Parker-Hannifin Corporation (PH) Stock

Parker-Hannifin Corporation trades at a P/E ratio of 26.95, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 24.10 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.13 indicates a premium valuation even accounting for growth.

With a beta of 1.34, Parker-Hannifin Corporation is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 6.68 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Parker-Hannifin Corporation achieves a profit margin of 17.10%, meaning it retains $17.10 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 21.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 27.20% and ROA at 8.82%, the company generates strong returns on invested capital.

Parker-Hannifin Corporation's revenue declined by 2.20% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings increased by 32.60% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against MISCELLANEOUS FABRICATED METAL PRODUCTS industry averages for proper context.

Parker-Hannifin Corporation offers a dividend yield of 1.03%, paying $6.52 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/9/2025.

The dividend sustainability can be assessed through the payout ratio - Parker-Hannifin Corporation pays $6.52 per share in dividends against earnings of $25.99 per share, resulting in a payout ratio of 25.09%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 6/6/2025.

Parker-Hannifin Corporation has a market capitalization of $89.51B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 127.78M shares outstanding, the company's ownership is relatively concentrated. As a participant in the MISCELLANEOUS FABRICATED METAL PRODUCTS industry, it competes with other firms in this sector.

Parker-Hannifin Corporation's book value per share is $104.80, while the current stock price is $714.30, resulting in a price-to-book (P/B) ratio of 6.82. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

23 analysts cover PH with 74% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $712.35 implies -0.3% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 14 Buy, 5 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

RSI data is not available for this stock.

MACD and moving average data are not available for this stock.