NYSE:PH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Parker-Hannifin's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

PH

-1.9%

US Machinery

-0.2%

US Market


1 Year Return

-7.1%

PH

-6.8%

US Machinery

1.1%

US Market

PH matched the Machinery industry (-6.8%) over the past year.

PH underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

PHIndustryMarket
7 Day-2.8%-1.9%-0.2%
30 Day7.9%6.4%2.5%
90 Day3.5%-1.2%1.6%
1 Year-5.3%-7.1%-4.8%-6.8%3.4%1.1%
3 Year53.2%45.2%49.2%39.5%45.2%35.8%
5 Year71.5%55.5%55.2%36.1%62.6%44.8%

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

Valuation

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

20%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Parker-Hannifin's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Parker-Hannifin's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Parker-Hannifin is good value based on earnings compared to the US Machinery industry average.

Parker-Hannifin is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Parker-Hannifin is poor value based on expected growth next year.


Price Based on Value of Assets

Parker-Hannifin is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Parker-Hannifin expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Parker-Hannifin's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).

Parker-Hannifin's earnings are expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

Parker-Hannifin's revenue growth is positive but not above the United States of America market average.

Parker-Hannifin's earnings growth is positive but not above the United States of America market average.

Parker-Hannifin's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Parker-Hannifin is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

6.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Parker-Hannifin's year on year earnings growth rate has been positive over the past 5 years.

Parker-Hannifin's 1-year earnings growth exceeds its 5-year average (42.6% vs 6.5%)

Parker-Hannifin's earnings growth has exceeded the US Machinery industry average in the past year (42.6% vs 18.7%).


Return on Equity

Whilst Parker-Hannifin has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Parker-Hannifin used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Parker-Hannifin has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Parker-Hannifin's financial position?


Financial Position Analysis

Parker-Hannifin is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Parker-Hannifin's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Parker-Hannifin's level of debt (119.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (34.9% vs 119.1% today).

Debt is well covered by operating cash flow (24.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

2.03%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Parker-Hannifin's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Parker-Hannifin's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Thomas Williams (60yo)

4.6yrs

Tenure

US$18,238,446

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

Thomas's remuneration is higher than average for companies of similar size in United States of America.

Thomas's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

56yo

Average Age

The tenure for the Parker-Hannifin management team is about average.


Board Age and Tenure

9.1yrs

Average Tenure

61.5yo

Average Age

The tenure for the Parker-Hannifin board of directors is about average.


Insider Trading

Parker-Hannifin individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$123,86013 Sep 19
Thomas Gentile
EntityIndividual
Shares675
Max PriceUS$183.50
SellUS$412,54613 Sep 19
Mark Hart
EntityIndividual
Role
Head of Human Resources
Executive Vice President of Human Resources & External Affairs
Shares2,250
Max PriceUS$183.35
SellUS$151,63113 Sep 19
William Bowman
EntityIndividual
Shares830
Max PriceUS$182.69
SellUS$759,55813 Sep 19
Jennifer Parmentier
EntityIndividual
Shares4,154
Max PriceUS$182.88
SellUS$3,436,09812 Sep 19
Lee Banks
EntityIndividual
Role
Member of the Board of Directors
President
Shares18,989
Max PriceUS$180.95
SellUS$5,801,45411 Sep 19
Thomas Williams
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares32,109
Max PriceUS$180.68
BuyUS$475,17427 Aug 19
Linda Harty
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$158.41
SellUS$52,67231 May 19
Robert Malone
EntityIndividual
Role
Senior Key Executive
VP & President of Filtration Group
Shares336
Max PriceUS$156.76
SellUS$798,68404 Mar 19
Andrew Weeks
EntityIndividual
Shares4,520
Max PriceUS$176.70
SellUS$225,34219 Feb 19
Robert Malone
EntityIndividual
Role
Senior Key Executive
VP & President of Filtration Group
Shares1,300
Max PriceUS$173.34
SellUS$150,34114 Feb 19
William Bowman
EntityIndividual
Shares875
Max PriceUS$171.82
SellUS$54,80614 Feb 19
Thomas Gentile
EntityIndividual
Shares319
Max PriceUS$171.81
SellUS$150,17808 Feb 19
Candy Obourn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares926
Max PriceUS$162.18
BuyUS$20,82916 Jan 19
Robert Bohn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares120
Max PriceUS$186.29

Ownership Breakdown


Management Team

  • Lee Banks (56yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$8.95m
  • M. Maxwell (61yo)

    VP and Chief Technology & Innovation Officer

    • Tenure: 0yrs
  • Thomas Williams (60yo)

    Chairman & CEO

    • Tenure: 4.6yrs
    • Compensation: US$18.24m
  • Rob Malone (56yo)

    VP & President of Filtration Group

    • Tenure: 4.8yrs
    • Compensation: US$2.89m
  • Cathy Suever (61yo)

    Executive VP of Finance & Administration and CFO

    • Tenure: 2.4yrs
    • Compensation: US$5.50m
  • Joe Leonti (47yo)

    VP, General Counsel & Secretary

    • Tenure: 5.2yrs
    • Compensation: US$2.90m
  • Robin Davenport

    Vice President of Corporate Finance

    • Tenure: 4.9yrs
  • Mark Hart (54yo)

    Executive Vice President of Human Resources & External Affairs

    • Tenure: 3.7yrs
  • Michael O'Hara

    Vice President of Global Sales & Marketing

    • Tenure: 1.8yrs
  • Dinu Parel (39yo)

    VP & Chief Information Officer

    • Tenure: 0.8yrs

Board Members

  • Candy Obourn (68yo)

    Independent Director

    • Tenure: 17.7yrs
    • Compensation: US$314.34k
  • Bob Bohn (66yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$294.34k
  • Joe Scaminace (66yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$294.34k
  • Jim Wainscott (63yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$334.34k
  • Lindy Harty (58yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$314.34k
  • Lee Banks (56yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$8.95m
  • Åke Svensson (67yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$294.34k
  • Thomas Williams (60yo)

    Chairman & CEO

    • Tenure: 4.6yrs
    • Compensation: US$18.24m
  • James Verrier (56yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$294.34k
  • Kevin Lobo (54yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$309.34k

Company Information

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


Key Information

  • Name: Parker-Hannifin Corporation
  • Ticker: PH
  • Exchange: NYSE
  • Founded: 1918
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$22.739b
  • Shares outstanding: 128.44m
  • Website: https://www.parker.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
PARDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0KFZLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
PH *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968

Biography

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 Indu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:44
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.