Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.79
PH's Cash to Debt is ranked higher than
55% of the 1900 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.36 vs. PH: 0.79 )
PH' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.79
Current: 0.79

0.02
0.79
Equity to Asset 0.49
PH's Equity to Asset is ranked higher than
57% of the 1912 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.53 vs. PH: 0.49 )
PH' s 10-Year Equity to Asset Range
Min: 0.42   Max: 0.56
Current: 0.49

0.42
0.56
Interest Coverage 15.01
PH's Interest Coverage is ranked higher than
58% of the 1267 Companies
in the Global Diversified Industrials industry.

( Industry Median: 24.23 vs. PH: 15.01 )
PH' s 10-Year Interest Coverage Range
Min: 4.2   Max: 17.98
Current: 15.01

4.2
17.98
F-Score: 6
Z-Score: 4.28
M-Score: -2.82
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 10.56
PH's Operating margin (%) is ranked higher than
83% of the 1893 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.96 vs. PH: 10.56 )
PH' s 10-Year Operating margin (%) Range
Min: 5.63   Max: 12.69
Current: 10.56

5.63
12.69
Net-margin (%) 7.29
PH's Net-margin (%) is ranked higher than
80% of the 1893 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.16 vs. PH: 7.29 )
PH' s 10-Year Net-margin (%) Range
Min: 2.12   Max: 8.76
Current: 7.29

2.12
8.76
ROE (%) 16.53
PH's ROE (%) is ranked higher than
92% of the 1879 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.49 vs. PH: 16.53 )
PH' s 10-Year ROE (%) Range
Min: 5.04   Max: 23.52
Current: 16.53

5.04
23.52
ROA (%) 7.56
PH's ROA (%) is ranked higher than
88% of the 1895 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.40 vs. PH: 7.56 )
PH' s 10-Year ROA (%) Range
Min: 2.26   Max: 10.31
Current: 7.56

2.26
10.31
ROC (Joel Greenblatt) (%) 40.75
PH's ROC (Joel Greenblatt) (%) is ranked higher than
93% of the 1891 Companies
in the Global Diversified Industrials industry.

( Industry Median: 12.77 vs. PH: 40.75 )
PH' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 11.76   Max: 53.48
Current: 40.75

11.76
53.48
Revenue Growth (%) 11.90
PH's Revenue Growth (%) is ranked higher than
83% of the 1521 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.30 vs. PH: 11.90 )
PH' s 10-Year Revenue Growth (%) Range
Min: 0.5   Max: 16.6
Current: 11.9

0.5
16.6
EBITDA Growth (%) 15.30
PH's EBITDA Growth (%) is ranked higher than
81% of the 1257 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.40 vs. PH: 15.30 )
PH' s 10-Year EBITDA Growth (%) Range
Min: -10.3   Max: 24.8
Current: 15.3

-10.3
24.8
EPS Growth (%) 22.60
PH's EPS Growth (%) is ranked higher than
84% of the 1139 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.20 vs. PH: 22.60 )
PH' s 10-Year EPS Growth (%) Range
Min: -26.5   Max: 57.9
Current: 22.6

-26.5
57.9
» PH's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

PH Guru Trades in Q1 2013

Joel Greenblatt 3,359 sh (New)
Paul Tudor Jones 3,400 sh (New)
Steven Cohen 412,065 sh (+4621.18%)
Ray Dalio 55,032 sh (+443.15%)
Chuck Royce 50,000 sh (+31.34%)
Bill Nygren 1,825,000 sh (+5.8%)
Dodge & Cox 4,960 sh (unchged)
Mark Hillman Sold Out
Signature Select Canadian Fund Sold Out
Diamond Hill Capital 1,716,645 sh (-0.48%)
RS Investment Management 575,395 sh (-26.62%)
» More
Q2 2013

