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Parker-Hannifin

NYSE:PH
Snowflake Description

Outstanding track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PH
NYSE
$22B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The last earnings update was 67 days ago. More info.


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PH Share Price and Events
7 Day Returns
1.2%
NYSE:PH
0.6%
US Machinery
0.8%
US Market
1 Year Returns
6.4%
NYSE:PH
6%
US Machinery
4.8%
US Market
PH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Parker-Hannifin (PH) 1.2% 2.2% -11.1% 6.4% 48.3% 36.4%
US Machinery 0.6% 4.7% -0.5% 6% 46.6% 28.8%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • PH matched the Machinery industry (6%) over the past year.
  • PH outperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
PH
Industry
5yr Volatility vs Market

PH Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Parker-Hannifin to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Parker-Hannifin.

NYSE:PH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.086 (1 + (1- 21%) (24.63%))
1.199
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.199 * 5.96%)
9.88%

Discounted Cash Flow Calculation for NYSE:PH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Parker-Hannifin is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:PH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.88%)
2020 1,712.32 Analyst x11 1,558.38
2021 1,798.46 Analyst x7 1,489.63
2022 2,152.90 Analyst x2 1,622.90
2023 2,316.75 Est @ 7.61% 1,589.40
2024 2,459.14 Est @ 6.15% 1,535.42
2025 2,585.08 Est @ 5.12% 1,468.95
2026 2,698.93 Est @ 4.4% 1,395.77
2027 2,804.24 Est @ 3.9% 1,319.85
2028 2,903.80 Est @ 3.55% 1,243.85
2029 2,999.74 Est @ 3.3% 1,169.43
Present value of next 10 years cash flows $14,393.58
NYSE:PH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,999.74 × (1 + 2.73%) ÷ (9.88% – 2.73%)
$43,111.32
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $43,111.32 ÷ (1 + 9.88%)10
$16,806.62
NYSE:PH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $14,393.58 + $16,806.62
$31,200.20
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $31,200.20 / 128.29
$243.21
NYSE:PH Discount to Share Price
Calculation Result
Value per share (USD) From above. $243.21
Current discount Discount to share price of $167.76
= -1 x ($167.76 - $243.21) / $243.21
31%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Parker-Hannifin is available for.
Intrinsic value
31%
Share price is $167.76 vs Future cash flow value of $243.21
Current Discount Checks
For Parker-Hannifin to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Parker-Hannifin's share price is below the future cash flow value, and 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Parker-Hannifin's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Parker-Hannifin's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $11.08
NYSE:PH Share Price ** NYSE (2019-07-15) in USD $167.76
United States of America Machinery Industry PE Ratio Median Figure of 98 Publicly-Listed Machinery Companies 21.3x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Parker-Hannifin.

NYSE:PH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PH Share Price ÷ EPS (both in USD)

= 167.76 ÷ 11.08

15.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Parker-Hannifin's expected growth come at a high price?
Raw Data
NYSE:PH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
4.9%per year
United States of America Machinery Industry PEG Ratio Median Figure of 79 Publicly-Listed Machinery Companies 1.54x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:PH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.14x ÷ 4.9%

3.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Parker-Hannifin is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Parker-Hannifin's assets?
Raw Data
NYSE:PH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $46.85
NYSE:PH Share Price * NYSE (2019-07-15) in USD $167.76
United States of America Machinery Industry PB Ratio Median Figure of 126 Publicly-Listed Machinery Companies 2.3x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NYSE:PH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PH Share Price ÷ Book Value per Share (both in USD)

= 167.76 ÷ 46.85

3.58x

* Primary Listing of Parker-Hannifin.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Parker-Hannifin is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess Parker-Hannifin's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Parker-Hannifin has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PH Future Performance

 How is Parker-Hannifin expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Parker-Hannifin expected to grow at an attractive rate?
  • Parker-Hannifin's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Parker-Hannifin's earnings growth is positive but not above the United States of America market average.
  • Parker-Hannifin's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PH Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 4.9%
NYSE:PH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 2.4%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 15,969 2,301 2
2021-06-30 14,884 2,193 1,660 12
2020-06-30 14,617 2,051 1,557 18
2019-06-30 14,328 1,924 1,506 18
NYSE:PH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 14,456 1,792 1,452
2018-12-31 14,518 1,685 1,407
2018-09-30 14,417 1,522 1,151
2018-06-30 14,302 1,600 1,061
2018-03-31 13,981 1,414 1,001
2017-12-31 13,351 1,355 874
2017-09-30 12,651 1,427 1,059
2017-06-30 12,029 1,302 983
2017-03-31 11,490 1,296 932
2016-12-31 11,200 1,252 880
2016-09-30 11,235 1,305 822
2016-06-30 11,361 1,211 807

