PH Investors, You Need to Know These Facts Today.

Now trading at a price of $320.98, Parker-Hannifin has moved 0.4% so far today. In contrast, the S&P 500 index moved -0.5%. Read below for a basic value analysis of Parker-Hannifin.

Parker-Hannifin shares moved 3.2% over the last 52 weeks, with a high of $340.0 and a low of $230.44. During this time, the stock outperformed the S&P 500 index by 13.0%. As of January 2022, the company's 50-day average price is $300.0. Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The large-cap Industrials company has 55,090 full time employees and is based in Cleveland, OH. Parker-Hannifin has returned a 1.5% dividend yield over the last 12 months.

The Company Has a Steady Stream of Strong Cash Flows:

2019-06-30 2020-06-30 2021-06-30 2022-06-30
Revenue (MM) $14,320 $13,696 $14,348 $15,862
Revenue Growth n/a -4.36% 4.76% 10.55%
Gross Margins 25.3% 24.9% 27.2% 28.2%
Gross Margins Growth n/a -1.58% 9.24% 3.68%
Operating Margins 14.5% 12.8% 16.5% 18.0%
Operating Margins Growth n/a -11.72% 28.91% 9.09%
Earnings Per Share $11.48 $9.29 $13.35 $10.09
EPS Growth n/a -19.08% 43.7% -24.42%
Free Cash Flow (MM) $1,535 $1,838 $2,365 $2,212
FCF Growth n/a 19.76% 28.65% -6.48%
Capital Expenditures (MM) -$195 -$233 -$210 -$230
Net Debt / EBITDA 1.51 3.3 1.96 3.12

Parker-Hannifin Is Overpriced:

Compared to the Industrials sector's average of 21.46, Parker-Hannifin has a trailing twelve month P/E ratio of 33.4 and, according to its EPS guidance of 20.75, an expected P/E ratio of 15.5. Parker-Hannifin's PEG ratio is 1.25 based on its 26.75% annual average growth rate of historical and projected earnings per share. This implies that the company's shares are fairly valued.

Parker-Hannifin's P/B ratio is 4.7 compared to its sector average of 3.7. The company is likely overvalued in terms of its equity. The company's shares are currently trading 146.4% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 11.05 * 68.241) = $130.26

Parker-Hannifin Is the Subject of Mixed Market Indicators:

19 analysts are following Parker-Hannifin and have set target prices ranging from $260 to $417 per share. On average, they have given the company a rating of buy. At the current price of $320.98, PH is trading -4.72% away from its average analyst target price of $336.89 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 1.0% of the company's shares are tied to short positions. Institutions own 85.7% of Parker-Hannifin's shares, while the insider ownership rate stands at 0.4%. The biggest shareholder is the Vanguard Group, Inc. with a 8% stake in the company worth approximately $3,241,532,835.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.