PACCAR INC (PCAR) Stock Fundamental Analysis
NASDAQ:PCAR - Nasdaq - US6937181088 - Common Stock - Currency: USD
PCAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. PCAR has an excellent profitability rating, but 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.
PCAR had a positive operating cash flow in the past year.
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 (8.13%) than 72.66% of its industry peers.
The Return On Equity of PCAR (19.26%) is better than 81.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.00%, PCAR is in the better half of the industry, outperforming 72.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PCAR is above the industry average of 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 19.26% | ||
| ROIC | 11% |
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 10.73%, PCAR is doing good in the industry, outperforming 73.44% of the companies in the same industry.
PCAR's Profit Margin has improved in the last couple of years.
PCAR has a better Operating Margin (15.75%) than 75.78% of its industry peers.
PCAR's Operating Margin has improved in the last couple of years.
PCAR has a Gross Margin of 21.86%. This is in the lower half of the industry: PCAR underperforms 70.31% of its industry peers.
In the last couple of years the Gross Margin of PCAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.75% | ||
| PM (TTM) | 10.73% | ||
| GM | 21.86% |
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
PCAR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
An Altman-Z score of 3.12 indicates that PCAR is not in any danger for bankruptcy at the moment.
PCAR has a Altman-Z score (3.12) which is comparable to the rest of the industry.
PCAR has a debt to FCF ratio of 6.63. This is a slightly negative value and a sign of low solvency as PCAR would need 6.63 years to pay back of all of its debts.
PCAR has a Debt to FCF ratio (6.63) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.87 indicates that PCAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, PCAR is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.63 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.17
WACC9.4%
2.3 Liquidity
PCAR has a Current Ratio of 1.62. 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 Current ratio of 1.62. This is in the lower half of the industry: PCAR underperforms 68.75% of its industry peers.
PCAR has a Quick Ratio of 1.24. 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 (1.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for PCAR have decreased strongly by -31.54% 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.
PCAR shows a decrease in Revenue. In the last year, the revenue decreased by -8.58%.
The Revenue has been growing slightly by 5.63% on average over the past years.
EPS 1Y (TTM)-31.54%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-57.71%
Revenue 1Y (TTM)-8.58%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-14.9%
3.2 Future
Based on estimates for the next years, PCAR will show a small growth in Earnings Per Share. The EPS will grow by 3.96% on average per year.
PCAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.99% yearly.
EPS Next Y-25.54%
EPS Next 2Y-5.07%
EPS Next 3Y-3.19%
EPS Next 5Y3.96%
Revenue Next Year-12.69%
Revenue Next 2Y-2.63%
Revenue Next 3Y-0.66%
Revenue Next 5Y1.99%
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 accelerating.
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
PCAR is valuated correctly with a Price/Earnings ratio of 14.73.
PCAR's Price/Earnings ratio is rather cheap when compared to the industry. PCAR is cheaper than 83.59% of the companies in the same industry.
PCAR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
PCAR is valuated correctly with a Price/Forward Earnings ratio of 13.64.
Based on the Price/Forward Earnings ratio, PCAR is valued a bit cheaper than the industry average as 78.91% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PCAR to the average of the S&P500 Index (21.76), we can say PCAR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 13.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCAR is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PCAR indicates a somewhat cheap valuation: PCAR is cheaper than 61.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.6 | ||
| EV/EBITDA | 9.97 |
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 -3.19% in the coming years.
PEG (NY)N/A
PEG (5Y)5.15
EPS Next 2Y-5.07%
EPS Next 3Y-3.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, PCAR has a reasonable but not impressive dividend return.
PCAR's Dividend Yield is a higher than the industry average which is at 1.81.
With a Dividend Yield of 1.33, PCAR pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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
PCAR pays out 63.91% 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.
DP63.91%
EPS Next 2Y-5.07%
EPS Next 3Y-3.19%
97.21
-2.01 (-2.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.87%
Inst Owner Change0.01%
Ins Owners1.24%
Ins Owner Change4.02%
Market Cap51.03B
Analysts66.67
Price Target102.6 (5.54%)
Short Float %2.34%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend4.37
Dividend Growth(5Y)14.79%
DP63.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.2%
Min EPS beat(2)-40.48%
Max EPS beat(2)-3.92%
EPS beat(4)0
Avg EPS beat(4)-11.75%
Min EPS beat(4)-40.48%
Max EPS beat(4)-0.31%
EPS beat(8)4
Avg EPS beat(8)-1.75%
EPS beat(12)8
Avg EPS beat(12)3.83%
EPS beat(16)10
Avg EPS beat(16)3.26%
Revenue beat(2)2
Avg Revenue beat(2)1.7%
Min Revenue beat(2)1.69%
Max Revenue beat(2)1.7%
Revenue beat(4)3
Avg Revenue beat(4)1.35%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)3.26%
Revenue beat(8)7
Avg Revenue beat(8)2.88%
Revenue beat(12)11
Avg Revenue beat(12)4.59%
Revenue beat(16)15
Avg Revenue beat(16)5.73%
PT rev (1m)-1.51%
PT rev (3m)-10.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.65%
EPS NY rev (1m)-1.07%
EPS NY rev (3m)-22.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 13.64 | ||
| P/S | 1.58 | ||
| P/FCF | 21.6 | ||
| P/OCF | 12.5 | ||
| P/B | 2.83 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 9.97 |
EPS(TTM)6.6
EY6.79%
EPS(NY)7.13
Fwd EY7.33%
FCF(TTM)4.5
FCFY4.63%
OCF(TTM)7.78
OCFY8%
SpS61.65
BVpS34.33
TBVpS34.33
PEG (NY)N/A
PEG (5Y)5.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 19.26% | ||
| ROCE | 13.97% | ||
| ROIC | 11% | ||
| ROICexc | 14.14% | ||
| ROICexgc | 16.58% | ||
| OM | 15.75% | ||
| PM (TTM) | 10.73% | ||
| GM | 21.86% | ||
| FCFM | 7.3% |
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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.63 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 193.87% | ||
| Cap/Sales | 5.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.22% | ||
| Profit Quality | 68.05% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 3.12 |
F-Score4
WACC9.4%
ROIC/WACC1.17
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)-31.54%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-57.71%
EPS Next Y-25.54%
EPS Next 2Y-5.07%
EPS Next 3Y-3.19%
EPS Next 5Y3.96%
Revenue 1Y (TTM)-8.58%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-14.9%
Revenue Next Year-12.69%
Revenue Next 2Y-2.63%
Revenue Next 3Y-0.66%
Revenue Next 5Y1.99%
EBIT growth 1Y-28.07%
EBIT growth 3Y31.59%
EBIT growth 5Y11.81%
EBIT Next Year-16.4%
EBIT Next 3Y2.04%
EBIT Next 5Y6.88%
FCF growth 1Y21.86%
FCF growth 3Y73.55%
FCF growth 5Y26.62%
OCF growth 1Y25.51%
OCF growth 3Y28.51%
OCF growth 5Y10.16%