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Parker-Hannifin's earnings are expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
  • Parker-Hannifin's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Parker-Hannifin Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 12.94 13.75 12.21 6.00
2020-06-30 11.95 12.50 11.00 12.00
2019-06-30 11.38 11.60 11.27 11.00
NYSE:PH Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 11.08
2018-12-31 10.65
2018-09-30 8.67
2018-06-30 7.98
2018-03-31 7.52
2017-12-31 6.56
2017-09-30 7.94
2017-06-30 7.37
2017-03-31 6.97
2016-12-31 6.57
2016-09-30 6.11
2016-06-30 5.96

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Parker-Hannifin is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Parker-Hannifin's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Parker-Hannifin has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PH Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Parker-Hannifin's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (45.1% vs 4.1%)
  • Parker-Hannifin's earnings growth has exceeded the US Machinery industry average in the past year (45.1% vs 33.5%).
Earnings and Revenue History
Parker-Hannifin's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Parker-Hannifin Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 14,456.33 1,451.95 1,561.59
2018-12-31 14,518.41 1,406.69 1,611.66
2018-09-30 14,417.04 1,151.12 1,612.62
2018-06-30 14,302.39 1,060.80 1,620.34
2018-03-31 13,981.15 1,000.85 1,622.49
2017-12-31 13,350.70 873.53 1,590.42
2017-09-30 12,650.83 1,058.68 1,520.47
2017-06-30 12,029.31 983.41 1,434.25
2017-03-31 11,490.22 931.90 1,376.69
2016-12-31 11,199.75 880.31 1,321.09
2016-09-30 11,234.54 821.99 1,295.45
2016-06-30 11,360.75 806.84 1,338.31
2016-03-31 11,548.11 744.50 1,389.39
2015-12-31 11,881.76 842.76 1,428.29
2015-09-30 12,311.16 927.03 1,494.85
2015-06-30 12,711.74 1,012.14 1,531.86
2015-03-31 13,092.65 1,133.72 1,566.04
2014-12-31 13,288.75 1,090.79 1,575.09
2014-09-30 13,259.76 1,076.82 1,593.35
2014-06-30 13,215.97 1,041.05 1,595.12
2014-03-31 13,118.79 1,011.17 1,585.82
2013-12-31 13,067.42 1,025.33 1,586.62
2013-09-30 13,026.91 953.00 1,572.58
2013-06-30 13,015.70 948.43 1,551.09
2013-03-31 12,999.14 979.23 1,526.10
2012-12-31 13,085.66 1,034.74 1,524.36
2012-09-30 13,127.00 1,094.55 1,512.61

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Parker-Hannifin has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Parker-Hannifin used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
  • Parker-Hannifin has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Parker-Hannifin's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Parker-Hannifin has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PH Health

 How is Parker-Hannifin's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Parker-Hannifin's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Parker-Hannifin's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Parker-Hannifin Company Filings, last reported 3 months ago.

