PH

Parker-Hannifin Corporation

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Machinery

Exchange

NYSE

County of HQ

United States

Next Earnings Date

08/06/2026

Business Summary

Parker-Hannifin operates with a robust business model centered around engineering solutions for motion and control technologies. By focusing on high-quality, innovative products, they secure long-term contracts with industrial giants. Their competitive moat is fortified by a diverse product range and strong customer relationships, ensuring recurring revenue streams. This strategic positioning enables them to generate substantial cash flow and maintain market leadership.

 


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VALUATION

P/E

31.69

Market Cap ($M USD)

$110.19B

Forward P/E

20.63

PEG

0.38

PRICE TO SALES

5.25

PRICE TO BOOK

7.55

EV / EBITDA

22.47

5-Year Average P/E

Free Cash Flow Yield

3.34%

DCF Value

$559.78

Graham Number

$268.00

Price to FCF

29.96

EV to FCF

32.43

Earnings Yield

3.16%

FCF Yield

3.34%

DIVIDEND

Yield

0.85%

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

$42.36

Next Year Revenue Growth Estimate

$2.70T

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

6.43

Return on Invested Capital (ROIC)

18.29%

Current Ratio

1.13

Quick Ratio

0.66

Net Debt to EBITDA

1.72

Interest Coverage

10.81

Gross Profit margin

37.23%

FCF PER SHARE

$29.15

REVENUE PER SHARE

$166.30

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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

$1,043.64

Institutional Ownership %

1-Year Beta

1.18

Insider Buying % (6 Mo)

Distance to 52-Week High

18.43%

Distance to 52-Week Low

27.08%

EARNINGS SURPRISE %

4.21%

50-DAY SMA

$934.45

200-DAY SMA

$856.72

⚠️ 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.