One-glance verdict
Within fair range
$132.15 our estimate vs market $121.24
Wall Street consensus: $126.37 (-4.4% lower than our fair-value estimate)
8% below our estimate
Fundamentals snapshot
PACCAR Inc
PCAR · NMS · Industrials · Farm & Heavy Construction Machinery
Current price
$121.24
52-week range
$92.25 - $131.88
Market cap
$63.81B
Balance sheet
Watch
10.42x Adequate
Net debt $6.45B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 13.1% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 71.8% above its 5-year average P/E.
- Risk Net debt grew 18.5% over 3 years.
What this company does
PACCAR Inc
PACCAR is a major truck manufacturer, known for its Kenworth, Peterbilt, and DAF brands that you see on highways. While selling new trucks is its main business, the company also earns reliable money by selling replacement parts and providing loans and leases to truck buyers. This is important because even when new truck sales slow down, the large number of PACCAR trucks already on the road continue to generate income through these follow-up services.
How the company got here
PACCAR started in 1905 as Seattle Car Manufacturing Co., originally making railway and logging equipment. A key turning point was its entry into the heavy-duty truck market by acquiring Kenworth in 1945 and Peterbilt in 1958. The company officially became PACCAR in 1972. It later expanded into Europe by purchasing DAF Trucks in 1996 and Leyland Trucks in 1998, establishing itself as a major global truck manufacturer.
What it actually does
PACCAR is a global company that designs, manufactures, and sells high-quality light, medium, and heavy-duty trucks. You've likely seen their big rigs on the highway under the well-known brand names Kenworth, Peterbilt, and DAF. Beyond just building trucks, the company also produces advanced diesel engines, sells truck parts, and provides financial services like loans and leases to its customers.
Truck
This is PACCAR's largest business segment, making up the majority of its sales. It involves designing and building a wide range of commercial trucks under the premium Kenworth, Peterbilt, and DAF brands. The customers are typically businesses, from large shipping fleets to independent owner-operators, who buy these trucks to haul goods over long distances or for specialized jobs like construction.
Parts
This part of the company focuses on selling replacement parts for trucks and trailers, which is known as the aftermarket. It distributes these parts through a large network of dealers to customers who own PACCAR's trucks as well as other brands. This business provides a steady stream of revenue (money a company receives from its business activities) because trucks always need maintenance and repairs to stay on the road.
Financial Services
This segment acts like a bank specifically for PACCAR's customers and dealers. It provides loans and leasing options to help businesses afford the cost of new and used trucks and trailers. For example, a trucking company can get a loan directly from PACCAR to buy a new Peterbilt truck, paying it back over time with interest. This segment supports the sale of new trucks and generates its own income through interest and lease payments.
What management is betting on now
PACCAR is heavily investing in future technologies for its trucks. A major focus is on developing zero-emission vehicles, including battery-electric and hydrogen-powered trucks, to meet environmental regulations and customer demand for sustainability. The company is also enhancing its connected truck services, which use data to help fleet managers improve fuel efficiency and reduce maintenance downtime. These bets are aimed at keeping their premium brands at the forefront of a changing transportation industry.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$219.70M
FY2024 Q3
$1.09B
FY2024 Q4
$1.21B
FY2025 Q1
$745.20M
FY2025 Q2
$611.30M
FY2025 Q3
$1.36B
FY2025 Q4
$954.40M
FY2026 Q1
$824.60M
Revenue
$6.78B
Net income
$605.30M
Diluted EPS
1.15
Operating cash flow
$971.80M
Free cash flow
$824.60M
Fetching…
Sources
Revenue
$6.82B
Net income
$556.90M
Diluted EPS
1.06
Operating cash flow
$1.14B
Free cash flow
$954.40M
Fetching…
Sources
Revenue
$6.67B
Net income
$590.00M
Diluted EPS
1.12
Operating cash flow
$1.53B
Free cash flow
$1.36B
Fetching…
Sources
Revenue
$7.51B
Net income
$723.80M
Diluted EPS
1.37
Operating cash flow
$833.40M
Free cash flow
$611.30M
Fetching…
Sources
Revenue
$7.44B
Net income
$505.10M
Diluted EPS
0.96
Operating cash flow
$910.30M
Free cash flow
$745.20M
Fetching…
Sources
Revenue
$7.91B
Net income
$872.00M
Diluted EPS
1.65
Operating cash flow
$1.45B
Free cash flow
$1.21B
Fetching…
Sources
Revenue
$8.24B
Net income
$972.10M
Diluted EPS
1.85
Operating cash flow
$1.29B
Free cash flow
$1.09B
Fetching…
Sources
Revenue
$8.77B
Net income
$1.12B
Diluted EPS
2.13
Operating cash flow
$440.00M
Free cash flow
$219.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $132.15 vs current price $121.24
Wall Street consensus is the average analyst price target: $126.37 (-4.4% lower than our fair-value estimate).
Our most-likely fair value is $132.15 a share — about 9.0% away from today's price of $121.24, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $6.5B. Interest coverage 10.4x.
Net debt
$6.45B
Interest coverage
10.42x
PACCAR Inc's profit covers its interest bill about 10.4 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
PCAR
BASELINE
PACCAR Inc
Total debt $15.05B Interest coverage 10.42x This is the baseline the peer rows are being compared against.
Total debt $43.07B Interest coverage 22.21x +113% vs PCAR Carries about 2.1x more debt cushion than PCAR.
Total debt $48.47B Interest coverage 2.65x -75% vs PCAR Carries about 3.9x less debt cushion than PCAR.
Total debt $8.24B Interest coverage 11.75x +13% vs PCAR Has roughly the same debt cushion as PCAR.
Total debt $34.17B Interest coverage 6.48x -38% vs PCAR Carries about 1.6x less debt cushion than PCAR.
Total debt — Interest coverage 27.01x +159% vs PCAR Carries about 2.6x more debt cushion than PCAR.
What you should know
The case for and against PCAR
3 Rewards
3 Risks
Rewards
-
Returns 13.1% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 25.8x P/E vs peer median 35.5x (27.3% cheaper).
Risks
-
Stock trades 71.8% above its 5-year average P/E.
-
Net debt grew 18.5% over 3 years.
-
Operating margin compressed from 12.8% to 10.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
25.80x
Forward P/E
17.87x
P/B
3.23x
P/S
2.30x
EV/EBITDA
21.84x
PEG ratio
1.23x
Profitability
How much profit each dollar creates
Gross margin
13.6%
Operating margin
10.4%
Net margin
8.9%
ROE
13.1%
ROA
4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.76x
Current ratio
5.56x
Quick ratio
4.96x
Total debt
$15.05B
Total cash
$8.60B
Growth
How the business has been compounding
Revenue TTM
$27.78B
Revenue 5Y CAGR
4.9%
EPS TTM
4.70
EPS 5Y CAGR
-7.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.48B
Free CF TTM
$3.67B
FCF margin
13.2%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
28.1%
Last ex-div date
2026-05-13