PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - NYSE:PH - US7010941042 - Common Stock
731.955 USD
-4.52 (-0.61%)
Taking everything into account, PH scores 6 out of 10 in our fundamental rating. PH was compared to 129 industry peers in the Machinery industry. PH has an excellent profitability rating, but there are some minor concerns on its financial health. PH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PH had positive earnings in the past year.
PH had a positive operating cash flow in the past year.
PH had positive earnings in each of the past 5 years.
PH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PH (11.97%) is better than 88.37% of its industry peers.
PH has a better Return On Equity (25.81%) than 93.80% of its industry peers.
The Return On Invested Capital of PH (14.58%) is better than 86.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PH is above the industry average of 10.01%.
The 3 year average ROIC (12.83%) for PH is below the current ROIC(14.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROIC | 14.58% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
1.3 Margins
PH has a Profit Margin of 17.79%. This is amongst the best in the industry. PH outperforms 95.35% of its industry peers.
PH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.06%, PH belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
In the last couple of years the Operating Margin of PH has grown nicely.
PH has a better Gross Margin (37.01%) than 67.44% of its industry peers.
PH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% |
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PH is creating some value.
PH has less shares outstanding than it did 1 year ago.
PH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PH has been reduced compared to a year ago.
2.2 Solvency
PH has an Altman-Z score of 5.76. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.76, PH belongs to the best of the industry, outperforming 82.95% of the companies in the same industry.
The Debt to FCF ratio of PH is 2.78, which is a good value as it means it would take PH, 2.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PH (2.78) is better than 72.09% of its industry peers.
PH has a Debt/Equity ratio of 0.55. This is a neutral value indicating PH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, PH is in line with its industry, outperforming 42.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 5.76 |
ROIC/WACC1.57
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.19 indicates that PH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.19, PH is doing worse than 85.27% of the companies in the same industry.
PH has a Quick Ratio of 1.19. This is a bad value and indicates that PH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.71, PH is doing worse than 85.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
PH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.76%.
PH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.50% yearly.
The Revenue has decreased by -0.40% in the past year.
Measured over the past years, PH shows a small growth in Revenue. The Revenue has been growing by 7.70% on average per year.
EPS 1Y (TTM)7.76%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%13.59%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
3.2 Future
The Earnings Per Share is expected to grow by 8.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.19% on average over the next years.
EPS Next Y9.88%
EPS Next 2Y9.56%
EPS Next 3Y8.95%
EPS Next 5Y8.57%
Revenue Next Year4.63%
Revenue Next 2Y5.03%
Revenue Next 3Y5.17%
Revenue Next 5Y5.19%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
PH is valuated quite expensively with a Price/Earnings ratio of 26.75.
PH's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PH to the average of the S&P500 Index (27.49), we can say PH is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.35, PH is valued on the expensive side.
PH's Price/Forward Earnings is on the same level as the industry average.
PH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.75 | ||
| Fwd PE | 24.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than 62.02% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.72 | ||
| EV/EBITDA | 20.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PH may justify a higher PE ratio.
PEG (NY)2.71
PEG (5Y)1.31
EPS Next 2Y9.56%
EPS Next 3Y8.95%
5. Dividend
5.1 Amount
PH has a yearly dividend return of 0.97%, which is pretty low.
Compared to an average industry Dividend Yield of 1.81, PH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
On average, the dividend of PH grows each year by 13.82%, which is quite nice.
PH has paid a dividend for at least 10 years, which is a reliable track record.
PH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.82%
Div Incr Years8
Div Non Decr Years34
5.3 Sustainability
PH pays out 24.38% of its income as dividend. This is a sustainable payout ratio.
PH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.38%
EPS Next 2Y9.56%
EPS Next 3Y8.95%
NYSE:PH (10/15/2025, 1:36:08 PM)
731.955
-4.52 (-0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change-0.23%
Ins Owners0.15%
Ins Owner Change1.74%
Market Cap92.62B
Analysts80
Price Target804.19 (9.87%)
Short Float %1.23%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP24.38%
Div Incr Years8
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.69%
Min EPS beat(2)0.28%
Max EPS beat(2)5.1%
EPS beat(4)3
Avg EPS beat(4)1.29%
Min EPS beat(4)-1.98%
Max EPS beat(4)5.1%
EPS beat(8)7
Avg EPS beat(8)4.49%
EPS beat(12)11
Avg EPS beat(12)6.05%
EPS beat(16)15
Avg EPS beat(16)6.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)-0.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.44%
Revenue beat(8)0
Avg Revenue beat(8)-2.59%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)0.29%
PT rev (3m)10.49%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-3.6%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.75 | ||
| Fwd PE | 24.35 | ||
| P/S | 4.67 | ||
| P/FCF | 27.72 | ||
| P/OCF | 24.53 | ||
| P/B | 6.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.05 |
EPS(TTM)27.36
EY3.74%
EPS(NY)30.06
Fwd EY4.11%
FCF(TTM)26.4
FCFY3.61%
OCF(TTM)29.84
OCFY4.08%
SpS156.87
BVpS108.12
TBVpS-34.66
PEG (NY)2.71
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROCE | 17.66% | ||
| ROIC | 14.58% | ||
| ROICexc | 14.88% | ||
| ROICexgc | 67.17% | ||
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% | ||
| FCFM | 16.83% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
ROICexc(3y)13.07%
ROICexc(5y)12.53%
ROICexgc(3y)57.33%
ROICexgc(5y)47.27%
ROCE(3y)16.85%
ROCE(5y)15.77%
ROICexcg growth 3Y28.45%
ROICexcg growth 5Y7.06%
ROICexc growth 3Y6.87%
ROICexc growth 5Y8.17%
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 10.89 | ||
| Cash Conversion | 74.21% | ||
| Profit Quality | 94.62% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 5.76 |
F-Score7
WACC9.3%
ROIC/WACC1.57
Cap/Depr(3y)45.89%
Cap/Depr(5y)42.63%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.82%
Profit Quality(3y)108.11%
Profit Quality(5y)125.58%
High Growth Momentum
Growth
EPS 1Y (TTM)7.76%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%13.59%
EPS Next Y9.88%
EPS Next 2Y9.56%
EPS Next 3Y8.95%
EPS Next 5Y8.57%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
Revenue Next Year4.63%
Revenue Next 2Y5.03%
Revenue Next 3Y5.17%
Revenue Next 5Y5.19%
EBIT growth 1Y5.71%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y10.52%
EBIT Next 5Y9.14%
FCF growth 1Y11.96%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y11.57%
OCF growth 3Y15.64%
OCF growth 5Y12.77%