One-glance verdict
Overvalued
$494.68 our estimate vs market $992.65
Wall Street consensus: $1,039.70 (110.2% higher than our fair-value estimate)
101% above our estimate, beyond the bull case
Fundamentals snapshot
Parker-Hannifin Corporation
PH · NYQ · Industrials · Specialty Industrial Machinery
Current price
$992.65
52-week range
$692.02 - $1,034.96
Market cap
$125.16B
Balance sheet
Watch
9.93x Adequate
Net debt $9.11B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 5.7% last year.
- Reward Returns 24.8% on equity, ahead of 66% of its peers.
- Risk Stock trades 49.8% above its 5-year average P/E.
- Risk Insider ownership is only 0.2% (peer median: 0.2%).
What this company does
Parker-Hannifin Corporation
Parker-Hannifin makes the essential, often unseen, parts that help machines move and function, like the pumps, hoses, and filters inside factory equipment and airplanes. The company earns money by selling these crucial components to a wide range of manufacturers in industrial and aerospace industries. Because its products are used in so many different sectors, Parker-Hannifin's business health can be a good indicator of broader economic activity.
How the company got here
Parker-Hannifin started in 1917 as a maker of pneumatic brakes for trucks and buses. An early setback nearly bankrupted the company, but founder Arthur Parker restarted it in 1924, making parts for the growing aviation industry. A key moment was the 1957 purchase of the Hannifin Corporation, a maker of valves and cylinders, which expanded its product line and led to the company's current name. Over the years, Parker-Hannifin has grown by acquiring over 100 other companies to expand its offerings in motion and control technologies. The company went public on the New York Stock Exchange in 1964 and has become a major global player in its field.
What it actually does
Parker-Hannifin makes essential parts that help control motion in all sorts of machines and vehicles. Think of it like the muscles and circulatory system for industrial equipment and aircraft. Their products include things like pumps, valves, hoses, and filters that manage the flow of liquids and gases to make things move, stop, and operate smoothly. You wouldn't buy their products in a store, but they are critical components inside everything from factory robots and construction equipment to airplanes and air conditioners. The company focuses on making highly reliable parts, because if their small component fails, it could cause a very expensive or dangerous problem for their customer's much larger machine.
Diversified Industrial
This is the company's largest business area, making up a majority of its sales. It creates a huge variety of motion and control parts for a wide range of industries like manufacturing, transportation, and energy. Customers are typically other manufacturers, known as original equipment manufacturers (OEMs), who build these components into their own products, like tractors or factory machines. A big part of this business also comes from selling replacement parts, often called aftermarket sales, which provides a steady stream of revenue as parts wear out over time.
Aerospace Systems
This segment builds and supplies critical systems and components for airplanes and military aircraft. This includes everything from flight control systems that move the wings and tail, to fuel systems, wheels, and brakes. Their customers are major aircraft manufacturers like Airbus and Boeing, as well as governments for military programs. Similar to the industrial business, a significant portion of this segment's revenue comes from providing spare parts and services for maintenance, repair, and overhaul of existing aircraft, which is a reliable and growing business as more planes are in service.
What management is betting on now
The company's current strategy, called the 'Win Strategy 3.0', focuses on profitable growth and making the business more resilient. A key part of this is shifting towards selling more products in long-lasting markets like aerospace and those that require regular replacement parts, which creates more predictable income. They are also focused on so-called 'secular trends' (long-term shifts in the market) like clean technologies, automation, and electrification, believing these areas will drive future growth. By acquiring companies with valuable technologies and focusing on operational excellence (running the business as efficiently as possible), management aims to consistently increase its margins (the profit made on each dollar of sales).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$1.12B
FY2025 Q1
$648.67M
FY2025 Q2
$813.57M
FY2025 Q3
$542.37M
FY2025 Q4
$1.34B
FY2026 Q1
$693.00M
FY2026 Q2
$768.00M
FY2026 Q3
$881.00M
Revenue
$5.49B
Net income
—
Diluted EPS
7.06
Operating cash flow
$984.00M
Free cash flow
$881.00M
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Sources
Revenue
$5.17B
Net income
—
Diluted EPS
6.60
Operating cash flow
$862.00M
Free cash flow
$768.00M
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Sources
Revenue
$5.08B
Net income
—
Diluted EPS
6.29
Operating cash flow
$782.00M
Free cash flow
$693.00M
Fetching…
Sources
Revenue
$5.24B
Net income
—
Diluted EPS
7.16
Operating cash flow
$1.47B
Free cash flow
$1.34B
Fetching…
Sources
Revenue
$4.96B
Net income
—
Diluted EPS
7.37
Operating cash flow
$630.03M
Free cash flow
$542.37M
Fetching…
Sources
Revenue
$4.74B
Net income
—
Diluted EPS
7.25
Operating cash flow
$934.76M
Free cash flow
$813.57M
Fetching…
Sources
Revenue
$4.90B
Net income
—
Diluted EPS
5.34
Operating cash flow
$743.98M
Free cash flow
$648.67M
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Sources
Revenue
$5.19B
Net income
$2.84B
Diluted EPS
6.06
Operating cash flow
$1.24B
Free cash flow
$1.12B
Fetching…
Sources
Is it cheap or expensive?
Fair value $494.68 vs current price $992.65
Wall Street consensus is the average analyst price target: $1,039.70 (110.2% higher than our fair-value estimate).
Our most-likely fair value is $494.68 a share — about 50.2% below today's price of $992.65, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $9.1B. Interest coverage 9.9x.
Net debt
$9.11B
Interest coverage
9.93x
Parker-Hannifin Corporation's profit covers its interest bill about 9.9 times over.
Watch
Worse cushion
Baseline
Better cushion
PH
BASELINE
Parker-Hannifin Corporation
Total debt $9.58B Interest coverage 9.93x This is the baseline the peer rows are being compared against.
Total debt $21.33B Interest coverage 21.61x +118% vs PH Carries about 2.2x more debt cushion than PH.
Total debt $14.06B Interest coverage 9.13x -8% vs PH Has roughly the same debt cushion as PH.
Total debt $9.69B Interest coverage 14.44x +45% vs PH Carries about 1.5x more debt cushion than PH.
Total debt $8.24B Interest coverage 11.75x +18% vs PH Carries about 1.2x more debt cushion than PH.
Total debt $3.26B Interest coverage 12.51x +26% vs PH Carries about 1.3x more debt cushion than PH.
What you should know
The case for and against PH
3 Rewards
2 Risks
Rewards
-
Revenue grew 5.7% last year.
-
Returns 24.8% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 49.8% above its 5-year average P/E.
-
Insider ownership is only 0.2% (peer median: 0.2%).
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)
36.56x
Forward P/E
29.12x
P/B
8.57x
P/S
5.96x
EV/EBITDA
24.62x
PEG ratio
3.82x
Profitability
How much profit each dollar creates
Gross margin
37.4%
Operating margin
21.5%
Net margin
16.6%
ROE
24.8%
ROA
9.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.66x
Current ratio
1.13x
Quick ratio
0.60x
Total debt
$9.58B
Total cash
$476.00M
Growth
How the business has been compounding
Revenue TTM
$20.99B
Revenue 5Y CAGR
8.5%
EPS TTM
27.15
EPS 5Y CAGR
39.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.10B
Free CF TTM
$3.34B
FCF margin
15.9%
Dividend
Shareholder payout
Yield
0.8%
Payout ratio
26.6%
Last ex-div date
2026-05-08