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Parker-Hannifin Corporation

Fundamental data last updated:August 10, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Machinery

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Parker-Hannifin Corporation is a global enterprise specializing in the production and distribution of advanced motion and control technologies and systems. These solutions serve a broad spectrum of international markets, including mobile applications, industrial operations, and the aerospace sector. Its organizational structure is primarily divided into two key business units: Diversified Industrial and Aerospace Systems. Within the Diversified Industrial division, the product portfolio is extensive, covering sealing, protective shielding, thermal management systems, bonding agents, surface coatings, and technologies designed to reduce noise, vibration, and harshness. This segment also provides filtration units, diagnostic tools, and related solutions for purifying fuel, air, oil, water, and various other liquids and gases by eliminating contaminants. Additionally, it produces connectors vital for fluid handling (controlling, transmitting, and containing), along with advanced control mechanisms engineered for demanding environments involving extreme corrosion, temperatures, pressures, and requiring precise flow regulation. Crucially, it supplies hydraulic, pneumatic, and electromechanical components and integrated systems to manufacturers and operators of both mobile and stationary industrial machinery. Products from this division are supplied to original equipment manufacturers (OEMs) as well as to distributors who cater to the aftermarket across a wide array of sectors. These include industries focused on manufacturing, packaging, processing, transportation, construction, climate control (refrigeration and air conditioning), agriculture, and military machinery and equipment. In contrast, the Aerospace Systems segment focuses on delivering specialized components and systems for both commercial and military aircraft structures and engine applications. Its comprehensive offerings encompass control actuation systems, parts for engine construction and exhaust, entire engine systems, fluid transport and fuel systems (including those for fuel tank inerting), hydraulic and lubrication components, pilot interface controls, pneumatic control elements, thermal regulation products, and landing gear wheels and brakes. The segment also provides devices for precise fluid measurement, distribution, and atomization. Sales within this particular division are conducted directly with original equipment manufacturers (OEMs) and final consumers. Overall, Parker-Hannifin distributes its solutions via a diversified sales network, comprising its own dedicated sales personnel, independent distributors, and authorized sales representatives. Established in 1917, the corporation maintains its global headquarters in Cleveland, Ohio.

 


VALUATION

P/E

35.22

Market Cap ($M USD)

$122.48B

Forward P/E

21.50

PEG

0.34

PRICE TO SALES

5.84

PRICE TO BOOK

8.39

EV / EBITDA

23.38

5-Year Average P/E

Free Cash Flow Yield

3.00%

DCF Value

$570.05

Graham Number

$268.00

Price to FCF

33.30

EV to FCF

35.77

Earnings Yield

2.84%

FCF Yield

3.00%

DIVIDEND

Yield

0.76%

Annual Payout

$7.40

Payout Ratio

26.26%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$27.58

Next Year EPS Growth Estimate

$45.19

Next Year Revenue Growth Estimate

$27.56B

Return on Equity (ROE)

24.69%

FREE CASH FLOW

Operating Margin

20.87%

Debt-to-Equity

0.70

Piotroski F-Score

7

Altman Z-Score

6.84

Return on Invested Capital (ROIC)

18.29%

Current Ratio

1.13

Quick Ratio

0.66

Net Debt to EBITDA

1.62

Interest Coverage

10.81

Gross Profit margin

37.23%

FCF PER SHARE

$29.15

REVENUE PER SHARE

$166.30

Gainseekers Quantitative Analysis

Summary

Parker-Hannifin Corporation’s valuation is a tale of two narratives. While the market cap suggests a behemoth, the stock has traded significantly above its DCF value and Graham Number, indicating potential overvaluation. Yet, the Forward P/E of 20.63 and a robust Altman Z-score of 6.43 suggest financial stability and growth potential. The earnings yield, however, is a modest 3.16%, hinting at a premium price. Overall, the market may be pricing in substantial growth, but the current snapshot suggests caution.

AI Exposure / Tech Reliance

In the industrial machinery sector, Parker-Hannifin is well-positioned to leverage AI and tech advancements. The company's focus on automation and efficiency aligns with industry trends towards smart manufacturing. This adaptability could enhance operational resilience and drive future growth.

The Bull Case

For the discerning GARP investor, Parker-Hannifin offers compelling reasons to buy. With an impressive ROIC of 18.29% and a Piotroski F-Score of 7, the company demonstrates strong capital efficiency and financial health. Its operating margin of 20.87% underscores pricing power, while a modest FCF yield of 3.34% suggests room for cash flow growth. These metrics paint a picture of a company capable of delivering consistent returns.

The Bear Case

Despite its strengths, Parker-Hannifin faces significant valuation challenges. The Price/Book ratio of 7.55 and Price/Sales of 5.25 indicate a potentially overheated stock. The EV to EBITDA multiple of 22.47 further suggests that investors are paying a premium. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension. These factors could deter value-focused investors seeking a bargain.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$1,057.42

Institutional Ownership %

1-Year Beta

1.11

Insider Buying % (6 Mo)

Distance to 52-Week High

6.55%

Distance to 52-Week Low

28.76%

EARNINGS SURPRISE %

4.21%

50-DAY SMA

$905.99

200-DAY SMA

$886.68

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.