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PACCAR

Nasdaq:PCAR
Snowflake Description

Solid track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PCAR
Nasdaq
$21B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. The last earnings update was 17 days ago. More info.


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PCAR Share Price and Events
7 Day Returns
4.1%
NasdaqGS:PCAR
-3.4%
US Machinery
-3.4%
US Market
1 Year Returns
-10.2%
NasdaqGS:PCAR
-4%
US Machinery
10%
US Market
PCAR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PACCAR (PCAR) 4.1% 0.9% -10.6% -10.2% 18.4% 7.1%
US Machinery -3.4% -3% -5.4% -4% 58.1% 43.3%
US Market -3.4% -0.6% -4.3% 10% 55.8% 96.7%
1 Year Return vs Industry and Market
  • PCAR underperformed the Machinery industry which returned -4% over the past year.
  • PCAR underperformed the Market in United States of America which returned 10% over the past year.
Price Volatility
PCAR
Industry
5yr Volatility vs Market

Value

 Is PACCAR undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PACCAR to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PACCAR.

NasdaqGS:PCAR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:PCAR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.073 (1 + (1- 21%) (45.28%))
1.457
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.46
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.457 * 7.05%)
13.22%

Discounted Cash Flow Calculation for NasdaqGS:PCAR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for PACCAR is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:PCAR DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 2,037.85 1,798.71 1,475.00 1,885.00 1,940.74
Source Analyst x8 Analyst x7 Analyst x2 Analyst x1 Est @ 2.96%
Present Value
Discounted (@ 13.22%)
1,799.90 1,403.18 1,016.29 1,147.13 1,043.14
Present value of next 5 years cash flows $6,409.65
NasdaqGS:PCAR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $1,940.74 × (1 + 2.95%) ÷ (13.22% – 2.95%)
$19,453.98
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $19,453.98 ÷ (1 + 13.22%)5
$10,456.49
NasdaqGS:PCAR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $6,409.65 + $10,456.49
$16,866.14
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,866.14 / 349.44
$48.27
NasdaqGS:PCAR Discount to Share Price
Calculation Result
Value per share (USD) From above. $48.27
Current discount Discount to share price of $60.77
= -1 x ($60.77 - $48.27) / $48.27
-25.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of PACCAR is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PACCAR's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PACCAR's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:PCAR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $6.27
NasdaqGS:PCAR Share Price ** NasdaqGS (2018-11-16) in USD $60.77
United States of America Machinery Industry PE Ratio Median Figure of 101 Publicly-Listed Machinery Companies 19.47x
United States of America Market PE Ratio Median Figure of 2,977 Publicly-Listed Companies 17.93x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PACCAR.

NasdaqGS:PCAR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PCAR Share Price ÷ EPS (both in USD)

= 60.77 ÷ 6.27

9.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PACCAR is good value based on earnings compared to the US Machinery industry average.
  • PACCAR is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does PACCAR's expected growth come at a high price?
Raw Data
NasdaqGS:PCAR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
-2.4%per year
United States of America Machinery Industry PEG Ratio Median Figure of 84 Publicly-Listed Machinery Companies 1.22x
United States of America Market PEG Ratio Median Figure of 2,096 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

NasdaqGS:PCAR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.69x ÷ -2.4%

-4.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PACCAR earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on PACCAR's assets?
Raw Data
NasdaqGS:PCAR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $26.22
NasdaqGS:PCAR Share Price * NasdaqGS (2018-11-16) in USD $60.77
United States of America Machinery Industry PB Ratio Median Figure of 128 Publicly-Listed Machinery Companies 2.48x
United States of America Market PB Ratio Median Figure of 4,980 Publicly-Listed Companies 1.85x
NasdaqGS:PCAR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PCAR Share Price ÷ Book Value per Share (both in USD)