PH Guru Trades in Q2 2013

Richard Pzena 2,395,634 sh (New)
Caxton Associates 75,710 sh (New)
Mark Hillman 8,363 sh (New)
Chuck Royce 75,700 sh (+51.4%)
Bill Nygren 1,875,000 sh (+2.74%)
Dodge & Cox 4,960 sh (unchged)
Joel Greenblatt Sold Out
Paul Tudor Jones Sold Out
Ray Dalio Sold Out
RS Investment Management 561,315 sh (-2.45%)
Diamond Hill Capital 1,578,940 sh (-8.02%)
Steven Cohen 13,848 sh (-96.64%)
» More
Q3 2013

PH Guru Trades in Q3 2013

Robert Olstein 30,000 sh (New)
Jim Simons 346,350 sh (New)
Steven Cohen 23,397 sh (+68.96%)
Richard Pzena 3,131,648 sh (+30.72%)
Chuck Royce 85,800 sh (+13.34%)
Diamond Hill Capital 1,591,283 sh (+0.78%)
Dodge & Cox 4,960 sh (unchged)
Bill Nygren 1,875,000 sh (unchged)
Caxton Associates Sold Out
Mark Hillman Sold Out
RS Investment Management 317,130 sh (-43.5%)
» More
Q4 2013

PH Guru Trades in Q4 2013

Pioneer Investments 438,764 sh (New)
Steven Cohen 85,063 sh (+263.56%)
Dodge & Cox 4,960 sh (unchged)
Bill Nygren 1,875,000 sh (unchged)
Jim Simons Sold Out
Diamond Hill Capital 1,571,065 sh (-1.27%)
RS Investment Management 312,830 sh (-1.36%)
Richard Pzena 3,065,485 sh (-2.11%)
Chuck Royce 82,000 sh (-4.43%)
Robert Olstein 27,000 sh (-10%)
» More
» Details

Insider Trades

Latest Guru Trades with PH

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ray Dalio 2013-06-30 Sold Out 0.05%$85.55 - $100.96 $ 124.9433%0
Joel Greenblatt 2013-06-30 Sold Out 0.02%$85.55 - $100.96 $ 124.9433%0
Ray Dalio 2013-03-31 Add 443.15%0.04%$85.06 - $97.95 $ 124.9434%55032
Joel Greenblatt 2013-03-31 New Buy0.02%$85.06 - $97.95 $ 124.9434%3359
Joel Greenblatt 2012-12-31 Sold Out 0.22%$76.14 - $86.65 $ 124.9453%0
Ray Dalio 2012-12-31 Reduce -62.65%0.02%$76.14 - $86.65 $ 124.9453%10132
Scott Black 2012-09-30 Sold Out 0.88%$71.84 - $86.37 $ 124.9456%0
Ray Dalio 2012-09-30 Reduce -76.81%0.1%$71.84 - $86.37 $ 124.9456%27128
Joel Greenblatt 2012-06-30 Add 220.19%0.14%$74.12 - $88.51 $ 124.9452%35887
Scott Black 2012-06-30 Add 18.1%0.13%$74.12 - $88.51 $ 124.9452%73850
Ray Dalio 2012-06-30 Add 2122.84%0.12%$74.12 - $88.51 $ 124.9452%116988
George Soros 2012-03-31 Sold Out 0.3%$77.64 - $90.75 $ 124.9455%0
Ray Dalio 2012-03-31 Reduce -95.9%0.15%$77.64 - $90.75 $ 124.9455%5263
Joel Greenblatt 2012-03-31 Add 31.26%0.02%$77.64 - $90.75 $ 124.9455%11208
George Soros 2011-12-31 New Buy0.3%$60.81 - $85.33 $ 124.9461%91500
Ray Dalio 2011-12-31 Reduce -55.05%0.15%$60.81 - $85.33 $ 124.9461%128374
Joel Greenblatt 2011-12-31 Add 20.05%0.01%$60.81 - $85.33 $ 124.9461%8539
Joel Greenblatt 2011-09-30 Reduce -71.89%0.23%$61.91 - $90.66 $ 124.9469%7113
Ray Dalio 2011-09-30 Reduce -25.82%0.13%$61.91 - $90.66 $ 124.9470%285594
Joel Greenblatt 2011-06-30 New Buy0.32%$84.92 - $98.49 $ 124.9439%25303
Mario Gabelli 2011-06-30 Sold Out $84.92 - $98.49 $ 124.9439%0
Mario Gabelli 2011-03-31 Reduce -84.03%$84.22 - $94.65 $ 124.9440%2300
Joel Greenblatt 2011-03-31 Sold Out $84.22 - $94.65 $ 124.9440%0
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Parker Hannifin Corp

