PACCAR (NasdaqGS:PCAR) - Share price, News & Analysis

PCAR fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	5/6
Financial Health	4/6
Dividends	3/6

PCAR Stock Overview

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally.

Rewards

Trading at 35.3% below our estimate of its fair value

Earnings are forecast to grow 2.92% per year

Earnings grew by 40.6% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.43% is not well covered by earnings

PACCAR Competitors

Caterpillar

NYSE:CAT

US$109.0b

Cummins

NYSE:CMI

US$28.4b

Oshkosh

NYSE:OSK

US$5.8b

Meritor

NYSE:MTOR

US$2.6b

Price History & Performance

Summary of all time highs, changes and price drops for PACCAR
Historical stock prices
Current Share Price	US$83.28
52 Week High	US$97.56
52 Week Low	US$77.96
Beta	0.91
1 Month Change	-0.51%
3 Month Change	-11.71%
1 Year Change	-11.22%
3 Year Change	20.14%
5 Year Change	32.44%
Change since IPO	2,155.10%

Recent News & Updates

May 02

PACCAR (NASDAQ:PCAR) Has Re-Affirmed Its Dividend Of US$0.34

The board of PACCAR Inc ( NASDAQ:PCAR ) has announced that it will pay a dividend of US$0.34 per share on the 1st of...

Apr 16

PACCAR Inc (NASDAQ:PCAR) Shares Could Be 38% Below Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of PACCAR Inc...

Apr 04

At US$85.22, Is PACCAR Inc (NASDAQ:PCAR) Worth Looking At Closely?

Let's talk about the popular PACCAR Inc ( NASDAQ:PCAR ). The company's shares received a lot of attention from a...

Shareholder Returns

	PCAR	US Machinery	US Market
7D	-2.4%	-0.4%	0.7%
1Y	-11.2%	-18.2%	-10.8%

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

Return vs Market: PCAR matched the US Market which returned -10.4% over the past year.

Price Volatility

Is PCAR's price volatile compared to industry and market?
PCAR volatility
PCAR Average Weekly Movement	4.2%
Machinery Industry Average Movement	5.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

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.

About the Company

Founded	Employees	CEO	Website
1905	28,500	R. Feight	https://www.paccar.com

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods.

PACCAR Fundamentals Summary

How do PACCAR's earnings and revenue compare to its market cap?
PCAR fundamental statistics
Market Cap	US$29.12b
Earnings (TTM)	US$1.98b
Revenue (TTM)	US$24.15b

14.6x

P/E Ratio

1.2x

P/S Ratio

Is PCAR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PCAR income statement (TTM)
Revenue	US$24.15b
Cost of Revenue	US$19.71b
Gross Profit	US$3.33b
Other Expenses	US$1.35b
Earnings	US$1.98b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.70
Gross Margin	13.79%
Net Profit Margin	8.21%
Debt/Equity Ratio	90.1%

How did PCAR perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

24%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

35.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PCAR ($83.28) is trading below our estimate of fair value ($128.76)

Significantly Below Fair Value: PCAR is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: PCAR is good value based on its PE Ratio (14.6x) compared to the US Machinery industry average (21.5x).

PE vs Market: PCAR is good value based on its PE Ratio (14.6x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: PCAR is poor value based on its PEG Ratio (5x)

Price to Book Ratio

PB vs Industry: PCAR is overvalued based on its PB Ratio (2.4x) compared to the US Machinery industry average (2.2x).

Future Growth

How is PACCAR forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCAR's forecast earnings growth (2.9% per year) is above the savings rate (1.9%).

Earnings vs Market: PCAR's earnings (2.9% per year) are forecast to grow slower than the US market (12.6% per year).

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

Revenue vs Market: PCAR's revenue (3.6% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: PCAR's revenue (3.6% 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 low in 3 years time (16.2%).

Past Performance

How has PACCAR performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PCAR has high quality earnings.

Growing Profit Margin: PCAR's current net profit margins (8.2%) are higher than last year (7.3%).

Past Earnings Growth Analysis

Earnings Trend: PCAR's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: PCAR's earnings growth over the past year (40.6%) exceeds its 5-year average (0.6% per year).

Earnings vs Industry: PCAR earnings growth over the past year (40.6%) exceeded the Machinery industry 29.3%.

Return on Equity

High ROE: PCAR's Return on Equity (16.3%) is considered low.

Financial Health

How is PACCAR's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PCAR's short term assets ($22.4B) exceed its short term liabilities ($5.4B).

Long Term Liabilities: PCAR's short term assets ($22.4B) exceed its long term liabilities ($13.1B).

Debt to Equity History and Analysis

Debt Level: PCAR's net debt to equity ratio (51.6%) is considered high.

Reducing Debt: PCAR's debt to equity ratio has reduced from 118.8% to 90.1% over the past 5 years.

Debt Coverage: PCAR's debt is not well covered by operating cash flow (19.3%).

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?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PCAR's dividend (3.43%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: PCAR's dividend (3.43%) is low compared to 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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.9%), PCAR's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (213.7%), PCAR's dividend payments are not well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

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

5.3yrs

Average management tenure

CEO

R. Feight (53 yo)

2.83yrs

Tenure

US$11,935,763

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 ($USD11.94M) is about average for companies of similar size in the US market ($USD13.26M).

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

Leadership Team

Experienced Management: PCAR's management team is seasoned and experienced (5.3 years average tenure).

Board Members

Experienced Board: PCAR's board of directors are seasoned and experienced ( 10.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31