= 60.77 ÷ 26.22

2.32x

* Primary Listing of PACCAR.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PACCAR is good value based on assets compared to the US Machinery industry average.
X
Value checks
We assess PACCAR's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. PACCAR has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is PACCAR expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PACCAR expected to grow at an attractive rate?
  • PACCAR's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 3%.
Growth vs Market Checks
  • PACCAR's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • PACCAR's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:PCAR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:PCAR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts -2.4%
NasdaqGS:PCAR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts -1.4%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:PCAR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:PCAR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 22,574 2,200 1
2021-12-31 21,301 2,043 1
2020-12-31 20,989 2,807 1,978 11
2019-12-31 22,790 2,816 2,176 17
2018-12-31 22,078 2,886 2,156 17
NasdaqGS:PCAR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 22,671 2,821 2,206
2018-06-30 21,974 2,729 2,064
2018-03-31 20,873 2,631 1,877
2017-12-31 19,456 2,716 1,675
2017-09-30 18,073 2,633 1,375
2017-06-30 17,262 1,837 1,318
2017-03-31 16,971 2,116 1,427
2016-12-31 17,033 2,301 522
2016-09-30 17,318 2,195 580
2016-06-30 17,916 3,018 665
2016-03-31 18,582 2,876 631
2015-12-31 19,115 2,556 1,604

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PACCAR's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • PACCAR's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:PCAR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from PACCAR Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PCAR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 6.32 6.32 6.32 1.00
2021-12-31 5.66 5.87 5.45 2.00
2020-12-31 5.66 6.60 5.15 12.00
2019-12-31 6.26 6.69 5.95 19.00
2018-12-31 6.13 6.25 6.00 19.00
NasdaqGS:PCAR Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 6.27
2018-06-30 5.86
2018-03-31 5.33
2017-12-31 4.76
2017-09-30 3.91
2017-06-30 3.75
2017-03-31 4.06
2016-12-31 1.49
2016-09-30 1.65
2016-06-30 1.89
2016-03-31 1.78
2015-12-31 4.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • PACCAR is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess PACCAR's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PACCAR has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has PACCAR performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PACCAR's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PACCAR's year on year earnings growth rate has been positive over the past 5 years.
  • PACCAR's 1-year earnings growth exceeds its 5-year average (60.5% vs 8.3%)
  • PACCAR's earnings growth has exceeded the US Machinery industry average in the past year (60.5% vs 27.2%).
Earnings and Revenue History
PACCAR's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PACCAR Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PCAR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 22,670.60 2,206.20 492.40 296.20
2018-06-30 21,973.50 2,063.60 485.30 290.30
2018-03-31 20,872.50 1,877.00 472.10 279.70
2017-12-31 19,456.40 1,675.20 449.50 264.70
2017-09-30 18,072.50 1,374.80 418.80 261.70
2017-06-30 17,262.20 1,318.30 420.80 253.90
2017-03-31 16,971.20 1,426.60 445.00 248.60
2016-12-31 17,033.30 521.70 440.80 247.20
2016-09-30 17,317.90 580.10 447.20 246.30
2016-06-30 17,915.70 665.10 448.70 244.70
2016-03-31 18,582.40 631.00 446.70 243.20
2015-12-31 19,115.10 1,604.00 445.90 239.80
2015-09-30 19,878.90 1,651.10 441.30 235.60
2015-06-30 19,960.10 1,591.30 446.70 228.50
2015-03-31 19,449.80 1,463.30 453.30 219.10
2014-12-31 18,997.00 1,358.80 465.20 215.60
2014-09-30 18,476.80 1,298.70 472.80 214.00
2014-06-30 17,848.50 1,236.70 471.50 220.10
2014-03-31 17,579.40 1,209.10 469.00 232.00
2013-12-31 17,123.80 1,171.30 465.30 251.40
2013-09-30 16,521.90 1,090.60 455.30 256.90
2013-06-30 16,042.00 1,014.80 458.10 267.10
2013-03-31 16,198.70 1,020.40 468.30 279.10
2012-12-31 17,050.50 1,111.60 476.40 279.30
2012-09-30 17,907.30 1,185.80 483.50 285.20
2012-06-30 18,344.20 1,233.80 482.70 288.40
2012-03-31 17,847.70 1,176.30 468.80 292.10
2011-12-31 16,355.20 1,042.30 452.90 288.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • PACCAR has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • PACCAR used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
  • PACCAR's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess PACCAR's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PACCAR has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is PACCAR's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PACCAR's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PACCAR is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • PACCAR's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of PACCAR's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PACCAR Company Filings, last reported 1 month ago.