NYSE:PH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 6,016.05 5,301.51 1,168.92
2018-12-31 5,821.17 5,447.68 1,078.34
2018-09-30 6,107.11 5,110.08 992.91
2018-06-30 5,865.49 4,957.03 855.13
2018-03-31 5,876.28 5,874.10 1,190.74
2017-12-31 5,519.21 6,046.58 1,132.75
2017-09-30 5,530.66 5,932.20 974.56
2017-06-30 5,267.35 5,870.36 924.20
2017-03-31 4,747.73 6,031.32 856.32
2016-12-31 4,530.98 3,235.05 2,205.04
2016-09-30 4,650.59 3,248.96 2,140.56
2016-06-30 4,578.68 3,014.24 2,104.00
2016-03-31 5,026.98 3,251.62 2,104.63
2015-12-31 4,802.72 3,299.16 1,868.18
2015-09-30 4,854.75 3,356.06 1,789.75
2015-06-30 5,107.57 2,947.10 1,914.07
2015-03-31 5,154.94 3,390.07 2,030.71
2014-12-31 5,760.14 2,967.55 1,962.19
2014-09-30 6,582.36 2,184.51 2,037.57
2014-06-30 6,662.81 2,324.76 2,187.26
2014-03-31 6,454.23 2,587.46 2,095.99
2013-12-31 6,298.29 2,724.31 2,139.52
2013-09-30 6,089.77 2,842.08 1,945.62
2013-06-30 5,741.48 2,829.79 1,781.41
2013-03-31 5,412.41 3,023.72 1,677.32
2012-12-31 5,328.99 2,019.24 497.64
2012-09-30 5,152.01 1,776.38 436.13
  • Parker-Hannifin's level of debt (88.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (40% vs 88.1% today).
  • Debt is well covered by operating cash flow (33.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.9x coverage).
X
Financial health checks
We assess Parker-Hannifin's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Parker-Hannifin has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.1%
Current annual income from Parker-Hannifin dividends. Estimated to be 1.97% next year.
If you bought $2,000 of Parker-Hannifin shares you are expected to receive $42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Parker-Hannifin's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Parker-Hannifin's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 75 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 3.04 1.00
2021-06-30 3.42 8.00
2020-06-30 3.26 11.00
2019-06-30 3.11 11.00
NYSE:PH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 3.520 2.104
2019-01-24 3.040 1.755
2018-10-24 3.040 1.933
2018-08-16 3.040 1.734
2018-04-19 3.040 1.814
2018-01-25 2.640 1.467
2017-10-25 2.640 1.369
2017-08-17 2.640 1.550
2017-04-20 2.640 1.649
2017-01-26 2.640 1.700
2016-10-26 2.520 1.827
2016-08-18 2.520 2.043
2016-04-22 2.520 2.220
2016-01-21 2.520 2.412
2015-10-28 2.520 2.562
2015-08-13 2.520 2.428
2015-04-22 2.520 2.145
2015-01-22 2.520 2.088
2014-10-22 2.520 1.999
2014-08-14 1.920 1.694
2014-04-25 1.920 1.562
2014-01-30 1.920 1.609
2013-10-23 1.800 1.499
2013-08-15 1.800 1.702
2013-04-25 1.800 1.837
2013-01-25 1.800 1.945
2012-10-24 1.640 1.958
2012-08-16 1.640 1.993
2012-04-24 1.640 2.042
2012-01-26 1.560 1.812
2011-10-26 1.480 1.845
2011-08-18 1.480 2.155
2011-04-27 1.480 1.776
2011-01-27 1.280 1.405
2010-10-28 1.160 1.383
2010-08-12 1.080 1.596
2010-04-15 1.040 1.675
2010-01-28 1.000 1.617
2009-10-28 1.000 1.802
2009-08-13 1.000 1.941
2009-04-23 1.000 2.239
2009-01-29 1.000 2.812
2008-10-22 1.000 2.599
2008-08-14 1.000 1.900
2008-07-31 1.000 1.593

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Parker-Hannifin's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).
X
Income/ dividend checks
We assess Parker-Hannifin's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Parker-Hannifin afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Parker-Hannifin has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PH Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Thomas Williams
COMPENSATION $18,238,446
AGE 60
TENURE AS CEO 4.4 years
CEO Bio

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-Hannifin Corporation since February 1, 2015 and its Chairman since January 1, 2016. He has been a Director of Goodyear Tire & Rubber Co since February 26, 2019. Mr. Williams served as an Executive Vice President at Parker-Hannifin Corporation from August 15, 2008 to February 1, 2015 and served as its an Operating Officer from November 2006 to February 1, 2015. He served as a Senior Vice President of Parker-annifin Corporation from October 25, 2006 to August 2008; President of Parker Instrumentation Group since March 2005 and Vice President from March 2005 to October 25, 2006. He held various operational leadership positions during his 14-year career with Parker-Hannifin. He served as a Vice President of Operations for the Hydraulics Group at Parker-annifin Corporation from November 2003 to February 2005. He joined Parker Hannifin in 2003. Prior to that, he served at General Electric Company from 1981 to 2003 and served a number of key management positions for four different business groups: GE Capital, Aircraft Engines, Lighting and Locomotives. He served as a General Manager of multi-billion dollar businesses of G.E. He served as General Manager of Global Services of GE Transportation Systems from October 2002 to November 2003. He served as General Manager of Global Sourcing and Components of GE Lighting from November 1999 to October 2002. He had been a Director of Chart Industries, Inc. since May 20, 2008 until May 22, 2019. He serves as Director at Parker-Hannifin Corporation since January 21, 2015. Mr. Williams holds a B.S. degree in Mechanical Engineering from Bucknell University and an MBA from Xavier University.

