PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
NYSE:PH - US7010941042 - Common Stock
759.35 USD
-7.49 (-0.98%)
759.35 USD
0 (0%)
Overall PH gets a fundamental rating of 5 out of 10. We evaluated PH against 128 industry peers in the Machinery industry. While PH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PH does not seem to be growing, but still is valued expensively.
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.
In the past 5 years PH always reported a positive cash flow from operatings.
1.2 Ratios
PH has a Return On Assets of 11.97%. This is amongst the best in the industry. PH outperforms 88.28% of its industry peers.
PH has a better Return On Equity (25.81%) than 92.19% of its industry peers.
PH's Return On Invested Capital of 14.37% is amongst the best of the industry. PH outperforms 85.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PH is above the industry average of 9.99%.
The last Return On Invested Capital (14.37%) for PH is above the 3 year average (13.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROIC | 14.37% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)13.03%
ROIC(5y)12.34%
1.3 Margins
Looking at the Profit Margin, with a value of 17.79%, PH belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
In the last couple of years the Profit Margin of PH has grown nicely.
With an excellent Operating Margin value of 20.75%, PH belongs to the best of the industry, outperforming 91.41% of the companies in the same industry.
PH's Operating Margin has improved in the last couple of years.
PH has a Gross Margin of 36.96%. This is in the better half of the industry: PH outperforms 67.97% of its industry peers.
PH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.75% | ||
| PM (TTM) | 17.79% | ||
| GM | 36.96% |
OM growth 3Y4.16%
OM growth 5Y9.38%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.21%
GM growth 5Y7.79%
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.
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
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.
PH has a better Debt to FCF ratio (2.78) than 69.53% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that PH is somewhat dependend on debt financing.
PH's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. PH outperforms 42.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.4
WACC10.24%
2.3 Liquidity
A Current Ratio of 1.19 indicates that PH should not have too much problems paying its short term obligations.
The Current ratio of PH (1.19) is worse than 85.16% of its industry peers.
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.
With a Quick ratio value of 0.71, PH is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
| 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%.
Measured over the past years, PH shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.50% on average per year.
The Revenue has decreased by -0.40% 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)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
Based on estimates for the next years, PH will show a small growth in Earnings Per Share. The EPS will grow by 7.66% on average per year.
Based on estimates for the next years, PH will show a small growth in Revenue. The Revenue will grow by 5.17% on average per year.
EPS Next Y9.81%
EPS Next 2Y9.5%
EPS Next 3Y8.86%
EPS Next 5Y7.66%
Revenue Next Year4.51%
Revenue Next 2Y4.98%
Revenue Next 3Y5.06%
Revenue Next 5Y5.17%
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 decreasing.
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
Based on the Price/Earnings ratio of 27.75, the valuation of PH can be described as expensive.
PH's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PH to the average of the S&P500 Index (27.13), we can say PH is valued inline with the index average.
A Price/Forward Earnings ratio of 25.27 indicates a quite expensive valuation of PH.
Based on the Price/Forward Earnings ratio, PH is valued a bit more expensive than the industry average as 60.16% of the companies are valued more cheaply.
PH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 25.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than the industry average as 64.84% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as PH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.79 | ||
| EV/EBITDA | 20.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PH does not grow enough to justify the current Price/Earnings ratio.
PH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)1.35
EPS Next 2Y9.5%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, PH is not a good candidate for dividend investing.
PH's Dividend Yield is a higher than the industry average which is at 1.78.
With a Dividend Yield of 0.94, PH pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of PH grows each year by 13.72%, which is quite nice.
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)13.72%
Div Incr Years8
Div Non Decr Years34
5.3 Sustainability
24.39% 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.
DP24.39%
EPS Next 2Y9.5%
EPS Next 3Y8.86%
759.35
-7.49 (-0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.31%
Inst Owner Change-5.25%
Ins Owners0.16%
Ins Owner Change1.83%
Market Cap96.19B
Analysts80.63
Price Target798.02 (5.09%)
Short Float %1.2%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend6.72
Dividend Growth(5Y)13.72%
DP24.39%
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)5.94%
PT rev (3m)11%
EPS NQ rev (1m)-4.04%
EPS NQ rev (3m)-5.13%
EPS NY rev (1m)0.98%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 25.27 | ||
| P/S | 4.85 | ||
| P/FCF | 28.79 | ||
| P/OCF | 25.48 | ||
| P/B | 7.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.89 |
EPS(TTM)27.36
EY3.6%
EPS(NY)30.04
Fwd EY3.96%
FCF(TTM)26.37
FCFY3.47%
OCF(TTM)29.81
OCFY3.93%
SpS156.69
BVpS108
TBVpS-34.62
PEG (NY)2.83
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROCE | 17.4% | ||
| ROIC | 14.37% | ||
| ROICexc | 14.65% | ||
| ROICexgc | 66.17% | ||
| OM | 20.75% | ||
| PM (TTM) | 17.79% | ||
| GM | 36.96% | ||
| FCFM | 16.83% |
ROA(3y)9.54%
ROA(5y)8.46%
ROE(3y)23.18%
ROE(5y)21.04%
ROIC(3y)13.03%
ROIC(5y)12.34%
ROICexc(3y)13.28%
ROICexc(5y)12.66%
ROICexgc(3y)62.44%
ROICexgc(5y)50.33%
ROCE(3y)16.68%
ROCE(5y)15.67%
ROICexcg growth 3Y40.44%
ROICexcg growth 5Y12.95%
ROICexc growth 3Y8.47%
ROICexc growth 5Y9.14%
OM growth 3Y4.16%
OM growth 5Y9.38%
PM growth 3Y28.96%
PM growth 5Y15.1%
GM growth 3Y3.21%
GM growth 5Y7.79%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.13% | ||
| Profit Quality | 94.62% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | N/A |
F-Score7
WACC10.24%
ROIC/WACC1.4
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 Y9.81%
EPS Next 2Y9.5%
EPS Next 3Y8.86%
EPS Next 5Y7.66%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
Revenue Next Year4.51%
Revenue Next 2Y4.98%
Revenue Next 3Y5.06%
Revenue Next 5Y5.17%
EBIT growth 1Y4.13%
EBIT growth 3Y12.25%
EBIT growth 5Y17.81%
EBIT Next Year18.88%
EBIT Next 3Y10.13%
EBIT Next 5Y8.67%
FCF growth 1Y11.96%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y11.57%
OCF growth 3Y15.64%
OCF growth 5Y12.77%