PACCAR INC (PCAR) Stock Fundamental Analysis
NASDAQ:PCAR - Nasdaq - US6937181088 - Common Stock - Currency: USD
Taking everything into account, PCAR scores 4 out of 10 in our fundamental rating. PCAR was compared to 128 industry peers in the Machinery industry. While PCAR belongs to the best of the industry regarding profitability, 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.
In the past year PCAR had a positive cash flow from operations.
PCAR had positive earnings in each of the past 5 years.
PCAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PCAR (8.13%) is better than 74.22% of its industry peers.
PCAR's Return On Equity of 19.26% is amongst the best of the industry. PCAR outperforms 82.03% 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 73.44% 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 10.31%.
| 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
PCAR has a Profit Margin of 10.73%. This is in the better half of the industry: PCAR outperforms 74.22% of its industry peers.
In the last couple of years the Profit Margin of PCAR has grown nicely.
The Operating Margin of PCAR (15.75%) is better than 76.56% 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 69.53% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PCAR is still creating some value.
Compared to 1 year ago, PCAR has more shares outstanding
PCAR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PCAR has a worse debt to assets ratio.
2.2 Solvency
PCAR has an Altman-Z score of 3.09. This indicates that PCAR is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.09, PCAR perfoms like the industry average, outperforming 50.00% of the companies in the same 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's Debt to FCF ratio of 6.63 is in line compared to the rest of the industry. PCAR outperforms 46.88% of its industry peers.
PCAR has a Debt/Equity ratio of 0.87. This is a neutral value indicating PCAR is somewhat dependend on debt financing.
PCAR has a worse Debt to Equity ratio (0.87) than 74.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.63 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.11
WACC9.88%
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's Current ratio of 1.62 is on the low side compared to the rest of the industry. PCAR is outperformed by 68.75% of its industry peers.
A Quick Ratio of 1.24 indicates that PCAR should not have too much problems paying its short term obligations.
The Quick ratio of PCAR (1.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
PCAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.54%.
The Earnings Per Share has been growing slightly by 2.86% on average over the past years.
Looking at the last year, PCAR shows a decrease in Revenue. The Revenue has decreased by -8.58% in the last year.
PCAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.63% yearly.
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 1.27% on average per year.
PCAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.02% yearly.
EPS Next Y-24.73%
EPS Next 2Y-4.67%
EPS Next 3Y-3.19%
EPS Next 5Y1.27%
Revenue Next Year-12.64%
Revenue Next 2Y-2.14%
Revenue Next 3Y-1.31%
Revenue Next 5Y2.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 14.62, the valuation of PCAR can be described as correct.
Based on the Price/Earnings ratio, PCAR is valued cheaper than 82.03% of the companies in the same industry.
PCAR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.42 indicates a correct valuation of PCAR.
Based on the Price/Forward Earnings ratio, PCAR is valued a bit cheaper than the industry average as 76.56% of the companies are valued more expensively.
PCAR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 13.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCAR indicates a somewhat cheap valuation: PCAR is cheaper than 78.13% of the companies listed in the same industry.
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 | 21.44 | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
PCAR has a very decent profitability rating, which 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)5.11
EPS Next 2Y-4.67%
EPS Next 3Y-3.19%
5. Dividend
5.1 Amount
PCAR has a Yearly Dividend Yield of 1.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.83, PCAR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.38, PCAR pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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.
PCAR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)14.79%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
63.91% of the earnings are spent on dividend by PCAR. 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-4.67%
EPS Next 3Y-3.19%
96.5
-0.51 (-0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners73.58%
Inst Owner Change2.14%
Ins Owners1.21%
Ins Owner Change4.7%
Market Cap50.66B
Analysts66.67
Price Target104.17 (7.95%)
Short Float %2.68%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend4.37
Dividend Growth(5Y)14.79%
DP63.91%
Div Incr Years3
Div Non Decr Years3
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)-8.65%
PT rev (3m)-12.7%
EPS NQ rev (1m)-18.14%
EPS NQ rev (3m)-21.77%
EPS NY rev (1m)-14.86%
EPS NY rev (3m)-23.15%
Revenue NQ rev (1m)-7.41%
Revenue NQ rev (3m)-11.51%
Revenue NY rev (1m)-6.61%
Revenue NY rev (3m)-11.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 13.42 | ||
| P/S | 1.57 | ||
| P/FCF | 21.44 | ||
| P/OCF | 12.41 | ||
| P/B | 2.81 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 9.77 |
EPS(TTM)6.6
EY6.84%
EPS(NY)7.19
Fwd EY7.45%
FCF(TTM)4.5
FCFY4.66%
OCF(TTM)7.78
OCFY8.06%
SpS61.64
BVpS34.33
TBVpS34.33
PEG (NY)N/A
PEG (5Y)5.11
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 | 3.09 |
F-Score4
WACC9.88%
ROIC/WACC1.11
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-24.73%
EPS Next 2Y-4.67%
EPS Next 3Y-3.19%
EPS Next 5Y1.27%
Revenue 1Y (TTM)-8.58%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-14.9%
Revenue Next Year-12.64%
Revenue Next 2Y-2.14%
Revenue Next 3Y-1.31%
Revenue Next 5Y2.02%
EBIT growth 1Y-28.07%
EBIT growth 3Y31.59%
EBIT growth 5Y11.81%
EBIT Next Year-2.81%
EBIT Next 3Y2.25%
EBIT Next 5Y-2.71%
FCF growth 1Y21.86%
FCF growth 3Y73.55%
FCF growth 5Y26.62%
OCF growth 1Y25.51%
OCF growth 3Y28.51%
OCF growth 5Y10.16%