Parker Hannifin Corp

Industrials
Metal Fabrications
www.parker.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $89.54B
PE 31
Debt $10.19B
Cash $371.07M
EV $99.36B
FCF $3.08B

Earnings

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Sales & Net Margins

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Earnings	$2.89B
EBIT	$4.15B
ROE	22%
ROA	14%
FCF	$3.08B
Equity	$12.90B
Growth Stability	88%
PE	30.96
PEG	1.76
PB	6.94
P/FCF	29.07
P/S	4.48
Price/Cash	0
Debt/Equity	0.79
Debt/FCF	3.31
Net Margins	14%
Gross Margins	36%
Op. Margins	21%
Earnings CAGR	14%
Sales Growth YoY	1%
Sales Growth QoQ	-5%
Sales CAGR	6%
FCF CAGR	14%
Equity CAGR	10%
Earnings Stability	0.8
Earnings Growth YoY	7%
Earnings Growth QoQ	-11%
Earnings CAGR 5Y	18%

Sales CAGR 5Y	10%
FCF CAGR 5Y	11%
Equity CAGR 5Y	16%
Earnings CAGR 3Y	12%
Sales CAGR 3Y	12%
FCF CAGR 3Y	19%
Equity CAGR 3Y	16%
Market Cap	$89.54B
Revenue	$19.99B
Dividend Yield	1%
Payout Ratio	28%
Assets	$29.60B
Total Debt	$10.19B
Cash	$371.07M
Shares Outstanding	128.62M
EV	99.36B
Earnings Score	93%
Moat Score	95%
Safety Score	89%
Final Score	92%
Working Capital	-304.33M
Current Ratio	0.96
Gross Profit	$7.18B
Shares Growth 3y	0%
Equity Growth QoQ	7%
Equity Growth YoY	22%

Assets & ROA

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Stockholders Equity & ROE

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Parker Hannifin is an industrial conglomerate operating two segments: diversified industrial, which serves a variety of end markets, and aerospace systems, which sells engine and actuation components. The diversified industrial segment consists of six groups, including engineered materials (sealing devices), filtration (filters and systems monitoring and removing contaminants from liquids and gases), fluid connectors (valves, couplings, and other fittings), instrumentation (flow manufacturing components and fluid control applications), and motion systems (hydraulic, pneumatic, and electromechanical components in industrial machinery and equipment). The segment boasts 15,500 independent distributors, and about 40% of its business occurs outside the United States.

SEC Filings

Direct access to Parker Hannifin Corp (PH) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31

Sector Comparison

How does Parker Hannifin Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Parker Hannifin Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 14%

Stability 80%

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Parker Hannifin Corp Discounted Cash Flow

Fully customizable DCF calculator online for Parker Hannifin Corp.

Years

Calculation mode

= $84B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$3.1B	$3.5B	$4B	$4.6B	$5.3B	$6.1B	$6.9B	$7.9B	$9.1B	$10B	$12B	$119B
DCF		$3.2B	$3.3B	$3.5B	$3.6B	$3.8B	$3.9B	$4.1B	$4.2B	$4.4B	$4.6B	$46B
Value	$84B

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	06/2024	TTM
Net Margins	8%	7%	8%	7%	11%	9%	12%	8%	11%	14%	14%
ROA	-	13%	12%	15%	14%	10%	12%	11%	11%	14%	14%
ROE	-	18%	19%	18%	25%	20%	21%	15%	20%	24%	22%

Good Net Margins (14.24%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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	06/2024	TTM
Debt over FCF	-	3.03	5.82	3.74	4.63	4.65	2.79	5.33	5.59	3.96	3.31
Debt over Equity	0.62	0.68	1.21	0.86	1.19	1.39	0.78	1.33	1.41	0.98	0.79
Growth Stability	-	-	-	100%	100%	100%	100%	88%	100%	100%	88%

Neutral Debt/FCF ratio (3.31)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.79)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (88%)

The company has a stability in its earnings that is not too good nor too bad.

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	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	-11%	6%	19%	0%	-4%	5%	11%	20%	5%	10%
Earnings YoY growth	-	-20%	22%	8%	43%	-20%	45%	-25%	58%	37%	18%
Equity YoY growth	-	-10%	15%	11%	2%	3%	37%	5%	17%	17%	16%
FCF YoY growth	-	-6%	8%	23%	13%	20%	29%	-6%	18%	15%	11%