CEO Compensation
  • Thomas's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Thomas's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Parker-Hannifin management team in years:

4.4
Average Tenure
56
Average Age
  • The tenure for the Parker-Hannifin management team is about average.
Management Team

Thomas Williams

TITLE
Chairman & CEO
COMPENSATION
$18M
AGE
60
TENURE
4.4 yrs

Lee Banks

TITLE
President
COMPENSATION
$9M
AGE
56
TENURE
4.4 yrs

Cathy Suever

TITLE
Executive VP of Finance & Administration and CFO
COMPENSATION
$5M
AGE
61
TENURE
2.3 yrs

Joe Leonti

TITLE
VP, General Counsel & Secretary
COMPENSATION
$3M
AGE
47
TENURE
5 yrs

Rob Malone

TITLE
VP & President of Filtration Group
COMPENSATION
$3M
AGE
56
TENURE
4.6 yrs

Todd Leombruno

TITLE
VP, Controller & Principal Accounting Officer
AGE
49

Robin Davenport

TITLE
Vice President of Corporate Finance
TENURE
4.8 yrs

M. Maxwell

TITLE
VP and Chief Technology & Innovation Officer
AGE
61

Dinu Parel

TITLE
VP & Chief Information Officer
TENURE
0.7 yrs

Aidan Gormley

TITLE
Director of Global Communications & Branding
Board of Directors Tenure

Average tenure and age of the Parker-Hannifin board of directors in years:

8.9
Average Tenure
61.5
Average Age
  • The tenure for the Parker-Hannifin board of directors is about average.
Board of Directors

Lee Banks

TITLE
President
COMPENSATION
$9M
AGE
56
TENURE
4.5 yrs

Candy Obourn

TITLE
Independent Director
COMPENSATION
$314K
AGE
68
TENURE
17.5 yrs

Thomas Williams

TITLE
Chairman & CEO
COMPENSATION
$18M
AGE
60
TENURE
3.5 yrs

Lindy Harty

TITLE
Independent Director
COMPENSATION
$314K
AGE
58
TENURE
12.5 yrs

Jim Wainscott

TITLE
Lead Director
COMPENSATION
$334K
AGE
63

Joe Scaminace

TITLE
Independent Director
COMPENSATION
$294K
AGE
66
TENURE
14.8 yrs

Åke Svensson

TITLE
Independent Director
COMPENSATION
$294K
AGE
67
TENURE
8.9 yrs

Bob Bohn

TITLE
Independent Director
COMPENSATION
$294K
AGE
66
TENURE
8.9 yrs

Kevin Lobo

TITLE
Independent Director
COMPENSATION
$309K
AGE
54
TENURE
5.9 yrs

James Verrier

TITLE
Director
COMPENSATION
$294K
AGE
56
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • Parker-Hannifin individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
31. May 19 Sell Robert Malone Individual 30. May 19 30. May 19 -336 $156.76 $-52,672
04. Mar 19 Sell Andrew Weeks Individual 28. Feb 19 28. Feb 19 -4,520 $176.70 $-798,684
19. Feb 19 Sell Robert Malone Individual 15. Feb 19 15. Feb 19 -1,300 $173.34 $-225,342
14. Feb 19 Sell William Bowman Individual 13. Feb 19 13. Feb 19 -875 $171.82 $-150,341
14. Feb 19 Sell Thomas Gentile Individual 13. Feb 19 13. Feb 19 -319 $171.81 $-54,806
08. Feb 19 Sell Candy Obourn Individual 07. Feb 19 07. Feb 19 -926 $162.18 $-150,178
16. Jan 19 Buy Robert Bohn Individual 01. Jun 18 07. Dec 18 120 $186.29 $20,829
30. Aug 18 Sell William Bowman Individual 29. Aug 18 29. Aug 18 -2,400 $175.36 $-420,864
X
Management checks
We assess Parker-Hannifin's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Parker-Hannifin has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PH News

Simply Wall St News

We Think Parker-Hannifin (NYSE:PH) Can Stay On Top Of Its Debt

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … Either way, since Parker-Hannifin does have more debt than cash, it's worth keeping an eye on its balance sheet. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it.

