Parker-Hannifin
Market Cap
US$35.4b
Last Updated
2021/01/23 23:25 UTC
Data Sources
Company Financials +
Executive Summary
Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer with mediocre balance sheet.
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
Stable Share Price: PH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: PH's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-3.5%
PH
1.4%
US Machinery
2.3%
US Market
1 Year Return
38.8%
PH
27.5%
US Machinery
23.8%
US Market
Return vs Industry: PH exceeded the US Machinery industry which returned 27.5% over the past year.
Return vs Market: PH exceeded the US Market which returned 23.7% over the past year.
Shareholder returns
| PH | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.5% | 1.4% | 2.3% |
| 30 Day | 2.1% | 6.6% | 4.8% |
| 90 Day | 21.7% | 16.1% | 14.5% |
| 1 Year | 41.3%38.8% | 30.7%27.5% | 26.6%23.8% |
| 3 Year | 38.6%31.2% | 29.1%19.9% | 45.0%35.4% |
| 5 Year | 210.9%183.2% | 169.2%139.5% | 126.2%101.0% |
Long-Term 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 St
Parker-Hannifin (NYSE:PH) Has Gifted Shareholders With A Fantastic 263% Total Return On Their Investment2 weeks ago | Simply Wall St
Does Parker-Hannifin's (NYSE:PH) Statutory Profit Adequately Reflect Its Underlying Profit?1 month ago | Simply Wall St
Should You Be Impressed By Parker-Hannifin Corporation's (NYSE:PH) ROE?Valuation
Is Parker-Hannifin undervalued compared to its fair value and its price relative to the market?
6.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PH ($275.17) is trading below our estimate of fair value ($294.96)
Significantly Below Fair Value: PH is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PH is good value based on its PE Ratio (29.7x) compared to the US Machinery industry average (33x).
PE vs Market: PH is poor value based on its PE Ratio (29.7x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: PH is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: PH is overvalued based on its PB Ratio (5.4x) compared to the US Machinery industry average (3.1x).
Next Steps
Future Growth
How is Parker-Hannifin forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
16.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PH's forecast earnings growth (16.4% per year) is above the savings rate (2%).
Earnings vs Market: PH's earnings (16.4% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: PH's earnings are forecast to grow, but not significantly.
Revenue vs Market: PH's revenue (6.6% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: PH's revenue (6.6% 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 (23.3%)
Next Steps
Past Performance
How has Parker-Hannifin performed over the past 5 years?
12.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PH has high quality earnings.
Growing Profit Margin: PH's current net profit margins (8.7%) are lower than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: PH's earnings have grown by 12% 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 (-19.4%) over the past year, making it difficult to compare to the Machinery industry average (-15.5%).
Return on Equity
High ROE: PH's Return on Equity (18.2%) is considered low.
Next Steps
Financial Health
How is Parker-Hannifin's financial position?
Financial Position Analysis
Short Term Liabilities: PH's short term assets ($4.9B) exceed its short term liabilities ($3.3B).
Long Term Liabilities: PH's short term assets ($4.9B) do not cover its long term liabilities ($9.9B).
Debt to Equity History and Analysis
Debt Level: PH's debt to equity ratio (119.2%) is considered high.
Reducing Debt: PH's debt to equity ratio has increased from 69.1% to 119.2% over the past 5 years.
Debt Coverage: PH's debt is well covered by operating cash flow (30.2%).
Interest Coverage: PH's interest payments on its debt are well covered by EBIT (6.9x coverage).
Balance Sheet
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Dividend
What is Parker-Hannifin current dividend yield, its reliability and sustainability?
1.28%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PH's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: PH's dividend (1.28%) is low compared to the top 25% of dividend payers in the US market (3.85%).
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 (38%), 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 (25.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.9yrs
Average management tenure
CEO
Tom Williams (61 yo)
5.92yrs
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 ($USD10.57M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5.92yrs | US$18.86m | 0.13% $ 46.8m | |
| President | 6yrs | US$10.30m | 0.11% $ 37.3m | |
| VP, General Counsel & Secretary | 6.5yrs | US$2.95m | 0.016% $ 5.7m | |
| VP & President of Engineered Materials Group | 1.92yrs | US$2.93m | 0.019% $ 6.7m | |
| Executive VP & CFO | no data | no data | 0.0061% $ 2.2m | |
| Vice President of Corporate Finance | 6.25yrs | no data | no data | |
| Chief Technology & Innovation Officer | no data | no data | 0.0015% $ 517.5k | |
| VP & Chief Information Officer | 2.17yrs | no data | 0.0013% $ 471.4k | |
| Vice President of Global Sales & Marketing | 3.17yrs | no data | no data | |
| Executive Vice President of Human Resources & External Affairs | 5yrs | no data | 0.013% $ 4.6m | |
| VP & President of the Aerospace Group | 8.5yrs | no data | 0.060% $ 21.4m | |
| VP & President of Filtration Group | 6.08yrs | US$4.07m | 0.017% $ 6.2m |
5.9yrs
Average Tenure
55yo
Average Age
Experienced Management: PH's management team is seasoned and experienced (5.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5.92yrs | US$18.86m | 0.13% $ 46.8m | |
| President | 6yrs | US$10.30m | 0.11% $ 37.3m | |
| Independent Director | 19yrs | US$319.21k | 0.0074% $ 2.6m | |
| Independent Director | 16.25yrs | US$332.55k | 0.0045% $ 1.6m | |
| Independent Lead Director | no data | US$370.88k | 0.011% $ 3.8m | |
| Independent Director | 14yrs | US$336.88k | 0.0090% $ 3.2m | |
| Independent Director | 10.42yrs | US$310.88k | 0.0051% $ 1.8m | |
| Independent Director | 2yrs | US$320.49k | 0.0013% $ 443.0k | |
| Independent Director | 4.75yrs | US$311.05k | 0.0036% $ 1.3m | |
| Independent Director | 7.42yrs | US$308.88k | 0.0065% $ 2.3m |
7.4yrs
Average Tenure
60yo
Average Age
Experienced Board: PH's board of directors are considered experienced (7.4 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 company bio, 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$35.442b
- Shares outstanding: 128.80m
- Website: https://www.parker.com
Number of Employees
Location
- Parker-Hannifin Corporation
- 6035 Parkland Boulevard
- Cleveland
- Ohio
- 44124-4141
- United States
Listings
| 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 |
| PAR | XTRA (XETRA Trading Platform) | 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 |
Biography
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, Di...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 23:25 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/06/30 |
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.