NasdaqGS:PCAR

Stock Analysis Report

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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

High growth potential with excellent balance sheet and pays a dividend.


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 +/- 4% a week.

Volatility Over Time: PCAR's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

PCAR

2.2%

US Machinery

2.8%

US Market


1 Year Return

7.8%

PCAR

19.4%

US Machinery

20.7%

US Market

Return vs Industry: PCAR underperformed the US Machinery industry which returned 18.2% over the past year.

Return vs Market: PCAR underperformed the US Market which returned 19.8% over the past year.


Shareholder returns

PCARIndustryMarket
7 Day-1.2%2.2%2.8%
30 Day3.4%17.7%12.3%
90 Day1.4%15.2%6.4%
1 Year12.7%7.8%22.5%19.4%23.4%20.7%
3 Year43.7%26.0%32.6%23.1%47.2%37.4%
5 Year115.8%76.3%125.8%100.6%94.1%72.7%

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?

21.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PCAR ($87.74) is trading above our estimate of fair value ($63.23)

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 (21.4x) compared to the US Machinery industry average (29.8x).

PE vs Market: PCAR is poor value based on its PE Ratio (21.4x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: PCAR is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: PCAR is overvalued based on its PB Ratio (3x) compared to the US Machinery industry average (2.8x).


Next Steps

Future Growth

How is PACCAR forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCAR's forecast earnings growth (23% per year) is above the savings rate (2.2%).

Earnings vs Market: PCAR's earnings (23% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PCAR's revenue (13% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: PCAR's revenue (13% 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 (20.3%)


Next Steps

Past Performance

How has PACCAR performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCAR has high quality earnings.

Growing Profit Margin: PCAR's current net profit margins (7.4%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: PCAR's earnings have grown by 16% 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 (-41.5%) over the past year, making it difficult to compare to the Machinery industry average (-15.4%).


Return on Equity

High ROE: PCAR's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is PACCAR's financial position?


Financial Position Analysis

Short Term Liabilities: PCAR's short term assets ($19.4B) exceed its short term liabilities ($4.1B).

Long Term Liabilities: PCAR's short term assets ($19.4B) exceed its long term liabilities ($13.0B).


Debt to Equity History and Analysis

Debt Level: PCAR's debt to equity ratio (102.3%) is considered high.

Reducing Debt: PCAR's debt to equity ratio has reduced from 119.1% to 102.3% over the past 5 years.

Debt Coverage: PCAR's debt is well covered by operating cash flow (30.1%).

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


Balance Sheet


Next Steps

Dividend

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

4.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PCAR's dividend (4.08%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: PCAR's dividend (4.08%) is in the top 25% of dividend payers in the US market (4.05%)


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 (31.2%), 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 covered by earnings (54% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

R. Feight (52 yo)

1.33yrs

Tenure

US$5,850,648

Compensation

Mr. R. Preston Feight is Chief Executive Officer and Director at PACCAR Inc since July 01, 2019 and served as its Executive Vice President since September 2018 until July 01, 2019. He has been instrumental...


CEO Compensation Analysis

Compensation vs Market: R.'s total compensation ($USD5.85M) is below average for companies of similar size in the US market ($USD10.83M).

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

NamePositionTenureCompensationOwnership
R. Feight
CEO & Director1.33yrsUS$5.85m0.0069%
$ 2.1m
Harrie C. A. Schippers
President & CFO2.83yrsUS$4.61m0.011%
$ 3.4m
Darrin Siver
Senior Vice President3.83yrsUS$2.73m0.011%
$ 3.3m
Michael Barkley
Senior VP & Controller13.83yrsUS$2.44m0.013%
$ 4.1m
Mark Pigott
Executive Chairman23.83yrsUS$2.79m0.98%
$ 301.9m
T. Quinn
Senior VP & CTO2.58yrsUS$1.87m0.0095%
$ 2.9m
A. Ley
VP & Chief Information Officer3.83yrsno data0.0012%
$ 381.6k
Ken Hastings
Senior Director of Investor Relationsno datano datano data
Douglas Grandstaff
VP & General Counsel3yrsno data0.0022%
$ 673.9k
Jack LeVier
Vice President of Human Resources13.42yrsno data0.0082%
$ 2.5m
C. Dozier
Senior Vice President0.83yrno data0.0044%
$ 1.3m
Ulrich Kammholz
Treasurer6.42yrsno datano data

3.4yrs

Average Tenure

57.5yo

Average Age

Experienced Management: PCAR's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
R. Feight
CEO & Director1.33yrsUS$5.85m0.0069%
$ 2.1m
Mark Pigott
Executive Chairman23.83yrsUS$2.79m0.98%
$ 301.9m
Gregory M. Spierkel
Independent Director12.58yrsUS$320.03kno data
Charles Williamson
Independent Director14.33yrsUS$335.03k0.0091%
$ 2.8m
Beth Ford
Independent Director5.58yrsUS$295.03kno data
Roderick McGeary
Independent Director8.17yrsUS$320.03kno data
Alison Carnwath
Independent Director15.08yrsUS$300.03k0.0084%
$ 2.6m
Kirk Hachigian
Independent Director11.92yrsUS$295.03kno data
Mark Schulz
Independent Lead Directorno dataUS$295.03k0.0026%
$ 797.0k
Franklin Feder
Independent Director2.58yrsUS$280.03kno data
John Pigott
Director11.58yrsUS$275.03k0.66%
$ 202.2m

11.8yrs

Average Tenure

66yo

Average Age

Experienced Board: PCAR's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$30.771b
  • Shares outstanding: 346.44m
  • Website: https://www.paccar.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCARNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1970
PAISEAQ (SEAQ International)YesCommon StockGBGBPMar 1970
PAEDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1970
PCARWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1970
PAEETLX (Eurotlx)YesCommon StockITEURMar 1970
0KETLSE (London Stock Exchange)YesCommon StockGBUSDMar 1970
P1AC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:23
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.