Parker Hannifin Corp
PH
Miscellaneous Fabricated Metal Products
Mkt Cap
$67.64BPE
24.43Debt
$11.37BCash
$405.5MEV
$78.61BFCF
$2.941BP/E Ratio
24.43Debt
$11.37BCash
$405.5MEV
$78.61BFCF
$2.941BCharts data: {"Earnings":[{"time":"2014-06-29","value":1041048000},{"time":"2015-06-29","value":1012140000},{"time":"2016-06-29","value":806840000},{"time":"2017-06-29","value":983412000},{"time":"2018-06-29","value":1060801000},{"time":"2019-06-29","value":1512364000},{"time":"2020-06-29","value":1206341000},{"time":"2021-06-29","value":1746100000},{"time":"2022-06-29","value":1315605000},{"time":"2023-06-29","value":2082936000}],"Sales":[{"time":"2014-06-29","value":13215971000},{"time":"2015-06-29","value":12711744000},{"time":"2016-06-29","value":11360753000},{"time":"2017-06-29","value":12029312000},{"time":"2018-06-29","value":14302392000},{"time":"2019-06-29","value":14320324000},{"time":"2020-06-29","value":13695520000},{"time":"2021-06-29","value":14347640000},{"time":"2022-06-29","value":15861608000},{"time":"2023-06-29","value":19065194000}],"Net Margins":[{"time":"2014-06-29","value":0.07877196461765844},{"time":"2015-06-29","value":0.07962243418369659},{"time":"2016-06-29","value":0.07101994031557592},{"time":"2017-06-29","value":0.08175130880303047},{"time":"2018-06-29","value":0.07416948158042375},{"time":"2019-06-29","value":0.10560962168174408},{"time":"2020-06-29","value":0.08808289133964975},{"time":"2021-06-29","value":0.12169945719295995},{"time":"2022-06-29","value":0.0829427256051215},{"time":"2023-06-29","value":0.10925333358789845}],"Assets":[{"time":"2014-06-29","value":13274362000},{"time":"2015-06-29","value":12295037000},{"time":"2016-06-29","value":12056738000},{"time":"2017-06-29","value":15489904000},{"time":"2018-06-29","value":15320087000},{"time":"2019-06-29","value":17576690000},{"time":"2020-06-29","value":19738189000},{"time":"2021-06-29","value":20341200000},{"time":"2022-06-29","value":25943943000},{"time":"2023-06-29","value":29964472000}],"Stockholders Equity":[{"time":"2014-06-29","value":6662808000},{"time":"2015-06-29","value":5107569000},{"time":"2016-06-29","value":4578678000},{"time":"2017-06-29","value":5267346000},{"time":"2018-06-29","value":5865493000},{"time":"2019-06-29","value":5968152000},{"time":"2020-06-29","value":6128529000},{"time":"2021-06-29","value":8413670000},{"time":"2022-06-29","value":8859920000},{"time":"2023-06-29","value":10338279000}],"ROE":[{"time":"2014-06-29","value":0.15624763613179307},{"time":"2015-06-29","value":0.19816472376584635},{"time":"2016-06-29","value":0.17621680319079},{"time":"2017-06-29","value":0.18669971556833365},{"time":"2018-06-29","value":0.18085453345524408},{"time":"2019-06-29","value":0.25340574435771746},{"time":"2020-06-29","value":0.19684022054884623},{"time":"2021-06-29","value":0.20753131510981535},{"time":"2022-06-29","value":0.14848948974708576},{"time":"2023-06-29","value":0.20147802163203374}],"ROA":[{"time":"2014-06-29","value":0.13486199939401983},{"time":"2015-06-29","value":0.14952634953436902},{"time":"2016-06-29","value":0.13068667495304284},{"time":"2017-06-29","value":0.11557560330909733},{"time":"2018-06-29","value":0.1461596791193157},{"time":"2019-06-29","value":0.13832143594726878},{"time":"2020-06-29","value":0.09963953633233526},{"time":"2021-06-29","value":0.12275544215680491},{"time":"2022-06-29","value":0.11467165958543772},{"time":"2023-06-29","value":0.11360710777750398}]}
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, Diversified Industrial and Aerospace Systems. The Diversified Industrial segment offers sealing, shielding, thermal products and systems, adhesives, coatings, and noise vibration and harshness solutions; 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, 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 build-up ducting, engine exhaust nozzles and assemblies, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inerting systems, hydraulic systems and components, lubrication components, pilot controls, pneumatic control components, 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. The company was founded in 1917 and is headquartered in Cleveland, Ohio.
DCF
Discounted Cash Flow Valuation of Parker Hannifin Corp
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $2.941B | $3.364B | $3.813B | $4.282B | $4.764B | $5.25B | $5.732B | $6.198B | $6.637B | $7.038B | $7.39B | $73.9B |
| DCF | $2.925B | $2.883B | $2.815B | $2.724B | $2.61B | $2.478B | $2.33B | $2.17B | $2.001B | $1.827B | $18.27B | |
| Value | $43.03B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 12%
Earnings Stability 76%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 06-2015 | 06-2016 | 06-2017 | 06-2018 | 06-2019 | 06-2020 | 06-2021 | 06-2022 | 06-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 8% | 7.1% | 8.2% | 7.4% | 11% | 8.8% | 12% | 8.3% | 11% | 14% |
| ROA | 15% | 13% | 12% | 15% | 14% | 10% | 12% | 11% | 11% | 14% |
| ROE | 20% | 18% | 19% | 18% | 25% | 20% | 21% | 15% | 20% | 24% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +9.7%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.4%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +12.25%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.6%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +19.81%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -0.57%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 06-2015 | 06-2016 | 06-2017 | 06-2018 | 06-2019 | 06-2020 | 06-2021 | 06-2022 | 06-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 2.92 | 3.03 | 5.82 | 3.74 | 4.63 | 4.65 | 2.79 | 5.33 | 5.59 | 3.87 |
| Debt Equity | 0.62 | 0.68 | 1.21 | 0.86 | 1.19 | 1.39 | 0.78 | 1.33 | 1.41 | 0.98 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 88% | 100% | 88% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 3.87.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.27.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.88.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 06-2016 | 06-2018 | 06-2020 | 06-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 7.7% | 5.9% | 12% | 20% | 2.2% |
| Net Income | 15% | 14% | 20% | 58% | 4.1% |
| Stockholders Equity | 12% | 12% | 19% | 17% | 4% |
| FCF | 14% | 14% | 12% | 18% | 2.3% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +5.92%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +2.23%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +14.45%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +4.15%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +12%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +4.05%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +13.95%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +2.28%.