PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - NYSE:PH - US7010941042 - Common Stock
774.15 USD
+5.16 (+0.67%)
774.15 USD
0 (0%)
Overall PH gets a fundamental rating of 6 out of 10. We evaluated PH against 130 industry peers in the Machinery industry. While PH has a great profitability rating, 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
In the past year PH was profitable.
In the past year PH had a positive cash flow from operations.
Each year in the past 5 years PH has been profitable.
In the past 5 years PH always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PH (11.97%) is better than 87.69% of its industry peers.
With an excellent Return On Equity value of 25.81%, PH belongs to the best of the industry, outperforming 93.08% of the companies in the same industry.
PH has a Return On Invested Capital of 14.58%. This is amongst the best in the industry. PH outperforms 86.15% 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 10.24%.
The 3 year average ROIC (12.83%) for PH is below the current ROIC(14.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROIC | 14.58% |
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 (17.79%) is better than 94.62% of its industry peers.
PH's Profit Margin has improved in the last couple of years.
The Operating Margin of PH (21.06%) is better than 91.54% of its industry peers.
PH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.01%, PH is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
In the last couple of years the Gross Margin of PH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% |
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.
The number of shares outstanding for PH has been reduced compared to 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
PH has an Altman-Z score of 5.91. This indicates that PH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.91, PH belongs to the best of the industry, outperforming 83.85% of the companies in the same industry.
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 70.00% 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 42.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 5.91 |
ROIC/WACC1.56
WACC9.36%
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 84.62% 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: 84.62% 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%.
PH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.50% yearly.
PH shows a decrease in Revenue. In the last year, the revenue decreased by -0.40%.
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)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
PH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.57% yearly.
The Revenue is expected to grow by 5.19% on average over the next years.
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.85%
EPS Next 5Y8.57%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.17%
Revenue Next 5Y5.19%
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
PH is valuated quite expensively with a Price/Earnings ratio of 28.29.
Compared to the rest of the industry, the Price/Earnings ratio of PH is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.13, PH is valued at the same level.
The Price/Forward Earnings ratio is 25.73, which means the current valuation is very expensive for 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 25.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PH is valued a bit more expensive than the industry average as 64.62% of the companies are valued more cheaply.
PH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.32 | ||
| EV/EBITDA | 20.86 |
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.
The excellent profitability rating of PH may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)1.38
EPS Next 2Y9.55%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
PH has a yearly dividend return of 0.93%, which is pretty low.
Compared to an average industry Dividend Yield of 1.83, PH has a dividend in line with its industry peers.
With a Dividend Yield of 0.93, PH pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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
5.3 Sustainability
24.38% of the earnings are spent on dividend by PH. This is a low number and sustainable payout ratio.
PH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.38%
EPS Next 2Y9.55%
EPS Next 3Y8.85%
774.15
+5.16 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change3.51%
Ins Owners0.15%
Ins Owner Change-0.83%
Market Cap97.96B
Revenue(TTM)19.85B
Net Income(TTM)3.53B
Analysts80
Price Target816.74 (5.5%)
Short Float %1.07%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP24.38%
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)1.86%
PT rev (3m)8.43%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 25.73 | ||
| P/S | 4.94 | ||
| P/FCF | 29.32 | ||
| P/OCF | 25.94 | ||
| P/B | 7.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.86 |
EPS(TTM)27.36
EY3.53%
EPS(NY)30.08
Fwd EY3.89%
FCF(TTM)26.4
FCFY3.41%
OCF(TTM)29.84
OCFY3.85%
SpS156.87
BVpS108.12
TBVpS-34.66
PEG (NY)2.84
PEG (5Y)1.38
Graham Number257.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 25.81% | ||
| ROCE | 17.66% | ||
| ROIC | 14.58% | ||
| ROICexc | 14.88% | ||
| ROICexgc | 67.17% | ||
| OM | 21.06% | ||
| PM (TTM) | 17.79% | ||
| GM | 37.01% | ||
| FCFM | 16.83% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 10.89 | ||
| Cash Conversion | 74.21% | ||
| Profit Quality | 94.62% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 5.91 |
F-Score7
WACC9.36%
ROIC/WACC1.56
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 Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y8.85%
EPS Next 5Y8.57%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%1.08%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.17%
Revenue Next 5Y5.19%
EBIT growth 1Y5.71%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y10.52%
EBIT Next 5Y9.14%
FCF growth 1Y11.96%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y11.57%
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 28.29 and the Price/Book (PB) ratio is 7.16.
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 24.38%.