One-glance verdict
Overvalued
$638.67 our estimate vs market $943.54
Wall Street consensus: $1,160.95 (81.8% higher than our fair-value estimate)
48% above our estimate, beyond the bull case
Fundamentals snapshot
Parker-Hannifin Corporation
PH · NYQ · Industrials · Specialty Industrial Machinery
Current price
$943.54
52-week range
$715.37 - $1,099.94
Market cap
$118.93B
Balance sheet
Watch
11.56x Adequate
Net debt $8.23B. 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 8.3% last year.
- Reward Returns 25.1% on equity, ahead of 66% of its peers.
- Risk Stock trades 35.7% above its 5-year average P/E.
- Risk Insider ownership is only 0.2% (peer median: 0.3%).
What this company does
Parker-Hannifin Corporation
Parker-Hannifin makes the critical parts, like pumps, filters, and seals, that are essential for complex machinery such as airplanes, factory equipment, and tractors to operate safely and efficiently. The company profits by selling these necessary components across a very broad range of industries, so its financial health is not tied to any single sector. Because its products are fundamental to so many businesses, Parker-Hannifin's performance can often be a good indicator of the overall health of the manufacturing economy.
How the company got here
Parker-Hannifin started in 1917 as the Parker Appliance Company, founded by Arthur Parker to sell a pneumatic (air-powered) brake system for trucks. [8, 14] After an early setback where a crash wiped out his entire inventory, he restarted in 1924, finding success with specialized tube fittings for the growing aviation industry. [2, 8] The company's reputation for reliable parts grew, even supplying components for Charles Lindbergh's historic transatlantic flight. [8, 14] A key turning point was the 1957 acquisition of the Hannifin Corporation, a maker of cylinders and valves, which created the modern Parker-Hannifin. [8] Over the years, it has continued to grow by acquiring other companies, expanding its expertise in motion and control technologies.
What it actually does
Parker-Hannifin makes the essential, often unseen, parts that make machines work. [9] Think of anything that moves or requires control in a factory, a construction vehicle, or an airplane—Parker likely makes a critical component for it. [2] Their products include things like hydraulic pumps, motors, hoses, filters, and seals that manage the flow and pressure of liquids and gases. [5, 10] These components are sold to other manufacturers to build into their final products, like a tractor or an aircraft, and also as replacement parts for maintenance and repair. [5, 6]
Diversified Industrial
This is the company's largest business, making up about two-thirds of its revenue (the total money it brings in from sales). [6, 12] It manufactures and sells a huge variety of motion-control parts like hoses, fittings, filters, and valves to thousands of customers across many sectors, including manufacturing, transportation, and energy. [4, 5] A large portion of this segment's sales comes from the aftermarket (the business of selling replacement parts and components after the initial sale). [5] This creates a steady stream of business, as existing machinery constantly needs maintenance and new parts.
Aerospace Systems
This segment, which accounts for about a third of the company's sales, builds and supplies critical systems for airplanes and military aircraft. [6, 13] This includes things like flight control systems that move the wings and tail, hydraulic systems for landing gear and brakes, and complex fuel systems. [4, 15] They sell these parts directly to original equipment manufacturers (OEMs), the companies like Boeing and Airbus that build the planes. [4] A significant and growing part of this business is also selling spare parts and providing repair services directly to airlines and defense departments, which is known as the commercial aftermarket. [13]
What management is betting on now
The company's current strategy focuses on shifting its business toward more stable, long-term opportunities. [3] A major part of this is expanding its Aerospace Systems business, which is seen as a key growth engine due to strong demand in both commercial travel and defense. [12] Management is also emphasizing aftermarket sales across both of its segments, because selling replacement parts provides a more predictable and recurring source of revenue than just selling parts for new equipment. [5, 12] This strategy aims to make the company less vulnerable to short-term economic ups and downs while improving its operating margin (the percentage of each dollar in sales that's left over after paying for the day-to-day costs of running the business). [3, 13]
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.
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
FY2026 Q4
$1.56B
Revenue
$5.75B
Net income
—
Diluted EPS
8.53
Operating cash flow
$1.74B
Free cash flow
$1.56B
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Sources
Revenue
$5.49B
Net income
—
Diluted EPS
7.06
Operating cash flow
$984.00M
Free cash flow
$881.00M
Fetching…
Sources
Revenue
$5.17B
Net income
—
Diluted EPS
6.60
Operating cash flow
$862.00M
Free cash flow
$768.00M
Fetching…
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
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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
Is it cheap or expensive?
Fair value $638.67 vs current price $943.54
Wall Street consensus is the average analyst price target: $1,160.95 (81.8% higher than our fair-value estimate).
Our most-likely fair value is $638.67 a share — about 32.3% below today's price of $943.54, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $8.2B. Interest coverage 11.6x.
Net debt
$8.23B
Interest coverage
11.56x
Parker-Hannifin Corporation's profit covers its interest bill about 11.6 times over.
Watch
Worse cushion
Baseline
Better cushion
PH
BASELINE
Parker-Hannifin Corporation
Total debt $8.73B Interest coverage 11.56x This is the baseline the peer rows are being compared against.
Total debt $21.33B Interest coverage 21.61x +87% vs PH Carries about 1.9x more debt cushion than PH.
Total debt $13.80B Interest coverage 9.13x -21% vs PH Carries about 1.3x less debt cushion than PH.
Total debt $9.69B Interest coverage 14.44x +25% vs PH Carries about 1.2x more debt cushion than PH.
Total debt $8.29B Interest coverage 11.75x +2% vs PH Has roughly the same debt cushion as PH.
Total debt $3.26B Interest coverage 12.51x +8% vs PH Has roughly the same debt cushion as PH.
What you should know
The case for and against PH
3 Rewards
2 Risks
Rewards
-
Revenue grew 8.3% last year.
-
Returns 25.1% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 35.7% above its 5-year average P/E.
-
Insider ownership is only 0.2% (peer median: 0.3%).
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)
33.11x
Forward P/E
24.09x
P/B
7.72x
P/S
5.53x
EV/EBITDA
22.05x
PEG ratio
3.08x
Profitability
How much profit each dollar creates
Gross margin
37.5%
Operating margin
23.5%
Net margin
17.0%
ROE
25.1%
ROA
9.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.57x
Current ratio
1.26x
Quick ratio
0.67x
Total debt
$8.73B
Total cash
$501.00M
Growth
How the business has been compounding
Revenue TTM
$21.50B
Revenue 5Y CAGR
7.9%
EPS TTM
28.50
EPS 5Y CAGR
39.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.36B
Free CF TTM
$3.90B
FCF margin
18.2%
Dividend
Shareholder payout
Yield
0.9%
Payout ratio
26.0%
Last ex-div date
2026-08-31