Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide.
Established dividend payer and good value.
Share Price & News
How has Parker-Hannifin's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PH's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: PH underperformed the US Machinery industry which returned -22.4% over the past year.
Return vs Market: PH underperformed the US Market which returned -10.7% over the past year.
Price Volatility Vs. Market
How volatile is Parker-Hannifin's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StWhat Is Parker-Hannifin's (NYSE:PH) P/E Ratio After Its Share Price Tanked?
2 weeks ago | Simply Wall StShould You Be Pleased About The CEO Pay At Parker-Hannifin Corporation's (NYSE:PH)
3 weeks ago | Simply Wall StRead This Before You Buy Parker-Hannifin Corporation (NYSE:PH) Because Of Its P/E Ratio
Is Parker-Hannifin undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PH ($129.57) is trading below our estimate of fair value ($201.76)
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 (12.2x) compared to the Machinery industry average (15.5x).
PE vs Market: PH is good value based on its PE Ratio (12.2x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: PH is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: PH is overvalued based on its PB Ratio (2.6x) compared to the US Machinery industry average (1.6x).
How is Parker-Hannifin forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PH's forecast earnings growth (11.6% per year) is above the savings rate (1.7%).
Earnings vs Market: PH's earnings (11.6% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: PH's earnings are forecast to grow, but not significantly.
Revenue vs Market: PH's revenue (4% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: PH's revenue (4% 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 (20%)
How has Parker-Hannifin performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PH has high quality earnings.
Growing Profit Margin: PH's current net profit margins (9.6%) are lower than last year (9.7%).
Past Earnings Growth Analysis
Earnings Trend: PH's earnings have grown by 10% 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 (-2.7%) over the past year, making it difficult to compare to the Machinery industry average (-2%).
Return on Equity
High ROE: Whilst PH's Return on Equity (21.58%) is high, this metric is skewed due to their high level of debt.
How is Parker-Hannifin's financial position?
Financial Position Analysis
Short Term Liabilities: PH's short term assets ($5.7B) exceed its short term liabilities ($4.1B).
Long Term Liabilities: PH's short term assets ($5.7B) do not cover its long term liabilities ($10.6B).
Debt to Equity History and Analysis
Debt Level: PH's debt to equity ratio (153.7%) is considered high.
Reducing Debt: PH's debt to equity ratio has increased from 51.7% to 153.7% over the past 5 years.
Debt Coverage: PH's debt is well covered by operating cash flow (20.7%).
Interest Coverage: PH's interest payments on its debt are well covered by EBIT (9.6x coverage).
Inventory Level: PH has a high level of physical assets or inventory.
Debt Coverage by Assets: PH's debt is not covered by short term assets (assets are 0.6x debt).
What is Parker-Hannifin's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PH's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: PH's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (5.37%).
Stability and Growth of Payments
Stable Dividend: PH's dividends per share have been stable in the past 10 years.
Growing Dividend: PH's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (31.9%), PH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PH's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Williams (60yo)
Mr. Thomas L. Williams, also known as Tom, has been Chief Executive Officer, President and Director of CLARCOR Inc. since February 28, 2017. Mr. Williams has been the Chief Executive Officer of Parker-Hann ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD17.47M) is above average for companies of similar size in the US market ($USD11.77M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
|Chairman & CEO||5.17yrs||US$17.47m||0.10% $15.4m|
|Executive VP of Finance & Administration and CFO||3yrs||US$6.91m||0.021% $3.1m|
|VP & President of Filtration Group||5.33yrs||US$4.07m||0.017% $2.6m|
|VP & President of Motion Systems Group||no data||US$3.77m||0.0097% $1.4m|
|Vice President of Corporate Finance||5.5yrs||no data||no data|
|VP and Chief Technology & Innovation Officer||no data||no data||0.021% $3.1m|
|VP & Chief Information Officer||1.42yrs||no data||0.00062% $92.4k|
|VP, General Counsel & Secretary||5.75yrs||US$2.90m||0.014% $2.1m|
|Vice President of Global Sales & Marketing||2.42yrs||no data||no data|
Experienced Management: PH's management team is seasoned and experienced (5.2 years average tenure).
|Chairman & CEO||5.17yrs||US$17.47m||0.10% $15.4m|
|Independent Director||18.25yrs||US$296.30k||0.0076% $1.1m|
|Independent Director||9.67yrs||US$270.97k||0.0080% $1.2m|
|Independent Director||15.5yrs||US$280.97k||0.0087% $1.3m|
|Lead Director||no data||US$336.30k||0.0094% $1.4m|
|Independent Director||13.25yrs||US$297.30k||0.0099% $1.5m|
|Independent Director||9.67yrs||US$272.97k||0.0059% $873.2k|
|Independent Director||4yrs||US$272.98k||0.0022% $320.4k|
|Independent Director||6.67yrs||US$277.97k||0.0051% $758.5k|
Experienced Board: PH's board of directors are considered experienced (9.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Parker-Hannifin Corporation's company bio, employee growth, exchange listings and data sources
- Name: Parker-Hannifin Corporation
- Ticker: PH
- Exchange: NYSE
- Founded: 1917
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$14.902b
- Shares outstanding: 128.36m
- Website: https://www.parker.com
Number of Employees
- Parker-Hannifin Corporation
- 6035 Parkland Boulevard
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PH||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|PAR||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|0KFZ||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|PH *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1968|
|PAR||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Jan 1968|
|P1HC34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REPR 1 COM||BR||BRL||Jan 2020|
Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. It operates in two segments, Diversified Industrial and Aerospace Systems. The Diversified Industrial segment offers static and dynamic sealing devices; 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. This segment sells its products to original equipment manufacturers (OEMs) and distributors who serve the replacement markets in manufacturing, packaging, processing, transportation, mobile construction, refrigeration and air conditioning, agricultural, and military machinery and equipment industries. The Aerospace Systems segment offers products for use in commercial and military airframe and engine programs, such as control actuation systems and components, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inerting systems, hydraulic systems and components, lubrication components, pneumatic control components, power conditioning and management systems, thermal management products, and wheels and brakes, as well as fluid metering, delivery, and atomization devices. This segment markets its products directly to OEMs and end users. The company markets its products through direct-sales employees, independent distributors, and sales representatives. Parker-Hannifin Corporation was founded in 1917 and is headquartered in Cleveland, Ohio.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/02 11:43|
|End of Day Share Price||2020/04/01 00:00|
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.