PACCAR INC (PCAR) Stock Fundamental Analysis
USA - NASDAQ:PCAR - US6937181088 - Common Stock
99.17 USD
-1.91 (-1.89%)
99.17 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PCAR. PCAR was compared to 130 industry peers in the Machinery industry. PCAR scores excellent on profitability, but there are some minor concerns on its financial health. PCAR has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
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 (6.09%) is better than 64.62% of its industry peers.
PCAR has a better Return On Equity (13.89%) than 72.31% of its industry peers.
PCAR has a Return On Invested Capital of 9.22%. This is in the better half of the industry: PCAR outperforms 65.38% 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%.
The 3 year average ROIC (13.42%) for PCAR is well above the current ROIC(9.22%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 13.89% | ||
| ROIC | 9.22% |
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 9.11%. This is in the better half of the industry: PCAR outperforms 68.46% of its industry peers.
In the last couple of years the Profit Margin of PCAR has grown nicely.
PCAR has a Operating Margin of 14.59%. This is in the better half of the industry: PCAR outperforms 69.23% of its industry peers.
In the last couple of years the Operating Margin of PCAR has grown nicely.
PCAR has a worse Gross Margin (20.67%) than 71.54% of its industry peers.
PCAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.59% | ||
| PM (TTM) | 9.11% | ||
| GM | 20.67% |
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.
The number of shares outstanding for PCAR has been increased compared to 5 years ago.
PCAR has a worse debt/assets ratio than last year.
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/WACC1.03
WACC8.98%
2.3 Liquidity
PCAR has a Current Ratio of 1.82. 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 (1.82) is worse than 60.77% of its industry peers.
A Quick Ratio of 1.51 indicates that PCAR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, PCAR is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
PCAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.91%.
The Earnings Per Share has been growing slightly by 2.86% on average over the past years.
The Revenue for PCAR has decreased by -15.22% 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)-42.91%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-39.46%
Revenue 1Y (TTM)-15.22%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-13.4%
3.2 Future
The Earnings Per Share is expected to grow by 6.49% on average over the next years.
Based on estimates for the next years, PCAR will show a small growth in Revenue. The Revenue will grow by 1.52% on average per year.
EPS Next Y-34.2%
EPS Next 2Y-11.31%
EPS Next 3Y-3.68%
EPS Next 5Y6.49%
Revenue Next Year-15.5%
Revenue Next 2Y-5.92%
Revenue Next 3Y-1.11%
Revenue Next 5Y1.52%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
PCAR is valuated rather expensively with a Price/Earnings ratio of 19.41.
PCAR's Price/Earnings ratio is a bit cheaper when compared to the industry. PCAR is cheaper than 67.69% 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 27.00.
With a Price/Forward Earnings ratio of 15.94, PCAR is valued correctly.
72.31% of the companies in the same industry are more expensive than PCAR, based on the Price/Forward Earnings ratio.
PCAR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 15.94 |
4.2 Price Multiples
86.15% of the companies in the same industry are more expensive than PCAR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PCAR is valued a bit cheaper than 77.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.3 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
PCAR has a very decent profitability rating, which may justify a higher PE ratio.
PCAR's earnings are expected to decrease with -3.68% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.79
EPS Next 2Y-11.31%
EPS Next 3Y-3.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, PCAR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.78, PCAR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, PCAR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of PCAR is nicely growing with an annual growth rate of 14.79%!
PCAR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)14.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PCAR pays out 83.66% of its income as dividend. 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.
DP83.66%
EPS Next 2Y-11.31%
EPS Next 3Y-3.68%
99.17
-1.91 (-1.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner Change0.76%
Ins Owners1.23%
Ins Owner Change3.87%
Market Cap52.07B
Revenue(TTM)29.53B
Net Income(TTM)2.69B
Analysts70.37
Price Target109.25 (10.16%)
Short Float %2.22%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend4.37
Dividend Growth(5Y)14.79%
DP83.66%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.9%
Min EPS beat(2)-5.82%
Max EPS beat(2)4.02%
EPS beat(4)1
Avg EPS beat(4)-11.55%
Min EPS beat(4)-40.48%
Max EPS beat(4)4.02%
EPS beat(8)3
Avg EPS beat(8)-3.58%
EPS beat(12)7
Avg EPS beat(12)1.94%
EPS beat(16)11
Avg EPS beat(16)3.94%
Revenue beat(2)2
Avg Revenue beat(2)3.45%
Min Revenue beat(2)2.16%
Max Revenue beat(2)4.73%
Revenue beat(4)4
Avg Revenue beat(4)2.57%
Min Revenue beat(4)1.69%
Max Revenue beat(4)4.73%
Revenue beat(8)7
Avg Revenue beat(8)2.87%
Revenue beat(12)11
Avg Revenue beat(12)4.14%
Revenue beat(16)15
Avg Revenue beat(16)5.53%
PT rev (1m)0%
PT rev (3m)3.29%
EPS NQ rev (1m)-3.16%
EPS NQ rev (3m)-7.55%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-10.29%
Revenue NQ rev (1m)-2.1%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 15.94 | ||
| P/S | 1.76 | ||
| P/FCF | 16.3 | ||
| P/OCF | 11.04 | ||
| P/B | 2.69 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)5.11
EY5.15%
EPS(NY)6.22
Fwd EY6.27%
FCF(TTM)6.08
FCFY6.13%
OCF(TTM)8.98
OCFY9.06%
SpS56.24
BVpS36.89
TBVpS36.89
PEG (NY)N/A
PEG (5Y)6.79
Graham Number65.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 13.89% | ||
| ROCE | 11.7% | ||
| ROIC | 9.22% | ||
| ROICexc | 12.23% | ||
| ROICexgc | 234.79% | ||
| OM | 14.59% | ||
| PM (TTM) | 9.11% | ||
| GM | 20.67% | ||
| FCFM | 10.82% |
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%
ROICexgc growth 3Y25.83%
ROICexgc 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-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 181.03% | ||
| Cap/Sales | 5.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.59% | ||
| Profit Quality | 118.7% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | N/A |
F-Score5
WACC8.98%
ROIC/WACC1.03
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)-42.91%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-39.46%
EPS Next Y-34.2%
EPS Next 2Y-11.31%
EPS Next 3Y-3.68%
EPS Next 5Y6.49%
Revenue 1Y (TTM)-15.22%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-13.4%
Revenue Next Year-15.5%
Revenue Next 2Y-5.92%
Revenue Next 3Y-1.11%
Revenue Next 5Y1.52%
EBIT growth 1Y-35.47%
EBIT growth 3Y31.59%
EBIT growth 5Y11.81%
EBIT Next Year-14.57%
EBIT Next 3Y1.4%
EBIT Next 5Y6.88%
FCF growth 1Y4.92%
FCF growth 3Y73.55%
FCF growth 5Y26.62%
OCF growth 1Y10.94%
OCF growth 3Y28.51%
OCF growth 5Y10.16%
PACCAR INC / PCAR FAQ
Can you provide the ChartMill fundamental rating for PACCAR INC?
ChartMill assigns a fundamental rating of 5 / 10 to PCAR.
Can you provide the valuation status for PACCAR INC?
ChartMill assigns a valuation rating of 5 / 10 to PACCAR INC (PCAR). This can be considered as Fairly Valued.
What is the profitability of PCAR stock?
PACCAR INC (PCAR) has a profitability rating of 7 / 10.
What is the earnings growth outlook for PACCAR INC?
The Earnings per Share (EPS) of PACCAR INC (PCAR) is expected to decline by -34.2% in the next year.
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 83.66%.