PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. More Details
Excellent balance sheet average dividend payer.
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.
7 Day Return
1 Year Return
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.
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
1 week ago | Simply Wall StThere Are Reasons To Feel Uneasy About PACCAR's (NASDAQ:PCAR) Returns On Capital
2 weeks ago | Simply Wall StPACCAR Inc (NASDAQ:PCAR) Has A ROE Of 12%
1 month ago | Simply Wall StCalculating The Fair Value Of PACCAR Inc (NASDAQ:PCAR)
Is PACCAR undervalued compared to its fair value and its price relative to the market?
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).
How is PACCAR forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
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%)
How has PACCAR performed over the past 5 years?
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.
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 ($10.0B).
Debt to Equity History and Analysis
Debt Level: PCAR's debt to equity ratio (105.6%) is considered high.
Reducing Debt: PCAR's debt to equity ratio has reduced from 124.7% to 105.6% over the past 5 years.
Debt Coverage: PCAR's debt is well covered by operating cash flow (27.2%).
Interest Coverage: PCAR earns more interest than it pays, so coverage of interest payments is not a concern.
What is PACCAR current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PCAR's dividend (2.09%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: PCAR's dividend (2.09%) is low compared to the top 25% of dividend payers in the US market (3.46%).
Stability and Growth of Payments
Stable Dividend: PCAR's dividend payments have been volatile in the past 10 years.
Growing Dividend: PCAR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.2%), PCAR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PCAR's dividends in 3 years are forecast to be well covered by earnings (44.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
R. Feight (52 yo)
Mr. R. Preston Feight has been the Chief Executive Officer and Director of PACCAR Inc. since July 1, 2019 and served as its Executive Vice President since September 2018 until July 1, 2019. He has been ins...
CEO Compensation Analysis
Compensation vs Market: R.'s total compensation ($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.
Experienced Management: PCAR's management team is considered experienced (2.5 years average tenure).
Experienced Board: PCAR's board of directors are seasoned and experienced ( 12 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
PACCAR Inc's company bio, employee growth, exchange listings and data sources
- 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
- PACCAR Inc
- 777 - 106th Avenue N.E.
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/20 00:00|
|End of Day Share Price||2021/04/19 00:00|
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.