PACCAR, Inc. (PCAR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

AGCO Corp.

Cummins, Inc.

The Toro Co.

SiteOne Landscape Supply, Inc.

BorgWarner, Inc.

Westinghouse Air Brake Technologies Corp.

BWX Technologies, Inc.

Caterpillar, Inc.

Deere & Co.

PACCAR, Inc.

CNH Industrial NV

Why is PACCAR, Inc. ?

With a fall in Net Sales of -14.46%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At USD 331.3 MM has Grown at 139.73%
ROCE(HY) Lowest at 16.77%
RAW MATERIAL COST(Y) Grown by 7.33% (YoY)

With ROCE of 18.32%, it has a expensive valuation with a 2.23 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.97%, its profits have fallen by -31%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.97% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is PACCAR, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

PACCAR, Inc.

-7.15%

-0.08

29.21%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.48%

EBIT Growth (5y)

15.55%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

1.45

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

1.08

Tax Ratio

23.01%

Dividend Payout Ratio

15.56%

Pledged Shares

Institutional Holding

74.91%

ROCE (avg)

18.31%

ROE (avg)

20.99%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.72

EV to EBIT

12.15

EV to EBITDA

10.20

EV to Capital Employed

2.23

EV to Sales

1.74

PEG Ratio

Dividend Yield

4.54%

ROCE (Latest)

18.32%

ROE (Latest)

19.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4,475.6 MM

CASH AND EQV(HY)

Highest at USD 16,807.8 MM

DIVIDEND PER SHARE(HY)

Highest at USD 12.58

-27What is not working for the Company

INTEREST(HY)

At USD 331.3 MM has Grown at 139.73%

ROCE(HY)

Lowest at 16.77%

RAW MATERIAL COST(Y)

Grown by 7.33% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 39.46 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.73 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.58 times

NET SALES(Q)

Fallen at -14.46%

OPERATING PROFIT MARGIN(Q)

Lowest at 15.42 %

PRE-TAX PROFIT(Q)

Fallen at -36.21%

NET PROFIT(Q)

Fallen at -35.53%

Here's what is working for PACCAR, Inc.

Operating Cash Flow

Highest at USD 4,475.6 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 16,807.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 12.58

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for PACCAR, Inc.

Interest

At USD 331.3 MM has Grown at 139.73%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

Fallen at -14.46%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit Margin

Lowest at 15.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -36.21%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Fallen at -35.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 39.46 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 9.73 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 12.58 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.33% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales