Parker-Hannifin Corporation
Find Ratings ReportsPARKER-HANNIFIN CORP's gross profit margin for the second quarter of its fiscal year 2024 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. PARKER-HANNIFIN CORP has very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 21.24% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
---|---|---|
Net Sales ($mil) | 4820.95 | 4674.81 |
EBITDA ($mil) | 1163.14 | 1005.53 |
EBIT ($mil) | 935.36 | 775.79 |
Net Income ($mil) | 681.85 | 395.24 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 393.87 | 777.67 |
Total Assets ($mil) | 29694.94 | 30520.89 |
Total Debt ($mil) | 11789.86 | 14020.19 |
Equity ($mil) | 11302.58 | 9322.38 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 40.57 | 35.97 |
EBITDA Margin | 24.12 | 21.5 |
Operating Margin | 19.4 | 16.6 |
Sales Turnover | 0.67 | 0.56 |
Return on Assets | 8.86 | 4.12 |
Return on Equity | 23.29 | 13.52 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 0.9 | 1.28 |
Debt/Capital | 0.51 | 0.6 |
Interest Expense | 129.03 | 146.93 |
Interest Coverage | 7.25 | 5.28 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 128.41 | 128.27 |
Div / share | 1.48 | 1.33 |
EPS | 5.23 | 3.04 |
Book value / share | 88.02 | 72.68 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 607068.0 | 665204.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 43.07 for the Fabricated Metal Product Manufacturing subsector and a value on par with the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 6.09 indicates a premium versus the S&P 500 average of 4.68 and a premium versus the subsector average of 5.58. The current price-to-sales ratio is well above the S&P 500 average, but below the subsector average. The valuation analysis reveals that, PARKER-HANNIFIN CORP seems to be trading at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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PH 26.55 | Peers 43.07 | PH 21.16 | Peers 25.53 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. PH is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PH is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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PH 20.46 | Peers 21.13 | PH 0.51 | Peers 2.46 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. PH is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PH trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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PH 6.09 | Peers 5.58 | PH 108.67 | Peers 31.55 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PH is trading at a valuation on par with its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. PH is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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PH 3.47 | Peers 3.60 | PH 15.38 | Peers 9.90 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PH is trading at a valuation on par with its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. PH has a sales growth rate that significantly exceeds its peers. |
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