PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:PH • US7010941042
935.84 USD
-12.56 (-1.32%)
At close: Jan 30, 2026
933.12 USD
-2.72 (-0.29%)
After Hours: 1/30/2026, 8:12:57 PM
We assign a fundamental rating of 6 out of 10 to PH. PH was compared to 132 industry peers in the Machinery industry. PH scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, PH is valued expensive at the moment.
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.
- Each year in the past 5 years PH had a positive operating cash flow.
1.2 Ratios
- PH has a better Return On Assets (11.87%) than 85.61% of its industry peers.
- PH has a better Return On Equity (26.43%) than 93.94% of its industry peers.
- PH has a better Return On Invested Capital (14.75%) than 86.36% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PH is above the industry average of 10.20%.
- 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
- The Profit Margin of PH (18.18%) is better than 94.70% 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 21.31%, PH belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of PH has grown nicely.
- The Gross Margin of PH (37.20%) is better than 70.45% 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
- PH has less shares outstanding than it did 5 years ago.
- PH has a better debt/assets ratio than last year.
2.2 Solvency
- PH has an Altman-Z score of 6.40. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.40, PH belongs to the top of the industry, outperforming 87.12% of the companies in the same industry.
- The Debt to FCF ratio of PH is 3.05, which is a good value as it means it would take PH, 3.05 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.05, PH is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- A Debt/Equity ratio of 0.54 indicates that PH is somewhat dependend on debt financing.
- PH has a Debt to Equity ratio (0.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.4 |
ROIC/WACC1.56
WACC9.47%
2.3 Liquidity
- A Current Ratio of 1.07 indicates that PH should not have too much problems paying its short term obligations.
- PH has a Current ratio of 1.07. This is amonst the worse of the industry: PH underperforms 86.36% 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 13.42%, which is quite good.
- 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.
- PH shows a decrease in Revenue. In the last year, the revenue decreased by -0.40%.
- PH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.70% yearly.
EPS 1Y (TTM)13.42%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%17.15%
Revenue 1Y (TTM)-0.4%
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 9.19% yearly.
- The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y14.16%
EPS Next 2Y11.9%
EPS Next 3Y11.1%
EPS Next 5Y9.19%
Revenue Next Year6.92%
Revenue Next 2Y7.09%
Revenue Next 3Y6.64%
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.
- 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 31.72.
- PH's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, PH is valued at the same level.
- A Price/Forward Earnings ratio of 27.32 indicates a quite expensive valuation of PH.
- The rest of the industry has a similar Price/Forward Earnings ratio as PH.
- When comparing the Price/Forward Earnings ratio of PH to the average of the S&P500 Index (25.57), we can say PH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.72 | ||
| Fwd PE | 27.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than 68.18% of the companies in the same industry.
- PH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.88 | ||
| EV/EBITDA | 25.01 |
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)2.24
PEG (5Y)1.55
EPS Next 2Y11.9%
EPS Next 3Y11.1%
5. Dividend
5.1 Amount
- PH has a yearly dividend return of 0.79%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.02, PH pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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 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 24.15% 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 2Y11.9%
EPS Next 3Y11.1%
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 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 14.16% in the next year.