PARKER HANNIFIN CORP (PH)

US7010941042 - Common Stock

537.8  +2.35 (+0.44%)

After market: 537.8 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to PH. PH was compared to 133 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.



9

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.
In the past 5 years PH has always been profitable.
PH had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of 8.87%, PH is doing good in the industry, outperforming 72.52% of the companies in the same industry.
With an excellent Return On Equity value of 23.29%, PH belongs to the best of the industry, outperforming 86.26% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.56%, PH belongs to the top of the industry, outperforming 81.68% of the companies in the same industry.
PH had an Average Return On Invested Capital over the past 3 years of 10.93%. This is in line with the industry average of 10.60%.
The last Return On Invested Capital (13.56%) for PH is above the 3 year average (10.93%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.87%
ROE 23.29%
ROIC 13.56%
ROA(3y)6.87%
ROA(5y)7.06%
ROE(3y)18.61%
ROE(5y)20.18%
ROIC(3y)10.93%
ROIC(5y)10.56%

1.3 Margins

Looking at the Profit Margin, with a value of 13.28%, PH belongs to the top of the industry, outperforming 86.26% of the companies in the same industry.
PH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.06%, PH belongs to the top of the industry, outperforming 89.31% of the companies in the same industry.
PH's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 35.55%, PH is doing good in the industry, outperforming 67.94% of the companies in the same industry.
PH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 19.06%
PM (TTM) 13.28%
GM 35.55%
OM growth 3Y9.97%
OM growth 5Y3.36%
PM growth 3Y7.46%
PM growth 5Y8.05%
GM growth 3Y10.11%
GM growth 5Y6.17%

4

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.
The number of shares outstanding for PH remains at a similar level compared to 1 year ago.
The number of shares outstanding for PH has been reduced compared to 5 years ago.
PH has a better debt/assets ratio than last year.

2.2 Solvency

PH has an Altman-Z score of 4.16. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.16, PH is doing good in the industry, outperforming 72.52% of the companies in the same industry.
The Debt to FCF ratio of PH is 4.13, which is a neutral value as it means it would take PH, 4.13 years of fcf income to pay off all of its debts.
PH's Debt to FCF ratio of 4.13 is in line compared to the rest of the industry. PH outperforms 59.54% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that PH is somewhat dependend on debt financing.
PH's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. PH is outperformed by 70.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.13
Altman-Z 4.16
ROIC/WACC1.6
WACC8.45%

2.3 Liquidity

A Current Ratio of 0.90 indicates that PH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.90, PH is doing worse than 93.89% of the companies in the same industry.
PH has a Quick Ratio of 0.90. 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 0.49, PH is not doing good in the industry: 92.37% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.9
Quick Ratio 0.49

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 23.76% over the past year.
PH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.89% yearly.
The Revenue has grown by 15.39% in the past year. This is quite good.
PH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.92% yearly.
EPS 1Y (TTM)23.76%
EPS 3Y25.93%
EPS 5Y15.89%
EPS growth Q2Q29.2%
Revenue 1Y (TTM)15.39%
Revenue growth 3Y11.66%
Revenue growth 5Y5.92%
Revenue growth Q2Q3.13%

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 10.05% on average per year.
Based on estimates for the next years, PH will show a small growth in Revenue. The Revenue will grow by 5.82% on average per year.
EPS Next Y11.6%
EPS Next 2Y10.34%
EPS Next 3Y10.15%
EPS Next 5Y10.05%
Revenue Next Year5.02%
Revenue Next 2Y4.91%
Revenue Next 3Y4.89%
Revenue Next 5Y5.82%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.30, which indicates a rather expensive current 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.
The average S&P500 Price/Earnings ratio is at 25.86. PH is around the same levels.
PH is valuated rather expensively with a Price/Forward Earnings ratio of 20.54.
PH's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.87, PH is valued at the same level.
Industry RankSector Rank
PE 22.3
Fwd PE 20.54

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PH is on the same level as its industry peers.
61.83% of the companies in the same industry are more expensive than PH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 24.18
EV/EBITDA 17.19

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)1.92
PEG (5Y)1.4
EPS Next 2Y10.34%
EPS Next 3Y10.15%

6

5. Dividend

5.1 Amount

PH has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
PH's Dividend Yield is a higher than the industry average which is at 1.68.
With a Dividend Yield of 1.11, PH pays less dividend than the S&P500 average, which is at 2.44.
Industry RankSector Rank
Dividend Yield 1.11%

5.2 History

On average, the dividend of PH grows each year by 14.73%, 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)14.73%
Div Incr Years7
Div Non Decr Years15

5.3 Sustainability

PH pays out 28.22% of its income as dividend. This is a sustainable payout ratio.
The dividend of PH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.22%
EPS Next 2Y10.34%
EPS Next 3Y10.15%

PARKER HANNIFIN CORP

NYSE:PH (3/1/2024, 7:04:00 PM)

After market: 537.8 0 (0%)

537.8

+2.35 (+0.44%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap69.06B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.11%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 22.3
Fwd PE 20.54
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.92
PEG (5Y)1.4
Profitability
Industry RankSector Rank
ROA 8.87%
ROE 23.29%
ROCE
ROIC
ROICexc
ROICexgc
OM 19.06%
PM (TTM) 13.28%
GM 35.55%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.9
Quick Ratio 0.49
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)23.76%
EPS 3Y25.93%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.39%
Revenue growth 3Y11.66%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y