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PH

Parker-Hannifin NYSE:PH Stock Report

Last Price

US$295.76

Market Cap

US$38.0b

7D

-4.0%

1Y

2.7%

Updated

19 Aug, 2022

Data

Company Financials +
PH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends5/6

PH Stock Overview

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide.

Parker-Hannifin Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Parker-Hannifin
Historical stock prices
Current Share PriceUS$295.76
52 Week HighUS$340.00
52 Week LowUS$230.44
Beta1.57
1 Month Change11.53%
3 Month Change14.30%
1 Year Change2.75%
3 Year Change87.15%
5 Year Change88.02%
Change since IPO3,649.07%

Recent News & Updates

Aug 18

Parker-Hannifin declares $1.33 dividend

Parker-Hannifin (NYSE:PH) declares $1.33/share quarterly dividend, in line with previous. Forward yield 1.78% Payable Sept. 9; for shareholders of record Aug. 29; ex-div Aug. 26. See PH Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

PHUS MachineryUS Market
7D-4.0%1.4%1.4%
1Y2.7%-6.9%-8.4%

Return vs Industry: PH exceeded the US Machinery industry which returned -6.9% over the past year.

Return vs Market: PH exceeded the US Market which returned -8.4% over the past year.

Price Volatility

Is PH's price volatile compared to industry and market?
PH volatility
PH Average Weekly Movement4.3%
Machinery Industry Average Movement5.8%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: PH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
191754,640Tom Williamshttps://www.parker.com

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates through two segments, Diversified Industrial and Aerospace Systems. The Company’s Diversified Industrial segment offers sealing, shielding, thermal products and systems, adhesives, coatings, and noise vibration and harshness solutions; filters, systems, and diagnostics solutions to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors, which control, transmit, and contain fluid; control solutions for extreme corrosion resistance, temperatures, pressures, and precise flow; and hydraulic, pneumatic, and electromechanical components and systems for builders and users of mobile and industrial machinery and equipment.

Parker-Hannifin Fundamentals Summary

How do Parker-Hannifin's earnings and revenue compare to its market cap?
PH fundamental statistics
Market CapUS$37.97b
Earnings (TTM)US$1.32b
Revenue (TTM)US$15.86b

28.9x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PH income statement (TTM)
RevenueUS$15.86b
Cost of RevenueUS$11.39b
Gross ProfitUS$4.47b
Other ExpensesUS$3.16b
EarningsUS$1.32b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 03, 2022

Earnings per share (EPS)10.25
Gross Margin28.21%
Net Profit Margin8.29%
Debt/Equity Ratio129.6%

How did PH perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

43%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PH?

Other financial metrics that can be useful for relative valuation.

PH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.1x
Enterprise Value/EBITDA14.3x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does PH's PE Ratio compare to its peers?

PH PE Ratio vs Peers
The above table shows the PE ratio for PH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.4x
OTIS Otis Worldwide
26.8x8.8%US$33.4b
ITW Illinois Tool Works
25x6.0%US$67.1b
FTV Fortive
36.5x15.6%US$24.3b
DOV Dover
17.3x6.5%US$20.2b
PH Parker-Hannifin
28.9x22.0%US$38.0b

Price-To-Earnings vs Peers: PH is expensive based on its Price-To-Earnings Ratio (28.9x) compared to the peer average (26.4x).


Price to Earnings Ratio vs Industry

How does PH's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: PH is expensive based on its Price-To-Earnings Ratio (28.9x) compared to the US Machinery industry average (22.5x)


Price to Earnings Ratio vs Fair Ratio

What is PH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.9x
Fair PE Ratio31.5x

Price-To-Earnings vs Fair Ratio: PH is good value based on its Price-To-Earnings Ratio (28.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.5x).


Share Price vs Fair Value

What is the Fair Price of PH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PH ($295.76) is trading below our estimate of fair value ($365.55)

Significantly Below Fair Value: PH is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Parker-Hannifin forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PH's forecast earnings growth (22% per year) is above the savings rate (1.9%).

Earnings vs Market: PH's earnings (22% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: PH's revenue (3.9% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: PH's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PH's Return on Equity is forecast to be low in 3 years time (16%).


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Past Performance

How has Parker-Hannifin performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PH has high quality earnings.

Growing Profit Margin: PH's current net profit margins (8.3%) are lower than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: PH's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: PH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PH had negative earnings growth (-24.7%) over the past year, making it difficult to compare to the Machinery industry average (9.4%).


Return on Equity

High ROE: PH's Return on Equity (14.9%) is considered low.


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Financial Health

How is Parker-Hannifin'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: PH's short term assets ($12.0B) exceed its short term liabilities ($5.9B).

Long Term Liabilities: PH's short term assets ($12.0B) exceed its long term liabilities ($11.2B).


Debt to Equity History and Analysis

Debt Level: PH's net debt to equity ratio (123.2%) is considered high.

Reducing Debt: PH's debt to equity ratio has increased from 111.4% to 129.6% over the past 5 years.

Debt Coverage: PH's debt is well covered by operating cash flow (21.3%).

Interest Coverage: PH's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet


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Dividend

What is Parker-Hannifin current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.80%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PH's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: PH's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (3.97%).


Stability and Growth of Payments

Stable Dividend: PH's dividends per share have been stable in the past 10 years.

Growing Dividend: PH's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.2%), PH's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (30.9%), PH's dividend payments are well covered by cash flows.


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Management

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

4.8yrs

Average management tenure


CEO

Tom Williams (63 yo)

7.5yrs

Tenure

US$17,034,500

Compensation

Mr. Thomas L. Williams, also known as Tom, has been Chief Executive Officer, President and Director of CLARCOR Inc. since February 28, 2017. Mr. Williams has been the Chief Executive Officer of Parker-Hann...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD17.03M) is above average for companies of similar size in the US market ($USD12.86M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PH's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: PH's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PH insiders have only sold shares 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

Parker-Hannifin Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Parker-Hannifin Corporation
  • Ticker: PH
  • Exchange: NYSE
  • Founded: 1917
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: US$37.967b
  • Shares outstanding: 128.37m
  • Website: https://www.parker.com

Number of Employees


Location

  • Parker-Hannifin Corporation
  • 6035 Parkland Boulevard
  • Cleveland
  • Ohio
  • 44124-4141
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/19 00:00
End of Day Share Price2022/08/19 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.