Parker-Hannifin
Market Cap
US$27.2b
Last Updated
2020/02/16 23:41 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.
Snowflake Analysis
Established 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.9%
PH
1.6%
US Machinery
1.8%
US Market
1 Year Return
22.0%
PH
11.4%
US Machinery
20.1%
US Market
Return vs Industry: PH exceeded the US Machinery industry which returned 11.4% over the past year.
Return vs Market: PH exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| PH | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 1.6% | 1.8% |
| 30 Day | 2.3% | -2.0% | 1.4% |
| 90 Day | 7.8% | 1.9% | 8.8% |
| 1 Year | 24.4%22.0% | 13.4%11.4% | 22.7%20.1% |
| 3 Year | 45.1%37.7% | 37.2%28.4% | 50.1%40.4% |
| 5 Year | 88.7%71.3% | 62.9%43.6% | 72.9%53.9% |
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
Don't Ignore The Fact That This Insider Just Sold Some Shares In Parker-Hannifin Corporation (NYSE:PH)2 weeks ago | Simply Wall St
Parker-Hannifin Corporation (NYSE:PH)'s Could Be A Buy For Its Upcoming Dividend2 weeks ago | Simply Wall St
At US$205, Is It Time To Put Parker-Hannifin Corporation (NYSE:PH) On Your Watch List?Valuation
Is Parker-Hannifin undervalued compared to its fair value and its price relative to the market?
19.9x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PH ($211.84) is trading above our estimate of fair value ($211.46)
Significantly Below Fair Value: PH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PH is good value based on its PE Ratio (19.9x) compared to the Machinery industry average (21.4x).
PE vs Market: PH is poor value based on its PE Ratio (19.9x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: PH is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: PH is overvalued based on its PB Ratio (4.3x) compared to the US Machinery industry average (2.2x).
Next Steps
Future Growth
How is Parker-Hannifin forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
14.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PH's forecast earnings growth (14.1% per year) is above the savings rate (1.7%).
Earnings vs Market: PH's earnings (14.1% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: PH's earnings are forecast to grow, but not significantly.
Revenue vs Market: PH's revenue (5% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: PH's revenue (5% 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 (20.9%)
Next Steps
Past Performance
How has Parker-Hannifin performed over the past 5 years?
10.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PH has high quality earnings.
Growing Profit Margin: PH's current net profit margins (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 (2.1%).
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.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
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).
Balance Sheet
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).
Next Steps
Dividend
What is Parker-Hannifin's current dividend yield, its reliability and sustainability?
1.66%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PH's dividend (1.66%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: PH's dividend (1.66%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 (27.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.0yrs
Average management tenure
CEO
Thomas Williams (60yo)
5yrs
Tenure
US$17,472,500
Compensation
Mr. Thomas L. Williams, also known as Tom, has been Chief Executive Officer, President and Director of CLARCOR Inc. since February 28, 2017. Mr. Williams has been the Chief Executive Officer of Parker-Hann ...
CEO Compensation Analysis
Compensation vs Market: Thomas's total compensation ($USD17.47M) is above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Thomas's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5yrs | US$17.47m | 0.10% $28.1m | |
| President | 5.1yrs | US$11.77m | 0.082% $22.3m | |
| Executive VP of Finance & Administration and CFO | 2.8yrs | US$6.91m | 0.021% $5.7m | |
| VP & President of Filtration Group | 5.2yrs | US$4.07m | 0.017% $4.7m | |
| VP & President of Motion Systems Group | 0yrs | US$3.77m | 0.0097% $2.6m | |
| Vice President of Corporate Finance | 5.3yrs | no data | no data | |
| VP and Chief Technology & Innovation Officer | 0yrs | no data | 0.021% $5.7m | |
| VP & Chief Information Officer | 1.3yrs | no data | 0.00062% $168.6k | |
| VP, General Counsel & Secretary | 5.6yrs | US$2.90m | 0.014% $3.8m | |
| Vice President of Global Sales & Marketing | 2.3yrs | no data | no data |
5.0yrs
Average Tenure
56yo
Average Age
Experienced Management: PH's management team is seasoned and experienced (5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5yrs | US$17.47m | 0.10% $28.1m | |
| President | 5.1yrs | US$11.77m | 0.082% $22.3m | |
| Independent Director | 18.1yrs | US$296.30k | 0.0076% $2.1m | |
| Independent Director | 9.5yrs | US$270.97k | 0.0080% $2.2m | |
| Independent Director | 15.3yrs | US$280.97k | 0.0087% $2.4m | |
| Lead Director | 0yrs | US$336.30k | 0.0094% $2.6m | |
| Independent Director | 13.1yrs | US$297.30k | 0.0099% $2.7m | |
| Independent Director | 9.5yrs | US$272.97k | 0.0059% $1.6m | |
| Independent Director | 3.8yrs | US$272.98k | 0.0022% $584.6k | |
| Independent Director | 6.5yrs | US$277.97k | 0.0051% $1.4m |
9.5yrs
Average Tenure
61.5yo
Average Age
Experienced Board: PH's board of directors are considered experienced (9.5 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$27.192b
- Shares outstanding: 128.36m
- Website: https://www.parker.com
Number of Employees
Location
- Parker-Hannifin Corporation
- 6035 Parkland Boulevard
- Cleveland
- Ohio
- 44124
- 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 |
| 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. 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 | 2020/02/16 23:41 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.