
EPS Next 3Y-3.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, PCAR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.79, PCAR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.36, PCAR pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
72.73% of the earnings are spent on dividend by PCAR. 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.
DP72.73%
EPS Next 2Y-9.6%
EPS Next 3Y-3.01%
NASDAQ:PCAR (10/3/2025, 12:55:03 PM)
99.1001
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner Change-3.45%
Ins Owners1.23%
Ins Owner Change3.87%
Market Cap52.04B
Analysts70.37
Price Target106.19 (7.15%)
Short Float %2.37%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend4.37
Dividend Growth(5Y)14.79%
DP72.73%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.23%
Min EPS beat(2)-40.48%
Max EPS beat(2)4.02%
EPS beat(4)1
Avg EPS beat(4)-10.17%
Min EPS beat(4)-40.48%
Max EPS beat(4)4.02%
EPS beat(8)4
Avg EPS beat(8)-1.85%
EPS beat(12)8
Avg EPS beat(12)3.19%
EPS beat(16)11
Avg EPS beat(16)3.56%
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)1.7%
Max Revenue beat(2)4.73%
Revenue beat(4)3
Avg Revenue beat(4)1.71%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)4.73%
Revenue beat(8)7
Avg Revenue beat(8)3.4%
Revenue beat(12)11
Avg Revenue beat(12)4.31%
Revenue beat(16)15
Avg Revenue beat(16)5.81%
PT rev (1m)-0.06%
PT rev (3m)3.5%
EPS NQ rev (1m)-1.86%
EPS NQ rev (3m)-16.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.97 | ||
| Fwd PE | 15.33 | ||
| P/S | 1.67 | ||
| P/FCF | 18.07 | ||
| P/OCF | 11.63 | ||
| P/B | 2.75 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)5.84
EY5.89%
EPS(NY)6.46
Fwd EY6.52%
FCF(TTM)5.48
FCFY5.53%
OCF(TTM)8.52
OCFY8.6%
SpS59.23
BVpS36.07
TBVpS36.07
PEG (NY)N/A
PEG (5Y)5.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 16.22% | ||
| ROCE | 12.21% | ||
| ROIC | 9.62% | ||
| ROICexc | 11.27% | ||
| ROICexgc | 13.07% | ||
| OM | 14.86% | ||
| PM (TTM) | 9.88% | ||
| GM | 21.19% | ||
| FCFM | 9.26% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.53 | ||
| Debt/EBITDA | 2.91 | ||
| Cap/Depr | 185.03% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.61% | ||
| Profit Quality | 93.72% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 2.99 |
F-Score4
WACC9.28%
ROIC/WACC1.04
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)-38.14%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-35.68%
EPS Next Y-34.04%
EPS Next 2Y-9.6%
EPS Next 3Y-3.01%
EPS Next 5Y3.78%
Revenue 1Y (TTM)-11.87%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-14.38%
Revenue Next Year-14.63%
Revenue Next 2Y-4.06%
Revenue Next 3Y-0.6%
Revenue Next 5Y1.77%
EBIT growth 1Y-33.94%
EBIT growth 3Y31.59%
EBIT growth 5Y11.81%
EBIT Next Year-14.57%
EBIT Next 3Y1.4%
EBIT Next 5Y6.88%
FCF growth 1Y21.25%
FCF growth 3Y73.55%
FCF growth 5Y26.62%
OCF growth 1Y24.68%
OCF growth 3Y28.51%
OCF growth 5Y10.16%