Parker Hannifin Stock Fundamentals
| PH Stock | USD 772.00 5.80 0.76% |
By evaluating key metrics such as revenue growth, profitability, cash flow trends, and balance sheet strength, investors can better assess Parker Hannifin's long-term financial health and intrinsic value.
As of now, Parker Hannifin's Gross Profit is increasing as compared to previous years. The Parker Hannifin's current Operating Income is estimated to increase to about 4.3 B, while Other Operating Expenses is projected to decrease to under 8.4 B. Parker | Select Account or Indicator | Build AI portfolio with Parker Stock |
Parker Hannifin Company Return On Equity Analysis
Parker Hannifin's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Parker Hannifin Return On Equity | 0.27 |
Most of Parker Hannifin's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Parker Hannifin is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Parker Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Parker Hannifin is extremely important. It helps to project a fair market value of Parker Stock properly, considering its historical fundamentals such as Return On Equity. Since Parker Hannifin's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Parker Hannifin's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Parker Hannifin's interrelated accounts and indicators.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Parker Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Parker Hannifin has a Return On Equity of 0.2741. This is 37.7% lower than that of the Machinery sector and significantly higher than that of the Industrials industry. The return on equity for all United States stocks is 188.42% lower than that of the firm.
Parker Hannifin Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Parker Hannifin's current stock value. Our valuation model uses many indicators to compare Parker Hannifin value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Parker Hannifin competition to find correlations between indicators driving Parker Hannifin's intrinsic value. More Info.Parker Hannifin is rated below average in return on equity category among its peers. It is regarded fourth in return on asset category among its peers reporting about 0.33 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Parker Hannifin is roughly 3.06 . As of now, Parker Hannifin's Return On Equity is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Parker Hannifin's earnings, one of the primary drivers of an investment's value.Parker Hannifin's Earnings Breakdown by Geography
Parker Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Parker Hannifin's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Parker Hannifin could also be used in its relative valuation, which is a method of valuing Parker Hannifin by comparing valuation metrics of similar companies.Parker Hannifin is currently under evaluation in return on equity category among its peers.
Parker Hannifin Current Valuation Drivers
We derive many important indicators used in calculating different scores of Parker Hannifin from analyzing Parker Hannifin's financial statements. These drivers represent accounts that assess Parker Hannifin's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Parker Hannifin's important valuation drivers and their relationship over time.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Market Cap | 39.6B | 31.6B | 50.1B | 64.4B | 57.9B | 60.8B | |
| Enterprise Value | 45.5B | 42.6B | 62.2B | 74.5B | 67.1B | 70.4B |
Parker Hannifin ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Parker Hannifin's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Parker Hannifin's managers, analysts, and investors.Environmental | Governance | Social |
Parker Fundamentals
| Return On Equity | 0.27 | ||||
| Return On Asset | 0.0895 | ||||
| Profit Margin | 0.18 % | ||||
| Operating Margin | 0.22 % | ||||
| Current Valuation | 104.76 B | ||||
| Shares Outstanding | 126.54 M | ||||
| Shares Owned By Insiders | 0.15 % | ||||
| Shares Owned By Institutions | 90.57 % | ||||
| Number Of Shares Shorted | 1.35 M | ||||
| Price To Earning | 24.97 X | ||||
| Price To Book | 7.01 X | ||||
| Price To Sales | 4.92 X | ||||
| Revenue | 19.85 B | ||||
| Gross Profit | 7.35 B | ||||
| EBITDA | 5.42 B | ||||
| Net Income | 3.53 B | ||||
| Cash And Equivalents | 422.03 M | ||||
| Cash Per Share | 4.39 X | ||||
| Total Debt | 9.49 B | ||||
| Debt To Equity | 1.31 % | ||||
| Current Ratio | 2.06 X | ||||
| Book Value Per Share | 108.07 X | ||||
| Cash Flow From Operations | 3.78 B | ||||
| Short Ratio | 2.67 X | ||||
| Earnings Per Share | 27.10 X | ||||
| Price To Earnings To Growth | 3.40 X | ||||
| Target Price | 802.71 | ||||
| Number Of Employees | 57.95 K | ||||
| Beta | 1.35 | ||||
| Market Capitalization | 97.69 B | ||||
| Total Asset | 29.49 B | ||||
| Retained Earnings | 21.77 B | ||||
| Working Capital | 1.13 B | ||||
| Current Asset | 5.21 B | ||||
| Current Liabilities | 2.37 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 1.61 % | ||||
| Net Asset | 29.49 B | ||||
| Last Dividend Paid | 6.69 |
About Parker Hannifin Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Parker Hannifin's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Parker Hannifin using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Parker Hannifin based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for Next Year | ||
| Current Deferred Revenue | 211 M | 136.3 M | |
| Total Revenue | 19.9 B | 20.8 B | |
| Cost Of Revenue | 12.5 B | 7.2 B | |
| Stock Based Compensation To Revenue | 0.01 | 0.01 | |
| Sales General And Administrative To Revenue | 0.15 | 0.10 | |
| Research And Ddevelopement To Revenue | 0.01 | 0.03 | |
| Capex To Revenue | 0.02 | 0.04 | |
| Revenue Per Share | 154.72 | 162.45 | |
| Ebit Per Revenue | 0.20 | 0.21 |
Currently Active Assets on Macroaxis
| VOO | Vanguard SP 500 | |
| XLK | Technology Select Sector | |
| XLV | Health Care Select | |
| QQQ | Invesco QQQ Trust | |
| XLC | Communication Services Select |
Check out Parker Hannifin Piotroski F Score and Parker Hannifin Altman Z Score analysis. For more detail on how to invest in Parker Stock please use our How to Invest in Parker Hannifin guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Parker Hannifin. If investors know Parker will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Parker Hannifin listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.192 | Dividend Share 6.69 | Earnings Share 27.1 | Revenue Per Share | Quarterly Revenue Growth 0.011 |
The market value of Parker Hannifin is measured differently than its book value, which is the value of Parker that is recorded on the company's balance sheet. Investors also form their own opinion of Parker Hannifin's value that differs from its market value or its book value, called intrinsic value, which is Parker Hannifin's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Parker Hannifin's market value can be influenced by many factors that don't directly affect Parker Hannifin's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Parker Hannifin's value and its price as these two are different measures arrived at by different means. Investors typically determine if Parker Hannifin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Parker Hannifin's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.