PARKER HANNIFIN CORP (PH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PH - US7010941042 - Common Stock
861.7 USD
+0.21 (+0.02%)
861.7 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PH. PH was compared to 130 industry peers in the Machinery industry. While PH has a great profitability rating, 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
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.
PH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PH (11.87%) is better than 86.15% of its industry peers.
Looking at the Return On Equity, with a value of 26.43%, PH belongs to the top of the industry, outperforming 93.08% of the companies in the same industry.
PH has a Return On Invested Capital of 14.75%. This is amongst the best in the industry. PH outperforms 86.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PH is above the industry average of 10.35%.
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
With an excellent Profit Margin value of 18.18%, PH belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
PH's Profit Margin has improved in the last couple of years.
PH has a Operating Margin of 21.31%. This is amongst the best in the industry. PH outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of PH has grown nicely.
With a decent Gross Margin value of 37.20%, PH is doing good in the industry, outperforming 68.46% of the companies in the same industry.
PH's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PH is creating some value.
The number of shares outstanding for PH has been reduced compared to 1 year ago.
Compared to 5 years ago, PH has less shares outstanding
The debt/assets ratio for PH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.01 indicates that PH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.01, PH belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
PH has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as PH would need 3.05 years to pay back of all of its debts.
PH has a better Debt to FCF ratio (3.05) than 70.00% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that PH is somewhat dependend on debt financing.
PH has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: PH outperforms 44.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 6.01 |
ROIC/WACC1.61
WACC9.19%
2.3 Liquidity
PH has a Current Ratio of 1.07. This is a normal value and indicates that PH is financially healthy and should not expect problems in meeting its short term obligations.
PH's Current ratio of 1.07 is on the low side compared to the rest of the industry. PH is outperformed by 86.15% 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.
With a Quick ratio value of 0.61, PH is not doing good in the industry: 86.15% of the companies in the same industry are doing better.
| 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 10.73%, 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.
Looking at the last year, PH shows a small growth in Revenue. The Revenue has grown by 0.22% in the last year.
The Revenue has been growing slightly by 7.70% on average over the past years.
EPS 1Y (TTM)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
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 Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
EPS Next 5Y9.19%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.79%
Revenue Next 5Y5.48%
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.
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 30.36.
Based on the Price/Earnings ratio, PH is valued a bit more expensive than 60.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, PH is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.24, the valuation of PH can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PH indicates a slightly more expensive valuation: PH is more expensive than 61.54% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PH to the average of the S&P500 Index (36.59), we can say PH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 26.24 |
4.2 Price Multiples
64.62% of the companies in the same industry are cheaper than PH, based on the Enterprise Value to EBITDA ratio.
PH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.12 | ||
| EV/EBITDA | 22.89 |
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.
The excellent profitability rating of PH may justify a higher PE ratio.
PEG (NY)3.05
PEG (5Y)1.48
EPS Next 2Y9.55%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
PH has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 1.97, PH has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of PH is nicely growing with an annual growth rate of 13.82%!
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
PH pays out 24.15% 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.
DP24.15%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
861.7
+0.21 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change5.67%
Ins Owners0.15%
Ins Owner Change-1.08%
Market Cap108.74B
Revenue(TTM)20.03B
Net Income(TTM)3.64B
Analysts80
Price Target909.82 (5.58%)
Short Float %1.15%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend6.75
Dividend Growth(5Y)13.82%
DP24.15%
Div Incr Years8
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.44%
Min EPS beat(2)5.1%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)3.23%
Min EPS beat(4)0.28%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)4.1%
EPS beat(12)11
Avg EPS beat(12)5.66%
EPS beat(16)15
Avg EPS beat(16)6.07%
Revenue beat(2)0
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.16%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)2
Avg Revenue beat(12)-1.4%
Revenue beat(16)4
Avg Revenue beat(16)-0.95%
PT rev (1m)13.13%
PT rev (3m)19.99%
EPS NQ rev (1m)4.6%
EPS NQ rev (3m)4.85%
EPS NY rev (1m)0%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)2.09%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 26.24 | ||
| P/S | 5.43 | ||
| P/FCF | 32.12 | ||
| P/OCF | 28.51 | ||
| P/B | 7.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.89 |
EPS(TTM)28.38
EY3.29%
EPS(NY)32.83
Fwd EY3.81%
FCF(TTM)26.83
FCFY3.11%
OCF(TTM)30.22
OCFY3.51%
SpS158.73
BVpS109.18
TBVpS-40.61
PEG (NY)3.05
PEG (5Y)1.48
Graham Number264.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.87% | ||
| ROE | 26.43% | ||
| ROCE | 17.86% | ||
| ROIC | 14.75% | ||
| ROICexc | 15.05% | ||
| ROICexgc | 77.92% | ||
| OM | 21.31% | ||
| PM (TTM) | 18.18% | ||
| GM | 37.2% | ||
| FCFM | 16.9% |
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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 47.11% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.64% | ||
| Profit Quality | 92.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 6.01 |
F-Score7
WACC9.19%
ROIC/WACC1.61
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)10.73%
EPS 3Y13.5%
EPS 5Y20.5%
EPS Q2Q%16.45%
EPS Next Y9.95%
EPS Next 2Y9.55%
EPS Next 3Y10.15%
EPS Next 5Y9.19%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y7.76%
Revenue growth 5Y7.7%
Sales Q2Q%3.67%
Revenue Next Year4.92%
Revenue Next 2Y5.21%
Revenue Next 3Y5.79%
Revenue Next 5Y5.48%
EBIT growth 1Y6.17%
EBIT growth 3Y13.35%
EBIT growth 5Y18.5%
EBIT Next Year19.76%
EBIT Next 3Y12.98%
EBIT Next 5Y8.49%
FCF growth 1Y21.88%
FCF growth 3Y14.74%
FCF growth 5Y12.69%
OCF growth 1Y20.22%
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 30.36 and the Price/Book (PB) ratio is 7.89.
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 24.15%.