Bill Nygren on Parker Hannifin (PH) - May 11, 2012

Parker Hannifin is the world’s leading producer of motion and control technologies. Its business is diversified across industries (machinery, trucks and aircraft) and geographies (earnings outside the U.S. account for over half of its total earnings). Priced at just over 11x expected 2012 earnings (plus goodwill amortization), Parker is valued like other highly cyclical businesses. However, the overwhelming majority of Parker’s profits come from its replacement parts business. This business is more profitable and more stable than the company’s original equipment business, and its branded Parker stores give it a large footprint and durable competitive advantage. Therefore, we think it should be valued at a much higher multiple than more cyclical companies. We are impressed with management’s track record as excellent operators and we like the way the company spends shareholder capital. On a recent conference call, the CEO explained a $700 million share repurchase as follows: “The reason that I made the biggest acquisition in the history of the company this last month was because the company is so cheap.” We wish more managements thought about share repurchases this way.
Check out Bill Nygren latest stock trades

Top Ranked Articles about Parker Hannifin Corp

Familiarity: Stretching Your Circle of Competence
Two of the first factors I look at when deciding whether to follow a particular stock “lead” or not are conspicuous cheapness – which I wrote about yesterday – and circle of competence. I’ll be writing about that today. The term is obviously Warren Buffett’s. I’ll also use “familiarity” to mean much the same – but not quite the same – thing. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 18.50
PH's P/E(ttm) is ranked higher than
69% of the 1566 Companies
in the Global Diversified Industrials industry.

( Industry Median: 20.10 vs. PH: 18.50 )
PH' s 10-Year P/E(ttm) Range
Min: 6.04   Max: 34.94
Current: 18.5

6.04
34.94
P/B 3.00
PH's P/B is ranked lower than
60% of the 1848 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.55 vs. PH: 3.00 )
PH' s 10-Year P/B Range
Min: 1.03   Max: 4.6
Current: 3

1.03
4.6
P/S 1.50
PH's P/S is ranked lower than
59% of the 1931 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.94 vs. PH: 1.50 )
PH' s 10-Year P/S Range
Min: 0.41   Max: 1.5
Current: 1.5

0.41
1.5
PFCF 16.40
PH's PFCF is ranked higher than
69% of the 1029 Companies
in the Global Diversified Industrials industry.

( Industry Median: 18.91 vs. PH: 16.40 )
PH' s 10-Year PFCF Range
Min: 5.6   Max: 19.32
Current: 16.4

5.6
19.32
EV-to-EBIT 16.10
PH's EV-to-EBIT is ranked higher than
58% of the 1645 Companies
in the Global Diversified Industrials industry.

( Industry Median: 14.87 vs. PH: 16.10 )
PH' s 10-Year EV-to-EBIT Range
Min: 5.1   Max: 28.1
Current: 16.1

5.1
28.1
PEG 1.10
PH's PEG is ranked higher than
73% of the 825 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.90 vs. PH: 1.10 )
PH' s 10-Year PEG Range
Min: 0.28   Max: 84.59
Current: 1.1

0.28
84.59
Shiller P/E 21.90
PH's Shiller P/E is ranked higher than
71% of the 813 Companies
in the Global Diversified Industrials industry.