NasdaqGS:PCAR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 9,171.00 9,615.50 3,792.30
2018-06-30 8,779.40 9,236.10 3,444.80
2018-03-31 8,567.30 9,238.20 3,472.00
2017-12-31 8,050.50 8,977.70 3,621.90
2017-09-30 7,935.60 8,923.30 3,421.30
2017-06-30 7,500.50 8,616.80 3,004.70
2017-03-31 7,079.30 8,415.40 2,894.70
2016-12-31 6,777.60 8,521.60 2,922.60
2016-09-30 6,978.20 8,594.60 2,801.20
2016-06-30 6,709.70 8,497.60 3,397.20
2016-03-31 6,343.20 8,632.10 3,231.10
2015-12-31 6,940.40 8,638.20 3,378.00
2015-09-30 7,343.80 8,741.60 3,450.70
2015-06-30 7,218.60 8,641.60 3,275.00
2015-03-31 6,731.60 8,250.50 2,714.50
2014-12-31 6,753.20 8,276.30 2,937.10
2014-09-30 7,162.70 8,266.60 2,860.60
2014-06-30 7,159.30 8,382.20 2,639.80
2014-03-31 6,863.50 8,289.50 2,461.60
2013-12-31 6,634.30 8,491.90 2,925.20
2013-09-30 6,480.90 8,357.40 2,831.50
2013-06-30 6,111.60 7,967.40 2,522.80
2013-03-31 5,947.90 7,950.20 2,379.80
2012-12-31 5,846.90 7,992.40 2,395.90
2012-09-30 5,862.10 7,778.90 2,640.90
2012-06-30 5,712.10 7,514.90 2,591.20
2012-03-31 5,719.10 7,191.60 2,779.80
2011-12-31 5,364.40 6,763.40 2,900.70
  • PACCAR's level of debt (104.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (128.9% vs 104.8% today).
  • Debt is well covered by operating cash flow (29.3%, greater than 20% of total debt).
  • PACCAR earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess PACCAR's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PACCAR has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.82%
Current annual income from PACCAR dividends. Estimated to be 4.05% next year.
If you bought $2,000 of PACCAR shares you are expected to receive $76 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • PACCAR's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.38%).
  • PACCAR's dividend is above the markets top 25% of dividend payers in United States of America (3.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:PCAR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 78 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1977 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:PCAR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 2.52 7.00
2019-12-31 2.46 12.00
2018-12-31 2.42 11.00
NasdaqGS:PCAR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-09-11 2.320 3.666
2018-05-01 2.320 3.602
2017-12-05 2.200 3.150
2017-09-12 2.200 3.103
2017-07-11 1.600 2.401
2017-04-25 1.600 2.474
2016-12-06 1.560 2.329
2016-09-13 1.560 2.683
2016-07-11 2.360 4.104
2016-04-26 2.360 4.307
2015-12-08 2.360 4.684
2015-09-23 2.360 4.507
2015-07-07 1.960 3.208
2015-04-21 1.880 2.884
2014-12-09 1.880 2.917
2014-09-09 1.880 3.025
2014-07-08 1.780 2.808
2014-04-29 1.780 2.804
2013-12-10 1.700 2.755
2013-09-10 1.700 3.006
2013-07-09 1.600 2.876
2013-04-29 1.600 3.011
2012-12-04 1.600 3.374
2012-09-11 1.600 3.809
2012-07-10 1.500 3.801
2012-04-24 1.500 3.837
2011-12-06 1.420 3.303
2011-09-13 1.420 3.655
2011-07-11 0.720 1.805
2011-04-19 0.480 0.954
2010-12-07 0.480 0.909
2010-09-14 0.480 0.943
2010-07-13 0.360 0.820
2010-04-28 0.360 0.852
2009-12-07 0.360 0.925
2009-09-15 0.360 0.948
2009-07-08 0.460 1.326
2009-04-28 0.820 2.578
2008-12-09 0.820 2.986
2008-11-20 0.820 3.086

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of PACCAR's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess PACCAR's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PACCAR afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PACCAR has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of PACCAR's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ron Armstrong
COMPENSATION $11,040,212
AGE 63
TENURE AS CEO 4.6 years
CEO Bio

