Parker-Hannifin Corp. (PH) 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

Lam Research Corp.

Trane Technologies Plc

Parker-Hannifin Corp.

Xylem, Inc.

Applied Materials, Inc.

GE Aerospace

Dover Corp.

Illinois Tool Works Inc.

Johnson Controls International Plc

Ingersoll Rand, Inc.

Carrier Global Corp.

Why is Parker-Hannifin Corp. ?

High Management Efficiency with a high ROCE of 16.76%

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 7.71%

The company has declared Positive results for the last 9 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 3,776.01 MM
ROCE(HY) Highest at 27.42%
DIVIDEND PER SHARE(HY) Highest at USD 5.92

With ROCE of 18.21%, it has a fair valuation with a 5.82 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 24.01%, its profits have risen by 22.4% ; the PEG ratio of the company is 1.6

Consistent Returns over the last 3 years

Along with generating 24.01% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Parker-Hannifin Corp. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Parker-Hannifin Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Parker-Hannifin Corp.

25.44%

2.03

32.12%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.71%

EBIT Growth (5y)

16.26%

EBIT to Interest (avg)

8.42

Debt to EBITDA (avg)

2.27

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.86

Tax Ratio

15.62%

Dividend Payout Ratio

24.67%

Pledged Shares

Institutional Holding

90.88%

ROCE (avg)

16.76%

ROE (avg)

21.54%

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

9.04

EV to EBIT

31.93

EV to EBITDA

26.11

EV to Capital Employed

5.82

EV to Sales

6.57

PEG Ratio

1.57

Dividend Yield

0.71%

ROCE (Latest)

18.21%

ROE (Latest)

25.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

No Trend

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 3,776.01 MM

ROCE(HY)

Highest at 27.42%

DIVIDEND PER SHARE(HY)

Highest at USD 5.92

INTEREST COVERAGE RATIO(Q)

Highest at 1,380.58

RAW MATERIAL COST(Y)

Fallen by -3.95% (YoY

NET SALES(Q)

Highest at USD 5,243 MM

OPERATING PROFIT(Q)

Highest at USD 1,366.77 MM

OPERATING PROFIT MARGIN(Q)

Highest at 26.07 %

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 25.16%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.92 times

Here's what is working for Parker-Hannifin Corp.

Operating Cash Flow

Highest at USD 3,776.01 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)

Interest Coverage Ratio

Highest at 1,380.58

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 5.92 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 5,243 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 1,366.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 26.07 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -3.95% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Parker-Hannifin Corp.

Debtors Turnover Ratio

Lowest at 5.92 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 25.16%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)