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Market Cap

US$32.4b

Last Updated

2021/04/20 00:00 UTC

Data Sources

Company Financials +

Executive Summary

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has PACCAR's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PCAR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PCAR's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

PCAR

1.1%

US Machinery

1.3%

US Market


1 Year Return

38.9%

PCAR

88.6%

US Machinery

53.8%

US Market

Return vs Industry: PCAR underperformed the US Machinery industry which returned 88.6% over the past year.

Return vs Market: PCAR underperformed the US Market which returned 53.9% over the past year.


Shareholder returns

PCARIndustryMarket
7 Day-2.0%1.1%1.3%
30 Day-1.8%2.3%5.1%
90 Day4.6%13.3%8.9%
1 Year42.2%38.9%93.2%88.6%56.6%53.8%
3 Year52.0%34.5%61.7%50.2%64.4%53.6%
5 Year99.2%66.5%158.7%132.4%120.4%95.7%

Long-Term Price Volatility Vs. Market

How volatile is PACCAR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PACCAR undervalued compared to its fair value and its price relative to the market?

24.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PCAR ($94.92) is trading above our estimate of fair value ($84.47)

Significantly Below Fair Value: PCAR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PCAR is good value based on its PE Ratio (25.4x) compared to the US Machinery industry average (35.8x).

PE vs Market: PCAR is poor value based on its PE Ratio (25.4x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: PCAR is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: PCAR is good value based on its PB Ratio (3.2x) compared to the US Machinery industry average (3.3x).


Future Growth

How is PACCAR forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCAR's forecast earnings growth (13.8% per year) is above the savings rate (2%).

Earnings vs Market: PCAR's earnings (13.8% per year) are forecast to grow slower than the US market (18% per year).

High Growth Earnings: PCAR's earnings are forecast to grow, but not significantly.

Revenue vs Market: PCAR's revenue (7.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: PCAR's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PCAR's Return on Equity is forecast to be high in 3 years time (20.2%)


Past Performance

How has PACCAR performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCAR has high quality earnings.

Growing Profit Margin: PCAR's current net profit margins (6.9%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: PCAR's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: PCAR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PCAR had negative earnings growth (-45.6%) over the past year, making it difficult to compare to the Machinery industry average (-13.3%).


Return on Equity

High ROE: PCAR's Return on Equity (12.5%) is considered low.


Financial Health

How is PACCAR's financial position?


Financial Position Analysis

Short Term Liabilities: PCAR's short term assets ($20.1B) exceed its short term liabilities ($7.9B).

Long Term Liabilities: PCAR's short term assets ($20.1B) exceed its long term liabilities ($10.0B).


Debt to Equity History and Analysis

Debt Level: PCAR's debt to equity ratio (105.6%) is considered high.

Reducing Debt: PCAR's debt to equity ratio has reduced from 124.7% to 105.6% over the past 5 years.

Debt Coverage: PCAR's debt is well covered by operating cash flow (27.2%).

Interest Coverage: PCAR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is PACCAR current dividend yield, its reliability and sustainability?

2.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PCAR's dividend (2.09%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: PCAR's dividend (2.09%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

Stable Dividend: PCAR's dividend payments have been volatile in the past 10 years.

Growing Dividend: PCAR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.2%), PCAR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PCAR's dividends in 3 years are forecast to be well covered by earnings (44.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

R. Feight (52 yo)

1.75yrs

Tenure

US$8,309,718

Compensation

Mr. R. Preston Feight has been the Chief Executive Officer and Director of PACCAR Inc. since July 1, 2019 and served as its Executive Vice President since September 2018 until July 1, 2019. He has been ins...


CEO Compensation Analysis

Compensation vs Market: R.'s total compensation ($USD8.31M) is about average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: R.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: PCAR's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: PCAR's board of directors are seasoned and experienced ( 12 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PCAR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PACCAR Inc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PACCAR Inc
  • Ticker: PCAR
  • Exchange: NasdaqGS
  • Founded: 1905
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$32.405b
  • Shares outstanding: 347.13m
  • Website: https://www.paccar.com

Number of Employees


Location

  • PACCAR Inc
  • 777 - 106th Avenue N.E.
  • Bellevue
  • Washington
  • 98004
  • United States

Listings


Biography

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. It operates through three segments: Truck, Parts, and Fi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/20 00:00
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.