( Industry Median: 22.80 vs. PH: 21.90 )
PH' s 10-Year Shiller P/E Range
Min: 7.36   Max: 28.3
Current: 21.9

7.36
28.3

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.50
PH's Dividend Yield is ranked lower than
51% of the 1414 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.60 vs. PH: 1.50 )
PH' s 10-Year Dividend Yield Range
Min: 0.88   Max: 3.35
Current: 1.5

0.88
3.35
Dividend Payout 0.26
PH's Dividend Payout is ranked higher than
66% of the 1151 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.31 vs. PH: 0.26 )
PH' s 10-Year Dividend Payout Range
Min: 0.14   Max: 0.82
Current: 0.26

0.14
0.82
Dividend growth (3y) 19.00
PH's Dividend growth (3y) is ranked higher than
86% of the 730 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.30 vs. PH: 19.00 )
PH' s 10-Year Dividend growth (3y) Range
Min: 2.7   Max: 19
Current: 19

2.7
19
Yield on cost (5-Year) 3.15
PH's Yield on cost (5-Year) is ranked higher than
77% of the 1454 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.76 vs. PH: 3.15 )
PH' s 10-Year Yield on cost (5-Year) Range
Min: 1.85   Max: 7.04
Current: 3.15

1.85
7.04
Share Buyback Rate 2.40
PH's Share Buyback Rate is ranked higher than
93% of the 1184 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.70 vs. PH: 2.40 )
PH' s 10-Year Share Buyback Rate Range
Min: 3.5   Max: -2
Current: 2.4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 9.70
PH's Price/Tangible Book is ranked lower than
79% of the 1700 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.80 vs. PH: 9.70 )
PH' s 10-Year Price/Tangible Book Range
Min: 1.86   Max: 75.37
Current: 9.7

1.86
75.37
Price/DCF (Projected) 1.10
PH's Price/DCF (Projected) is ranked higher than
74% of the 801 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. PH: 1.10 )
PH' s 10-Year Price/DCF (Projected) Range
Min: 0.38   Max: 2.62
Current: 1.1

0.38
2.62
Price/Median PS Value 1.40
PH's Price/Median PS Value is ranked lower than
55% of the 1775 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.10 vs. PH: 1.40 )
PH' s 10-Year Price/Median PS Value Range
Min: 0.49   Max: 1.49
Current: 1.4

0.49
1.49
Price/Peter Lynch Fair Value 1.10
PH's Price/Peter Lynch Fair Value is ranked higher than
76% of the 397 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. PH: 1.10 )
PH' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.4   Max: 5.35
Current: 1.1

0.4
5.35
Price/Graham Number 2.80
PH's Price/Graham Number is ranked lower than
64% of the 1423 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. PH: 2.80 )
PH' s 10-Year Price/Graham Number Range
Min: 0.91   Max: 6.74
Current: 2.8

0.91
6.74
Earnings Yield (Greenblatt) 6.20
PH's Earnings Yield (Greenblatt) is ranked higher than
62% of the 1744 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.70 vs. PH: 6.20 )
PH' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.6   Max: 19.5
Current: 6.2

3.6
19.5
Forward Rate of Return (Yacktman) 21.22
PH's Forward Rate of Return (Yacktman) is ranked higher than
90% of the 1136 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.73 vs. PH: 21.22 )
PH' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -4.7   Max: 32.3
Current: 21.22

-4.7
32.3

Business Description

Industry: Industrial Products » Diversified Industrials
Compare:UTX, MMM, ARG, AP, EMR » details
Traded in other countries:PAR.Germany
Parker Hannifin Corporation was incorporated in Ohio in 1938. The Company manufactures fluid power systems, electromechanical controls, and related components. Its operations are segmented into three areas - Industrial, Aerospace and Climate & Industrial Controls. The Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. These products are sold to original equipment manufacturers and their replacement markets in the manufacturing, transportation, and processing industries. The Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro-mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. The products are marketed primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. The Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. It serves OEMs and their replacement markets.

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide