PACCAR INC (PCAR) Stock Fundamental Analysis
NASDAQ:PCAR - US6937181088 - Common Stock
101.5 USD
+3.96 (+4.06%)
100.76 USD
-0.74 (-0.73%)
Taking everything into account, PCAR scores 5 out of 10 in our fundamental rating. PCAR was compared to 127 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 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.
Each year in the past 5 years PCAR has been profitable.
Each year in the past 5 years PCAR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PCAR (6.97%) is better than 66.14% of its industry peers.
PCAR's Return On Equity of 16.22% is fine compared to the rest of the industry. PCAR outperforms 74.80% of its industry peers.
PCAR has a Return On Invested Capital of 9.62%. This is in the better half of the industry: PCAR outperforms 69.29% 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 10.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 16.22% | ||
| ROIC | 9.62% |
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
Looking at the Profit Margin, with a value of 9.88%, PCAR is in the better half of the industry, outperforming 68.50% of the companies in the same industry.
In the last couple of years the Profit Margin of PCAR has grown nicely.
Looking at the Operating Margin, with a value of 14.86%, PCAR is in the better half of the industry, outperforming 68.50% of the companies in the same industry.
PCAR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 21.19%, PCAR is not doing good in the industry: 70.87% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of PCAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.86% | ||
| PM (TTM) | 9.88% | ||
| GM | 21.19% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PCAR 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.
Compared to 1 year ago, PCAR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.97 indicates that PCAR is not a great score, but indicates only limited risk for bankruptcy at the moment.
PCAR has a Altman-Z score (2.97) which is in line with its industry peers.
PCAR has a debt to FCF ratio of 5.53. This is a neutral value as PCAR would need 5.53 years to pay back of all of its debts.
PCAR's Debt to FCF ratio of 5.53 is in line compared to the rest of the industry. PCAR outperforms 45.67% of its industry peers.
PCAR has a Debt/Equity ratio of 0.84. This is a neutral value indicating PCAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, PCAR is doing worse than 76.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.53 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.02
WACC9.43%
2.3 Liquidity
PCAR has a Current Ratio of 1.64. 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 (1.64) is worse than 67.72% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for PCAR have decreased strongly by -38.14% 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -11.87%.
PCAR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.63% yearly.
EPS 1Y (TTM)-38.14%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-35.68%
Revenue 1Y (TTM)-11.87%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-14.38%
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 3.78% on average per year.
PCAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
EPS Next Y-26.65%
EPS Next 2Y-5.83%
EPS Next 3Y-3.6%
EPS Next 5Y3.78%
Revenue Next Year-13.62%
Revenue Next 2Y-3.64%
Revenue Next 3Y-0.94%
Revenue Next 5Y1.77%
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 rather expensively with a Price/Earnings ratio of 17.38.
Based on the Price/Earnings ratio, PCAR is valued a bit cheaper than the industry average as 78.74% of the companies are valued more expensively.
PCAR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
With a Price/Forward Earnings ratio of 14.47, PCAR is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PCAR indicates a somewhat cheap valuation: PCAR is cheaper than 76.38% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PCAR to the average of the S&P500 Index (35.82), we can say PCAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 14.47 |
4.2 Price Multiples
PCAR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PCAR is cheaper than 70.87% 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 71.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.51 | ||
| EV/EBITDA | 11.23 |
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 -3.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.08
EPS Next 2Y-5.83%
EPS Next 3Y-3.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, PCAR has a reasonable but not impressive dividend return.
PCAR's Dividend Yield is a higher than the industry average which is at 1.86.
With a Dividend Yield of 1.32, PCAR pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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
72.73% of the earnings are spent on dividend by PCAR. 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.
DP72.73%
EPS Next 2Y-5.83%
EPS Next 3Y-3.6%
101.5
+3.96 (+4.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.34%
Inst Owner Change-3.45%
Ins Owners1.24%
Ins Owner Change4.04%
Market Cap53.30B
Analysts70.37
Price Target106.26 (4.69%)
Short Float %2.56%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend4.37
Dividend Growth(5Y)14.79%
DP72.73%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.23%
Min EPS beat(2)-40.48%
Max EPS beat(2)4.02%
EPS beat(4)1
Avg EPS beat(4)-10.17%
Min EPS beat(4)-40.48%
Max EPS beat(4)4.02%
EPS beat(8)4
Avg EPS beat(8)-1.85%
EPS beat(12)8
Avg EPS beat(12)3.19%
EPS beat(16)11
Avg EPS beat(16)3.56%
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)1.7%
Max Revenue beat(2)4.73%
Revenue beat(4)3
Avg Revenue beat(4)1.71%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)4.73%
Revenue beat(8)7
Avg Revenue beat(8)3.4%
Revenue beat(12)11
Avg Revenue beat(12)4.31%
Revenue beat(16)15
Avg Revenue beat(16)5.81%
PT rev (1m)3.56%
PT rev (3m)2%
EPS NQ rev (1m)-11.92%
EPS NQ rev (3m)-38.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)-8.88%
Revenue NQ rev (3m)-21.94%
Revenue NY rev (1m)-0.93%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 14.47 | ||
| P/S | 1.71 | ||
| P/FCF | 18.51 | ||
| P/OCF | 11.91 | ||
| P/B | 2.81 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 11.23 |
EPS(TTM)5.84
EY5.75%
EPS(NY)7.01
Fwd EY6.91%
FCF(TTM)5.48
FCFY5.4%
OCF(TTM)8.52
OCFY8.4%
SpS59.23
BVpS36.07
TBVpS36.07
PEG (NY)N/A
PEG (5Y)6.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 16.22% | ||
| ROCE | 12.21% | ||
| ROIC | 9.62% | ||
| ROICexc | 11.27% | ||
| ROICexgc | 13.07% | ||
| OM | 14.86% | ||
| PM (TTM) | 9.88% | ||
| GM | 21.19% | ||
| FCFM | 9.26% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.53 | ||
| Debt/EBITDA | 2.91 | ||
| Cap/Depr | 185.03% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.61% | ||
| Profit Quality | 93.72% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 2.97 |
F-Score4
WACC9.43%
ROIC/WACC1.02
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)-38.14%
EPS 3Y21.05%
EPS 5Y2.86%
EPS Q2Q%-35.68%
EPS Next Y-26.65%
EPS Next 2Y-5.83%
EPS Next 3Y-3.6%
EPS Next 5Y3.78%
Revenue 1Y (TTM)-11.87%
Revenue growth 3Y12.69%
Revenue growth 5Y5.63%
Sales Q2Q%-14.38%
Revenue Next Year-13.62%
Revenue Next 2Y-3.64%
Revenue Next 3Y-0.94%
Revenue Next 5Y1.77%
EBIT growth 1Y-33.94%
EBIT growth 3Y31.59%
EBIT growth 5Y11.81%
EBIT Next Year-14.57%
EBIT Next 3Y1.4%
EBIT Next 5Y6.88%
FCF growth 1Y21.25%
FCF growth 3Y73.55%
FCF growth 5Y26.62%
OCF growth 1Y24.68%
OCF growth 3Y28.51%
OCF growth 5Y10.16%