122.91 USD
-0.41 (-0.33%)
At close: Jan 30, 2026
122.91 USD
0 (0%)
After Hours: 1/30/2026, 8:12:24 PM
We assign a fundamental rating of 5 out of 10 to PCAR. PCAR was compared to 132 industry peers in the Machinery industry. While PCAR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PCAR has a decent growth rate and is not valued too expensively.
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.
- 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 5.36%, PCAR is doing good in the industry, outperforming 62.12% of the companies in the same industry.
- PCAR has a Return On Equity of 12.33%. This is in the better half of the industry: PCAR outperforms 70.45% of its industry peers.
- With a decent Return On Invested Capital value of 8.38%, PCAR is doing good in the industry, outperforming 62.12% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PCAR is above the industry average of 10.20%.
- 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
- PCAR has a Profit Margin of 8.35%. This is in the better half of the industry: PCAR outperforms 67.42% of its industry peers.
- PCAR's Profit Margin has improved in the last couple of years.
- PCAR's Operating Margin of 13.80% is fine compared to the rest of the industry. PCAR outperforms 66.67% of its industry peers.
- PCAR's Operating Margin has improved in the last couple of years.
- PCAR has a Gross Margin of 20.07%. This is in the lower half of the industry: PCAR underperforms 71.21% 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. 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.
- Compared to 1 year ago, PCAR has about the same amount of shares outstanding.
- PCAR has more shares outstanding than it did 5 years ago.
- PCAR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.88
WACC9.49%
2.3 Liquidity
- PCAR has a Current Ratio of 1.70. This is a normal value and indicates that PCAR is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.70, PCAR is not doing good in the industry: 64.39% of the companies in the same industry are doing better.
- 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's Quick ratio of 1.42 is fine compared to the rest of the industry. PCAR outperforms 61.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
- The earnings per share for PCAR have decreased strongly by -42.98% in the last year.
- PCAR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.58% yearly.
- PCAR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.50%.
- The Revenue has been growing by 8.72% on average over the past years. This is quite good.
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
- PCAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.09% yearly.
- PCAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.35% yearly.
EPS Next Y32.94%
EPS Next 2Y26.16%
EPS Next 3Y19.37%
EPS Next 5Y23.09%
Revenue Next Year3.22%
Revenue Next 2Y6.95%
Revenue Next 3Y4.59%
Revenue Next 5Y3.35%
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
- Based on the Price/Earnings ratio of 27.25, the valuation of PCAR can be described as expensive.
- PCAR's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.30. PCAR is around the same levels.
- A Price/Forward Earnings ratio of 20.50 indicates a rather expensive valuation of PCAR.
- PCAR's Price/Forward Earnings is on the same level as the industry average.
- PCAR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.25 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PCAR is valued a bit cheaper than 72.73% of the companies in the same industry.
- PCAR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PCAR is cheaper than 67.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.31 | ||
| EV/EBITDA | 11.63 |
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.
- PCAR's earnings are expected to grow with 19.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)2.17
EPS Next 2Y26.16%
EPS Next 3Y19.37%
5. Dividend
5.1 Amount
- PCAR has a Yearly Dividend Yield of 1.07%.
- Compared to an average industry Dividend Yield of 1.02, PCAR pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.07, PCAR pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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.
- The dividend of PCAR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.42%
EPS Next 2Y26.16%
EPS Next 3Y19.37%
PACCAR INC / PCAR FAQ
Can you provide the ChartMill fundamental rating for PACCAR INC?
ChartMill assigns a fundamental rating of 5 / 10 to PCAR.
What is the valuation status of PACCAR INC (PCAR) stock?
ChartMill assigns a valuation rating of 4 / 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 27.25 and the Price/Book (PB) ratio is 3.35.
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%.