PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PH - US7010941042 - Common Stock
888.08 USD
+0.32 (+0.04%)
888.08 USD
0 (0%)
Overall PH gets a fundamental rating of 6 out of 10. We evaluated PH against 132 industry peers in the Machinery industry. PH scores excellent on profitability, but there are some minor concerns on its financial health. PH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PH had positive earnings in the past year.
In the past year PH had a positive cash flow from operations.
PH had positive earnings in each of the past 5 years.
In the past 5 years PH always reported a positive cash flow from operatings.
1.2 Ratios
PH has a Return On Assets of 11.87%. This is amongst the best in the industry. PH outperforms 84.85% of its industry peers.
PH has a Return On Equity of 26.43%. This is amongst the best in the industry. PH outperforms 93.94% of its industry peers.
PH's Return On Invested Capital of 14.75% is amongst the best of the industry. PH outperforms 87.12% of its industry peers.
PH had an Average Return On Invested Capital over the past 3 years of 12.83%. This is above the industry average of 10.27%.
The last Return On Invested Capital (14.75%) for PH is above the 3 year average (12.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROIC | 14.75% |
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's Profit Margin of 18.18% is amongst the best of the industry. PH outperforms 94.70% of its industry peers.
In the last couple of years the Profit Margin of PH has grown nicely.
PH has a better Operating Margin (21.31%) than 92.42% of its industry peers.
In the last couple of years the Operating Margin of PH has grown nicely.
The Gross Margin of PH (37.20%) is better than 68.94% of its industry peers.
In the last couple of years the Gross Margin of PH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% |
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
PH 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, PH has less shares outstanding
The number of shares outstanding for PH has been reduced compared to 5 years ago.
The debt/assets ratio for PH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.13 indicates that PH is not in any danger for bankruptcy at the moment.
PH has a Altman-Z score of 6.13. This is amongst the best in the industry. PH outperforms 84.85% of its industry peers.
PH has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as PH would need 3.05 years to pay back of all of its debts.
PH has a better Debt to FCF ratio (3.05) than 68.94% of its industry peers.
PH has a Debt/Equity ratio of 0.54. This is a neutral value indicating PH is somewhat dependend on debt financing.
PH's Debt to Equity ratio of 0.54 is in line compared to the rest of the industry. PH outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.13 |
ROIC/WACC1.59
WACC9.3%
2.3 Liquidity
PH has a Current Ratio of 1.07. This is a normal value and indicates that PH is financially healthy and should not expect problems in meeting its short term obligations.
PH has a Current ratio of 1.07. This is amonst the worse of the industry: PH underperforms 85.61% of its industry peers.
PH has a Quick Ratio of 1.07. This is a bad value and indicates that PH is not financially healthy enough and could expect problems in meeting its short term obligations.
PH has a worse Quick ratio (0.61) than 85.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
PH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.73%, which is quite good.
The Earnings Per Share has been growing by 20.50% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 0.22% in the past year.
PH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.70% yearly.
EPS 1Y (TTM)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
3.2 Future
Based on estimates for the next years, PH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.19% on average per year.
Based on estimates for the next years, PH will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
EPS Next Y14.02%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
EPS Next 5Y9.19%
Revenue Next Year6.86%
Revenue Next 2Y6.85%
Revenue Next 3Y6.46%
Revenue Next 5Y5.48%
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
A Price/Earnings ratio of 31.29 indicates a quite expensive valuation of PH.
Compared to the rest of the industry, the Price/Earnings ratio of PH is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PH to the average of the S&P500 Index (26.92), we can say PH is valued inline with the index average.
A Price/Forward Earnings ratio of 26.01 indicates a quite expensive valuation of PH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PH is on the same level as its industry peers.
PH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.29 | ||
| Fwd PE | 26.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than 65.91% of the companies in the same industry.
PH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.1 | ||
| EV/EBITDA | 23.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)1.53
EPS Next 2Y11.7%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
PH has a yearly dividend return of 0.81%, which is pretty low.
Compared to an average industry Dividend Yield of 0.98, PH pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.81, PH pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
The dividend of PH is nicely growing with an annual growth rate of 13.82%!
PH has been paying a dividend for at least 10 years, so it has a reliable track record.
PH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.82%
Div Incr Years8
Div Non Decr Years34
5.3 Sustainability
PH pays out 24.15% 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.
DP24.15%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
888.08
+0.32 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.92%
Inst Owner Change5.71%
Ins Owners0.14%
Ins Owner Change-1.22%
Market Cap112.07B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80.63
Price Target944.05 (6.3%)
Short Float %1.06%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP24.15%
Div Incr Years8
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.44%
Min EPS beat(2)5.1%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)3.23%
Min EPS beat(4)0.28%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)4.1%
EPS beat(12)11
Avg EPS beat(12)5.66%
EPS beat(16)15
Avg EPS beat(16)6.07%
Revenue beat(2)0
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)2
Avg Revenue beat(12)-1.4%
Revenue beat(16)4
Avg Revenue beat(16)-0.95%
PT rev (1m)3.76%
PT rev (3m)17.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.69%
EPS NY rev (1m)3.7%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.64%
Revenue NY rev (1m)1.85%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.29 | ||
| Fwd PE | 26.01 | ||
| P/S | 5.59 | ||
| P/FCF | 33.1 | ||
| P/OCF | 29.38 | ||
| P/B | 8.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.54 |
EPS(TTM)28.38
EY3.2%
EPS(NY)34.14
Fwd EY3.84%
FCF(TTM)26.83
FCFY3.02%
OCF(TTM)30.22
OCFY3.4%
SpS158.73
BVpS109.18
TBVpS-40.61
PEG (NY)2.23
PEG (5Y)1.53
Graham Number264.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROCE | 17.86% | ||
| ROIC | 14.75% | ||
| ROICexc | 15.05% | ||
| ROICexgc | 77.92% | ||
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% | ||
| FCFM | 16.9% |
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%
ROICexgc growth 3Y28.45%
ROICexgc 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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 47.11% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.64% | ||
| Profit Quality | 92.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 6.13 |
F-Score7
WACC9.3%
ROIC/WACC1.59
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)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
EPS Next Y14.02%
EPS Next 2Y11.7%
EPS Next 3Y10.88%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year6.86%
Revenue Next 2Y6.85%
Revenue Next 3Y6.46%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year24.49%
EBIT Next 3Y13.2%
EBIT Next 5Y8.49%
FCF growth 1Y21.88%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y20.22%
OCF growth 3Y15.64%
OCF growth 5Y12.77%
PARKER HANNIFIN CORP / PH FAQ
What is the fundamental rating for PH stock?
ChartMill assigns a fundamental rating of 6 / 10 to PH.
What is the valuation status of PARKER HANNIFIN CORP (PH) stock?
ChartMill assigns a valuation rating of 2 / 10 to PARKER HANNIFIN CORP (PH). This can be considered as Overvalued.
How profitable is PARKER HANNIFIN CORP (PH) stock?
PARKER HANNIFIN CORP (PH) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for PH stock?
The Price/Earnings (PE) ratio for PARKER HANNIFIN CORP (PH) is 31.29 and the Price/Book (PB) ratio is 8.13.
How sustainable is the dividend of PARKER HANNIFIN CORP (PH) stock?
The dividend rating of PARKER HANNIFIN CORP (PH) is 5 / 10 and the dividend payout ratio is 24.15%.