PARKER HANNIFIN CORP (PH) Fundamental Analysis & Valuation

NYSE:PH • US7010941042

Current stock price

921.56 USD
-3.02 (-0.33%)
At close:
921.56 USD
0 (0%)
After Hours:

This PH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. PH Profitability Analysis

1.1 Basic Checks

  • In the past year PH was profitable.
  • In the past year PH had a positive cash flow from operations.
  • In the past 5 years PH has always been profitable.
  • PH had a positive operating cash flow in each of the past 5 years.
PH Yearly Net Income VS EBIT VS OCF VS FCFPH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 11.59%, PH belongs to the top of the industry, outperforming 87.79% of the companies in the same industry.
  • PH has a Return On Equity of 24.72%. This is amongst the best in the industry. PH outperforms 93.13% of its industry peers.
  • PH's Return On Invested Capital of 14.92% is amongst the best of the industry. PH outperforms 90.08% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for PH is above the industry average of 10.17%.
  • The last Return On Invested Capital (14.92%) for PH is above the 3 year average (12.83%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.59%
ROE 24.72%
ROIC 14.92%
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)12.83%
ROIC(5y)12.22%
PH Yearly ROA, ROE, ROICPH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • PH's Profit Margin of 17.29% is amongst the best of the industry. PH outperforms 93.13% of its industry peers.
  • In the last couple of years the Profit Margin of PH has grown nicely.
  • PH's Operating Margin of 21.56% is amongst the best of the industry. PH outperforms 93.89% of its industry peers.
  • PH's Operating Margin has improved in the last couple of years.
  • The Gross Margin of PH (37.43%) is better than 70.23% of its industry peers.
  • PH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 21.56%
PM (TTM) 17.29%
GM 37.43%
OM growth 3Y5.19%
OM growth 5Y10.03%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.36%
GM growth 5Y7.88%
PH Yearly Profit, Operating, Gross MarginsPH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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5

2. PH Health Analysis

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
  • Compared to 5 years ago, PH has less shares outstanding
  • Compared to 1 year ago, PH has an improved debt to assets ratio.
PH Yearly Shares OutstandingPH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
PH Yearly Total Debt VS Total AssetsPH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • PH has an Altman-Z score of 6.57. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
  • PH has a Altman-Z score of 6.57. This is amongst the best in the industry. PH outperforms 83.97% of its industry peers.
  • PH has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as PH would need 2.96 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 2.96, PH is doing good in the industry, outperforming 71.76% of the companies in the same industry.
  • PH has a Debt/Equity ratio of 0.52. This is a neutral value indicating PH is somewhat dependend on debt financing.
  • PH has a Debt to Equity ratio (0.52) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 2.96
Altman-Z 6.57
ROIC/WACC1.5
WACC9.97%
PH Yearly LT Debt VS Equity VS FCFPH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.18 indicates that PH should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.18, PH is not doing good in the industry: 83.21% of the companies in the same industry are doing better.
  • PH has a Quick Ratio of 1.18. This is a bad value and indicates that PH is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.66, PH is not doing good in the industry: 83.21% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 0.66
PH Yearly Current Assets VS Current LiabilitesPH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. PH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 13.42% over the past year.
  • PH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.50% yearly.
  • Looking at the last year, PH shows a small growth in Revenue. The Revenue has grown by 2.78% in the last 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)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%9.1%

3.2 Future

  • PH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.34% yearly.
  • The Revenue is expected to grow by 5.55% on average over the next years.
EPS Next Y16.52%
EPS Next 2Y13.18%
EPS Next 3Y12%
EPS Next 5Y10.34%
Revenue Next Year7.82%
Revenue Next 2Y7.63%
Revenue Next 3Y6.93%
Revenue Next 5Y5.55%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PH Yearly Revenue VS EstimatesPH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
PH Yearly EPS VS EstimatesPH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30 40

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2

4. PH Valuation Analysis

4.1 Price/Earnings Ratio

  • PH is valuated quite expensively with a Price/Earnings ratio of 31.24.
  • The rest of the industry has a similar Price/Earnings ratio as PH.
  • Compared to an average S&P500 Price/Earnings ratio of 25.61, PH is valued a bit more expensive.
  • A Price/Forward Earnings ratio of 26.29 indicates a quite expensive valuation of PH.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PH.
  • PH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 31.24
Fwd PE 26.29
PH Price Earnings VS Forward Price EarningsPH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • PH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PH is more expensive than 67.94% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of PH is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 34.83
EV/EBITDA 23.67
PH Per share dataPH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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)1.89
PEG (5Y)1.52
EPS Next 2Y13.18%
EPS Next 3Y12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. PH Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.80%, PH is not a good candidate for dividend investing.
  • PH's Dividend Yield is comparable with the industry average which is at 1.22.
  • Compared to an average S&P500 Dividend Yield of 1.89, PH's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.8%

