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PH

Parker-HannifinNYSE:PH Stock Report

Market Cap

US$36.8b

7D

0.5%

1Y

48.6%

Updated

23 Sep, 2021

Data

Company Financials +
PH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance6/6
Financial Health3/6
Dividends5/6

PH Overview

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

Parker-Hannifin Competitors

Fortive

NYSE:FTV

US$26.2b

Ingersoll Rand

NYSE:IR

US$22.2b

Pentair

NYSE:PNR

US$12.5b

Snap-on

NYSE:SNA

US$11.4b

Price History & Performance

Summary of all time highs, changes and price drops for Parker-Hannifin
Historical stock prices
Current Share PriceUS$291.10
52 Week HighUS$192.25
52 Week LowUS$324.68
Beta1.77
1 Month Change-2.63%
3 Month Change-3.53%
1 Year Change48.58%
3 Year Change56.09%
5 Year Change134.78%
Change since IPO3,590.00%

Recent News & Updates

Shareholder Returns

PHUS MachineryUS Market
7D0.5%-0.7%-0.5%
1Y48.6%39.0%37.5%

Return vs Industry: PH exceeded the US Machinery industry which returned 37% over the past year.

Return vs Market: PH exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is PH's price volatile compared to industry and market?
PH volatility
PH Beta1.77
Industry Beta1.25
Market Beta1

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

Volatility Over Time: PH's weekly volatility (3%) 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$36.85b
Earnings (TTM)US$1.75b
Revenue (TTM)US$14.35b

21.5x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PH income statement (TTM)
RevenueUS$14.35b
Cost of RevenueUS$10.41b
Gross ProfitUS$3.93b
ExpensesUS$2.19b
EarningsUS$1.75b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)13.54
Gross Margin27.41%
Net Profit Margin12.17%
Debt/Equity Ratio78.3%

How did PH perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

27%

Payout Ratio

Valuation

Is Parker-Hannifin undervalued compared to its fair value and its price relative to the market?

23.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PH ($291.1) is trading below our estimate of fair value ($381.5)

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


Price To Earnings Ratio

PE vs Industry: PH is good value based on its PE Ratio (21.5x) compared to the US Machinery industry average (29x).

PE vs Market: PH is poor value based on its PE Ratio (21.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: PH is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: PH is overvalued based on its PB Ratio (4.5x) compared to the US Machinery industry average (2.7x).


Future Growth

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

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PH's forecast earnings growth (9.3% per year) is above the savings rate (2%).

Earnings vs Market: PH's earnings (9.3% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: PH's revenue (5.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: PH's revenue (5.7% 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 high in 3 years time (21.9%)


Past Performance

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

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PH has high quality earnings.

Growing Profit Margin: PH's current net profit margins (12.2%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: PH's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: PH's earnings growth over the past year (45.3%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: PH earnings growth over the past year (45.3%) exceeded the Machinery industry 22.1%.


Return on Equity

High ROE: PH's Return on Equity (20.8%) is considered high.


Financial Health

How is Parker-Hannifin's financial position?


Financial Position Analysis

Short Term Liabilities: PH's short term assets ($5.6B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: PH's short term assets ($5.6B) do not cover its long term liabilities ($8.8B).


Debt to Equity History and Analysis

Debt Level: PH's debt to equity ratio (78.3%) is considered high.

Reducing Debt: PH's debt to equity ratio has increased from 65.9% to 78.3% over the past 5 years.

Debt Coverage: PH's debt is well covered by operating cash flow (39.1%).

Interest Coverage: PH's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet


Dividend

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

1.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PH's dividend (1.42%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: PH's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.1%), PH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PH's dividends in 3 years are forecast to be well covered by earnings (22.4% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Tom Williams (62 yo)

6.58yrs

Tenure

US$18,862,861

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 ($USD18.86M) is above average for companies of similar size in the US market ($USD11.36M).

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 (3.8 years average tenure).


Board Members

Experienced Board: PH's board of directors are considered experienced (5.7 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

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
  • Market Cap: US$36.846b
  • Shares outstanding: 129.10m
  • 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 Analysis2021/09/23 22:56
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.