Mr. Ronald E. Armstrong, also known as Ron serves as the Chief Executive Officer of PACCAR Financial Corp. Mr. Armstrong has been the Chief Executive Officer of PACCAR Inc. since April 27, 2014. He served as the President at PACCAR Inc. since January 1, 2011 until April 27, 2014 and also served as its Principal Financial Officer since July 15, 2011. He served as the Principal Financial Officer of PACCAR Financial Corp. Previously, he served as Executive Vice President of Financial Services at PACCAR Inc. and served as its Executive Operations Officer. Mr. Armstrong served as a Senior Vice President of PACCAR Inc. from December 2007 to July 2010. Mr. Armstrong also served as Controller and Comptroller of PACCAR Inc. since November 2002 until December 31, 2006, Vice President from November 2002 to December 31, 2006 and again from January 2007 to November 2007, Operations Controller from December 1995 to October 2002 and also served as its Principal Accounting Officer until December 31, 2006. He also served as Senior Manager at Ernst & Young. He serves as the Chairman of PACCAR Financial Corp. Mr. Armstrong served as the Chairman of the Board at Paccar Financial México, S.A. De C.V., Sofom, E.N.R. Mr. Armstrong served as a Vice Chairman of PACCAR Financial Corp. He serves as a Director of PACCAR Financial Corp. Mr. Armstrong has been a Director of PACCAR Inc. since April 27, 2014. He serves as a Director of PACCAR Financial Europe B.V. He serves as a Member of the Board of Directors of Paccar Capital México, S.A. de C.V. Mr. Amstrong holds BS degree in Accounting from the University of Central Oklahoma and is a Certified Public Accountant.

CEO Compensation
  • Ron's compensation has increased by more than 20% in the past year.
  • Ron's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the PACCAR management team in years:

4.2
Average Tenure
58
Average Age
  • The tenure for the PACCAR management team is about average.
Management Team

Ron Armstrong

TITLE
CEO & Director
COMPENSATION
$11M
AGE
63
TENURE
4.6 yrs

Harrie C. A. Schippers

TITLE
President & CFO
COMPENSATION
$3M
AGE
55
TENURE
0.8 yrs

T. Quinn

TITLE
Senior VP & GM of Peterbilt
COMPENSATION
$2M
AGE
56
TENURE
8.9 yrs

Bob Bengston

TITLE
Senior Vice President of Financial Services
COMPENSATION
$2M
AGE
62
TENURE
4.8 yrs

Gary Moore

TITLE
Executive Vice President
COMPENSATION
$4M
AGE
62
TENURE
3.8 yrs

Mark Pigott

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
64

A. Ley

TITLE
VP & Chief Information Officer
AGE
52
TENURE
1.8 yrs

Ken Hastings

TITLE
Senior Director of Investor Relations

Douglas Grandstaff

TITLE
VP & General Counsel
AGE
57
TENURE
1 yrs

Jack LeVier

TITLE
Vice President of Human Resources
AGE
58
TENURE
11.4 yrs
Board of Directors Tenure

Average tenure and age of the PACCAR board of directors in years:

8.1
Average Tenure
63.5
Average Age
  • The tenure for the PACCAR board of directors is about average.
Board of Directors

