PACCAR INC (PCAR)
US6937181088 - Common Stock
PCAR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. While PCAR has a great profitability rating, there are some minor concerns on its financial health. PCAR is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years PCAR has been profitable.
In the past 5 years PCAR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.27%, PCAR belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
The Return On Equity of PCAR (28.97%) is better than 90.70% of its industry peers.
PCAR has a better Return On Invested Capital (15.47%) than 86.82% 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 10.77%.
The 3 year average ROIC (11.69%) for PCAR is below the current ROIC(15.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.27% | ||
| ROE | 28.97% | ||
| ROIC | 15.47% |
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 has a better Profit Margin (13.10%) than 85.27% of its industry peers.
PCAR's Profit Margin has improved in the last couple of years.
PCAR has a Operating Margin of 18.35%. This is amongst the best in the industry. PCAR outperforms 86.82% of its industry peers.
In the last couple of years the Operating Margin of PCAR has grown nicely.
Looking at the Gross Margin, with a value of 23.44%, PCAR is doing worse than 62.02% of the companies in the same industry.
PCAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.35% | ||
| PM (TTM) | 13.1% | ||
| GM | 23.44% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PCAR is creating value.
Compared to 1 year ago, PCAR has less shares outstanding
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
An Altman-Z score of 3.54 indicates that PCAR is not in any danger for bankruptcy at the moment.
The Altman-Z score of PCAR (3.54) is better than 60.47% of its industry peers.
The Debt to FCF ratio of PCAR is 4.86, which is a neutral value as it means it would take PCAR, 4.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PCAR (4.86) is comparable to the rest of the industry.
PCAR has a Debt/Equity ratio of 0.90. This is a neutral value indicating PCAR is somewhat dependend on debt financing.
PCAR's Debt to Equity ratio of 0.90 is on the low side compared to the rest of the industry. PCAR is outperformed by 82.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.81
WACC8.54%
2.3 Liquidity
PCAR has a Current Ratio of 1.54. 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 1.54 is on the low side compared to the rest of the industry. PCAR is outperformed by 74.42% of its industry peers.
PCAR has a Quick Ratio of 1.21. 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 (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
PCAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.01%, which is quite impressive.
PCAR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.04% yearly.
The Revenue has grown by 21.89% in the past year. This is a very strong growth!
PCAR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.38% yearly.
EPS 1Y (TTM)67.01%
EPS 3Y37.01%
EPS 5Y9.04%
EPS growth Q2Q53.41%
Revenue 1Y (TTM)21.89%
Revenue growth 3Y23.32%
Revenue growth 5Y8.38%
Revenue growth Q2Q11.65%
3.2 Future
Based on estimates for the next years, PCAR will show a decrease in Earnings Per Share. The EPS will decrease by -9.92% on average per year.
The Revenue is expected to grow by 0.02% on average over the next years.
EPS Next Y-14.17%
EPS Next 2Y-4.78%
EPS Next 3Y-0.34%
EPS Next 5Y-9.92%
Revenue Next Year-4.9%
Revenue Next 2Y0.3%
Revenue Next 3Y2.86%
Revenue Next 5Y0.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 12.39, the valuation of PCAR can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of PCAR indicates a rather cheap valuation: PCAR is cheaper than 84.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.34. PCAR is valued rather cheaply when compared to this.
PCAR is valuated correctly with a Price/Forward Earnings ratio of 14.44.
Based on the Price/Forward Earnings ratio, PCAR is valued a bit cheaper than 77.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.78. PCAR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 14.44 |
4.2 Price Multiples
PCAR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PCAR is cheaper than 77.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PCAR is valued a bit cheaper than 67.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.34 | ||
| EV/EBITDA | 9.16 |
4.3 Compensation for Growth
PCAR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y-4.78%
EPS Next 3Y-0.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, PCAR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.66, PCAR has a dividend in line with its industry peers.
With a Dividend Yield of 0.91, PCAR pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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
33.01% of the earnings are spent on dividend by PCAR. This is a low number and sustainable payout ratio.
DP33.01%
EPS Next 2Y-4.78%
EPS Next 3Y-0.34%
PACCAR INC
NASDAQ:PCAR (4/15/2024, 11:56:47 AM)
119.21
+1.05 (+0.89%)
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 Cap62.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 14.44 | ||
| 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)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.27% | ||
| ROE | 28.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.35% | ||
| PM (TTM) | 13.1% | ||
| GM | 23.44% | ||
| 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 | 0.9 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.21 | ||
| 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)
Growth
EPS 1Y (TTM)67.01%
EPS 3Y37.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.89%
Revenue growth 3Y23.32%
Revenue growth 5Y
Revenue growth 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