Simply Wall St -

Are Investors Undervaluing Parker-Hannifin Corporation (NYSE:PH) By 29%?

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $1.61k $1.74k $1.79k $2.13k $2.28k $2.41k $2.53k $2.64k $2.73k $2.83k Growth Rate Estimate Source Analyst x10 Analyst x11 Analyst x7 Analyst x2 Est @ 7.02% Est @ 5.74% Est @ 4.83% Est @ 4.2% Est @ 3.76% Est @ 3.45% Present Value ($, Millions) Discounted @ 9.79% $1.47k $1.44k $1.35k $1.47k $1.43k $1.38k $1.32k $1.25k $1.18k $1.11k Present Value of 10-year Cash Flow (PVCF)= $13.40b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. … NYSE:PH Intrinsic value, June 16th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Is Parker-Hannifin Corporation (NYSE:PH) Potentially Undervalued?

However, given that Parker-Hannifin’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price.

Simply Wall St -

What Makes Parker-Hannifin Corporation (NYSE:PH) A Great Dividend Stock?

Could Parker-Hannifin Corporation (NYSE:PH) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. A slim 2.1% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Parker-Hannifin could have potential. The company also bought back stock equivalent to around 4.4% of market capitalisation this year. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. … Conclusion To summarise, shareholders should always check that Parker-Hannifin's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Is Parker-Hannifin Corporation's (NYSE:PH) 24% ROE Better Than Average?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.24 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Parker-Hannifin Corporation (NYSE:PH) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in Parker-Hannifin Corporation (NYSE:PH). … Parker-Hannifin Insider Transactions Over The Last Year. … That means that even when the share price was below the current price of US$183, an insider wanted to cash in some shares.

Simply Wall St -

Are Parker-Hannifin Corporation’s (NYSE:PH) High Returns Really That Great?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Does Parker-Hannifin Corporation (NYSE:PH) Have A Good P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Parker-Hannifin Corporation's (NYSE:PH) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Why Parker-Hannifin Corporation (NYSE:PH) Could Have A Place In Your Portfolio

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Parker-Hannifin Corporation (NYSE:PH) due to its excellent fundamentals in more than one area.

Simply Wall St -

What Kind Of Shareholder Appears On The Parker-Hannifin Corporation's (NYSE:PH) Shareholder Register?

The big shareholder groups in Parker-Hannifin Corporation (NYSE:PH) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … We also tend to see lower insider ownership in companies that were previously publicly owned.

Simply Wall St -

PH Company Info

Description

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates in two segments, Diversified Industrial and Aerospace Systems. The Diversified Industrial segment provides 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; hydraulic, pneumatic, and electromechanical components and systems for builders and users of industrial and mobile machinery and equipment; and critical flow components for process instrumentation, healthcare, and ultra-high-purity applications, as well as components for use in refrigeration and air conditioning systems, and in fluid control applications for processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment sells its products to original equipment manufacturers and their 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, including control actuation systems and components, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inserting systems, hydraulic systems and components, lubrication components, pneumatic control components, power conditioning and management systems, thermal management products, and wheels and brakes. This segment markets its products directly to original equipment manufacturers and end users. The company markets its products through direct-sales employees, independent distributors, and sales representatives. Parker-Hannifin Corporation was founded in 1918 and is headquartered in Cleveland, Ohio.

Details
Name: Parker-Hannifin Corporation
PH
Exchange: NYSE
Founded: 1918
$21,521,157,529
128,285,393
Website: http://www.parker.com
Address: Parker-Hannifin Corporation
6035 Parkland Boulevard,
Cleveland,
Ohio, 44124,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PH Common Stock New York Stock Exchange US USD 02. Jan 1968
DB PAR Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0KFZ Common Stock London Stock Exchange GB USD 02. Jan 1968
BMV PH * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
57,170
Parker-Hannifin employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 23:44
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.