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.