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
PH Yearly Dividends per sharePH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • 25.36% of the earnings are spent on dividend by PH. This is a low number and sustainable payout ratio.
  • The dividend of PH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.36%
EPS Next 2Y13.18%
EPS Next 3Y12%
PH Yearly Income VS Free CF VS DividendPH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
PH Dividend Payout.PH Dividend Payout, showing the Payout Ratio.PH Dividend Payout.PayoutRetained Earnings

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PH Fundamentals: All Metrics, Ratios and Statistics

PARKER HANNIFIN CORP

NYSE:PH (3/25/2026, 8:04:00 PM)

After market: 921.56 0 (0%)

921.56

-3.02 (-0.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29
Earnings (Next)04-29
Inst Owners90.3%
Inst Owner Change0.57%
Ins Owners0.14%
Ins Owner Change-0.23%
Market Cap116.32B
Revenue(TTM)20.46B
Net Income(TTM)3.54B
Analysts80
Price Target1040.13 (12.87%)
Short Float %1.3%
Short Ratio2.29
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP25.36%
Div Incr Years8
Div Non Decr Years34
Ex-Date02-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.68%
Min EPS beat(2)3.57%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)3.69%
Min EPS beat(4)0.28%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)2.87%
EPS beat(12)11
Avg EPS beat(12)5.66%
EPS beat(16)15
Avg EPS beat(16)5.62%
Revenue beat(2)0
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-0.86%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-1.93%
Revenue beat(12)1
Avg Revenue beat(12)-1.65%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)1.03%
PT rev (3m)10.18%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)0.15%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.9%
Valuation
Industry RankSector Rank
PE 31.24
Fwd PE 26.29
P/S 5.68
P/FCF 34.83
P/OCF 31.09
P/B 8.13
P/tB N/A
EV/EBITDA 23.67
EPS(TTM)29.5
EY3.2%
EPS(NY)35.05
Fwd EY3.8%
FCF(TTM)26.46
FCFY2.87%
OCF(TTM)29.64
OCFY3.22%
SpS162.11
BVpS113.38
TBVpS-35.24
PEG (NY)1.89
PEG (5Y)1.52
Graham Number274.33
Profitability
Industry RankSector Rank
ROA 11.59%
ROE 24.72%
ROCE 18.06%
ROIC 14.92%
ROICexc 15.18%
ROICexgc 69.54%
OM 21.56%
PM (TTM) 17.29%
GM 37.43%
FCFM 16.32%
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 Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 2.96
Debt/EBITDA 1.4
Cap/Depr 43.78%
Cap/Sales 1.96%
Interest Coverage 250
Cash Conversion 70.2%
Profit Quality 94.42%
Current Ratio 1.18
Quick Ratio 0.66
Altman-Z 6.57
F-Score7
WACC9.97%
ROIC/WACC1.5
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)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
EPS Next Y16.52%
EPS Next 2Y13.18%
EPS Next 3Y12%
EPS Next 5Y10.34%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%9.1%
Revenue Next Year7.82%
Revenue Next 2Y7.63%
Revenue Next 3Y6.93%
Revenue Next 5Y5.55%
EBIT growth 1Y9.29%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year26.92%
EBIT Next 3Y14.15%
EBIT Next 5Y9.05%
FCF growth 1Y16.91%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y14.91%
OCF growth 3Y15.64%
OCF growth 5Y12.77%

PARKER HANNIFIN CORP / PH Fundamental Analysis FAQ

What is the fundamental rating for PH stock?

ChartMill assigns a fundamental rating of 6 / 10 to PH.


What is the valuation status for 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.


How financially healthy is PARKER HANNIFIN CORP?

The financial health rating of PARKER HANNIFIN CORP (PH) is 5 / 10.


Can you provide the expected EPS growth for PH stock?

The Earnings per Share (EPS) of PARKER HANNIFIN CORP (PH) is expected to grow by 16.52% in the next year.