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Parker Hannifin Corp PH

Morningstar Rating
$531.92 +0.81 (0.15%)
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Company Report

Parker Hannifin Earnings: Aerospace Drives Growth as End-Market Demand Remains Robust

Narrow-moat-rated Parker Hannifin reported strong fiscal second-quarter results. Revenue rose 3% year over year on an organic basis. Adjusted segment operating margins rose 300 basis points to an impressive 24.5%, led by continued strength in the company’s aerospace business. The North America and international industrial segments also experienced adjusted operating margin expansion during the quarter. Parker continues to execute its cost-savings initiatives while capitalizing on end-market demand, a trend we think will drive margin expansion for the remainder of the fiscal year. As such, we've increased our fair value estimate to $417 from $411 per share due to higher near-term profitability in our forecast.

Price vs Fair Value

PH is trading at a 27% premium.
Price
$531.10
Fair Value
$869.00
Uncertainty
Medium
1-Star Price
$266.78
5-Star Price
$872.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Parker Hannifin is one of only a small handful of multi-industrial companies to consistently pay an annually increasing dividend for well over 60 years.

Bears

Parker is heavily exposed to commercial aerospace and its boom-and-bust cycle.

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News

Trading Information

Previous Close Price
$531.11
Day Range
$529.77532.60
52-Week Range
$300.86536.53
Bid/Ask
$531.34 / $532.95
Market Cap
$68.30 Bil
Volume/Avg
23,948 / 583,843

Key Statistics

Price/Earnings (Normalized)
21.99
Price/Sales
3.48
Dividend Yield (Trailing)
1.11%
Dividend Yield (Forward)
1.11%
Total Yield
1.58%

Company Profile

Parker Hannifin is an industrial conglomerate operating through 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 17,100 independent distributors, and about 40% of its business occurs outside the United States.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Large Growth
Total Number of Employees
62,730

Competitors

Valuation

Metric
PH
HON
ETN
Price/Earnings (Normalized)
21.9921.2233.29
Price/Book Value
6.038.126.02
Price/Sales
3.483.604.96
Price/Cash Flow
19.3726.5131.35
Price/Earnings
PH
HON
ETN

Financial Strength

Metric
PH
HON
ETN
Quick Ratio
0.440.840.84
Current Ratio
0.901.271.45
Interest Coverage
6.769.9422.37
Quick Ratio
PH
HON
ETN

Profitability

Metric
PH
HON
ETN
Return on Assets (Normalized)
10.45%9.49%9.66%
Return on Equity (Normalized)
30.63%34.73%19.90%
Return on Invested Capital (Normalized)
15.40%16.29%13.39%
Return on Assets
PH
HON
ETN
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