Mark Pigott

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
64
TENURE
21.8 yrs

Chuck Williamson

TITLE
Lead Director
COMPENSATION
$280K
AGE
69
TENURE
4.8 yrs

Ron Armstrong

TITLE
CEO & Director
COMPENSATION
$11M
AGE
63
TENURE
4.6 yrs

Greg Spierkel

TITLE
Independent Director
COMPENSATION
$270K
AGE
61
TENURE
10.6 yrs

Rod McGeary

TITLE
Independent Director
COMPENSATION
$270K
AGE
68
TENURE
6.2 yrs

Dame Carnwath

TITLE
Independent Director
COMPENSATION
$265K
AGE
65
TENURE
13.1 yrs

Kirk Hachigian

TITLE
Independent Director
COMPENSATION
$250K
AGE
58
TENURE
9.9 yrs

John Pigott

TITLE
Director
COMPENSATION
$235K
AGE
54
TENURE
9.6 yrs

Mark Schulz

TITLE
Independent Director
COMPENSATION
$260K
AGE
65
TENURE
6.6 yrs

Beth Ford

TITLE
Director
COMPENSATION
$260K
AGE
54
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Nov 18 Sell Douglas Grandstaff Individual 13. Nov 18 13. Nov 18 -607 $59.67 $-36,220
09. Nov 18 Sell David Danforth Individual 07. Nov 18 07. Nov 18 -651 $59.44 $-38,698
31. Jul 18 Sell Douglas Grandstaff Individual 31. Jul 18 31. Jul 18 -580 $65.90 $-38,221
31. Jul 18 Sell David Danforth Individual 27. Jul 18 27. Jul 18 -1,530 $65.78 $-100,643
17. May 18 Sell C. Dozier Individual 15. May 18 15. May 18 -10,000 $63.52 $-635,200
21. Feb 18 Buy Marco Davila Individual 16. Feb 18 16. Feb 18 570 $69.05 $39,356
09. Feb 18 Buy Douglas Grandstaff Individual 07. Feb 18 07. Feb 18 21 $70.55 $1,482
X
Management checks
We assess PACCAR's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PACCAR has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Is PACCAR Inc's (NASDAQ:PCAR) CEO Paid Enough To Stay Motivated?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … According to our data, PACCAR Inc has a market capitalization of US$20.4b, and pays its CEO total annual compensation worth US$11m. … We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m.

Simply Wall St -

Is It Time To Consider Buying PACCAR Inc (NASDAQ:PCAR)?

received a lot of attention from a substantial price movement on the NasdaqGS over the last few months, increasing to $72.41 at one point, and dropping to the lows of $54.95. … A question to answer is whether PACCAR's current trading price of $59.14 reflective of the actual value of the? … Let’s take a look at PACCAR’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

PACCAR Inc (NASDAQ:PCAR): Commentary On Fundamentals

PACCAR Inc (NASDAQ:PCAR) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … , dividend-paying company with a

Simply Wall St -

Is PACCAR Inc's (NASDAQ:PCAR) Balance Sheet Strong Enough To Weather A Storm?

the key to their continued success lies in its financial health. … Today we will look at PACCAR’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

Is PACCAR Inc (NASDAQ:PCAR) Expensive For A Reason? A Look At The Intrinsic Value

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

How PACCAR Inc (NASDAQ:PCAR) Delivered A Better ROE Than Its Industry

and want to learn about Return on Equity using a real-life example. … With more debt, PCAR can invest even more and earn more money, thus pushing up its returns. … However, ROE only measures returns against equity, not debt.

Simply Wall St -

Only 2 Days Left Before PACCAR Inc (NASDAQ:PCAR) Will Start Trading Ex-Dividend, Is It Worth Buying?

Investors who want to cash in on PACCAR Inc's (NASDAQ:PCAR) upcoming dividend of US$0.28 per share have only 2 days left to buy the shares before its ex-dividend date, 13 August 2018, in time for dividends payable on the 05 September 2018. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

Should You Be Concerned About PACCAR Inc's (NASDAQ:PCAR) Investors?

In this analysis, my focus will be on developing a perspective on PACCAR Inc’s (NASDAQ:PCAR) latest ownership structure, a less discussed, but important factor. … The impact of a company's ownership structure affects both its short- and long-term performance. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

Does PACCAR Inc (NASDAQ:PCAR) Have A Place In Your Portfolio?

PACCAR Inc (NASDAQ:PCAR) has returned to shareholders over the past 10 years, an average dividend yield of 3.00% annually. … Does PACCAR tick all the boxes of a great dividend stock? … 5 checks you should do on a dividend stock

Simply Wall St -

PACCAR Inc (NASDAQ:PCAR): A Look At Return On Capital

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently PACCAR is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Company Info

Map
Description

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. It operates in three segments: Truck, Parts, and Financial Services. The Truck segment offers trucks that are used for the over-the-road and off-highway hauling of commercial and consumer goods. This segment sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full service leasing operations under the PacLease trade name. This segment also provides equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owner/operators and other businesses; and truck inventory financing services to independent dealers. In addition, it offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and sells industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

Details
Name: PACCAR Inc
PCAR
Exchange: NasdaqGS
Founded: 1905
$21,235,176,860
349,435,196
Website: http://www.paccar.com
Address: PACCAR Inc
777 - 106th Avenue NE,
Bellevue,
Washington, 98004,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PCAR Common Stock Nasdaq Global Select US USD 03. Mar 1970
DB PAE Common Stock Deutsche Boerse AG DE EUR 03. Mar 1970
WBAG PCAR Common Stock Wiener Boerse AG AT EUR 03. Mar 1970
Number of employees
Current staff
Staff numbers
25,000
PACCAR employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/19 00:54
End of day share price update: 2018/11/16 00:00
Last estimates confirmation: 2018/11/14
Last earnings filing: 2018/11/02
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.