Why I Like PACCAR Inc (NASDAQ:PCAR)

I’ve been keeping an eye on PACCAR Inc (NASDAQ:PCAR) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe PCAR has a lot to offer. Basically, it is a financially-robust , dividend-paying company with an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on PACCAR here.

Excellent balance sheet established dividend payer

PCAR’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that PCAR manages its cash and cost levels well, which is a key determinant of the company’s health. PCAR appears to have made good use of debt, producing operating cash levels of 0.28x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqGS:PCAR Income Statement, August 16th 2019
NasdaqGS:PCAR Income Statement, August 16th 2019

PCAR’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 5.1%.

NasdaqGS:PCAR Historical Dividend Yield, August 16th 2019
NasdaqGS:PCAR Historical Dividend Yield, August 16th 2019

Next Steps:

For PACCAR, there are three fundamental aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for PCAR’s future growth? Take a look at our free research report of analyst consensus for PCAR’s outlook.
  2. Valuation: What is PCAR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PCAR is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PCAR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.