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98.29 (1y: +14%)
Market Cap 14.82 B P/E(ttm) 14.60
Enterprise Value 16.17 B P/B 2.99
PH- NYSE (USA)
Parker Hannifin Corporation
  • Currently 3/5
Business Predictability Rank: 3-Star
Back Testing Results:
Average gain of all 3-Star stocks: 8.2% per year.
% of Stocks that are in still loss if held for 10yrs: 11%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$98.29
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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 : 7/10

vs
industry		 vs
history
Cash to Debt 0.485
PH's Cash to Debt is ranked lower than
73% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.83 vs. PH: 0.485 )
PH' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.49
Current: 0.49
0.02
0.49
Equity to Asset 0.078
PH's Equity to Asset is ranked lower than
91% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.54 vs. PH: 0.078 )
PH' s 10-Year Equity to Asset Range
Min: 0.01   Max: 0.37
Current: 0.08
0.01
0.37
Interest Coverage 18
PH's Interest Coverage is ranked higher than
53% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 13.30 vs. PH: 18 )
PH' s 10-Year Interest Coverage Range
Min: 4   Max: 18
Current: 18
4
18
F-Score: 6
Z-Score: 4.13
M-Score: -2.49
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 (%) 12.70
PH's Operating margin (%) is ranked higher than
81% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.80 vs. PH: 12.70 )
PH' s 10-Year Operating margin (%) Range
Min: 5.6   Max: 12.7
Current: 12.7
5.6
12.7
Net-margin (%) 8.8
PH's Net-margin (%) is ranked higher than
77% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.90 vs. PH: 8.8 )
PH' s 10-Year Net-margin (%) Range
Min: 2.1   Max: 8.8
Current: 8.8
2.1
8.8
ROE (%) 23.5
PH's ROE (%) is ranked higher than
95% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.70 vs. PH: 23.5 )
PH' s 10-Year ROE (%) Range
Min: 5   Max: 23.5
Current: 23.5
5
23.5
ROA (%) 10.3
PH's ROA (%) is ranked higher than
91% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.20 vs. PH: 10.3 )
PH' s 10-Year ROA (%) Range
Min: 2.3   Max: 10.3
Current: 10.3
2.3
10.3
ROC (Joel Greenblatt) (%) 53.50
PH's ROC (Joel Greenblatt) (%) is ranked higher than
93% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 11.20 vs. PH: 53.50 )
PH' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 11.8   Max: 53.5
Current: 53.5
11.8
53.5
Revenue Growth (%) 7.6
PH's Revenue Growth (%) is ranked higher than
79% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. PH: 7.6 )
PH' s 10-Year Revenue Growth (%) Range
Min: 0.4   Max: 11.7
Current: 7.6
0.4
11.7
EBITDA Growth (%) 17.9
PH's EBITDA Growth (%) is ranked higher than
91% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. PH: 17.9 )
PH' s 10-Year EBITDA Growth (%) Range
Min: -7.4   Max: 17.9
Current: 17.9
-7.4
17.9
EPS Growth (%) 24.2
PH's EPS Growth (%) is ranked higher than
93% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. PH: 24.2 )
PH' s 10-Year EPS Growth (%) Range
Min: -15.6   Max: 45.5
Current: 24.2
-15.6
45.5
» PH's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

PH Guru Trades in Q2 2012

RS Investment Management 415,880 sh (New)
Paul Tudor Jones 4,000 sh (New)
Jim Simons 156,450 sh (New)
Ray Dalio 116,988 sh (+2122.84%)
Chuck Royce 24,275 sh (+1327.94%)
Joel Greenblatt 35,887 sh (+220.19%)
Bill Nygren 1,350,000 sh (+73.08%)
Steven Cohen 32,302 sh (+23.27%)
Scott Black 73,850 sh (+18.1%)
Diamond Hill Capital 1,764,220 sh (+2.32%)
Pioneer Investments Sold Out
Dodge & Cox 4,960 sh (-11.08%)
Mark Hillman 2,976 sh (-54.05%)
» More
Q3 2012

PH Guru Trades in Q3 2012

Signature Select Canadian Fund 52,350 sh (New)
Jim Simons 585,250 sh (+274.08%)
RS Investment Management 774,552 sh (+86.24%)
Bill Nygren 1,600,000 sh (+18.52%)
Chuck Royce 28,165 sh (+16.02%)
Joel Greenblatt 39,164 sh (+9.13%)
Diamond Hill Capital 1,786,886 sh (+1.28%)
Dodge & Cox 4,960 sh (unchged)
Steven Cohen Sold Out
Scott Black Sold Out
Paul Tudor Jones Sold Out
Mark Hillman 2,934 sh (-1.41%)
Ray Dalio 27,128 sh (-76.81%)
» More
Q4 2012

PH Guru Trades in Q4 2012

Steven Cohen 8,728 sh (New)
Chuck Royce 38,070 sh (+35.17%)
Bill Nygren 1,725,000 sh (+7.81%)
RS Investment Management 784,148 sh (+1.24%)
Mark Hillman 2,934 sh (unchged)
Dodge & Cox 4,960 sh (unchged)
Joel Greenblatt Sold Out
Jim Simons Sold Out
Diamond Hill Capital 1,725,009 sh (-3.46%)
Ray Dalio 10,132 sh (-62.65%)
» More
Q1 2013

PH Guru Trades in Q1 2013

Paul Tudor Jones 3,400 sh (New)
Joel Greenblatt 3,359 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
Diamond Hill Capital 1,716,645 sh (-0.48%)
RS Investment Management 575,395 sh (-26.62%)
» 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 2013-03-31 Add 443.15%0.04%$85.06 - $97.95 $ 98.296%55032
Joel Greenblatt 2013-03-31 New Buy0.02%$85.06 - $97.95 $ 98.296%3359
Joel Greenblatt 2012-12-31 Sold Out 0.22%$76.14 - $86.65 $ 98.2921%0
Ray Dalio 2012-12-31 Reduce -62.65%0.02%$76.14 - $86.65 $ 98.2921%10132
Scott Black 2012-09-30 Sold Out 0.88%$71.84 - $86.37 $ 98.2923%0
Ray Dalio 2012-09-30 Reduce -76.81%0.1%$71.84 - $86.37 $ 98.2923%27128
Joel Greenblatt 2012-06-30 Add 220.19%0.14%$74.12 - $88.51 $ 98.2919%35887
Scott Black 2012-06-30 Add 18.1%0.13%$74.12 - $88.51 $ 98.2919%73850
Ray Dalio 2012-06-30 Add 2122.84%0.12%$74.12 - $88.51 $ 98.2919%116988
George Soros 2012-03-31 Sold Out 0.3%$77.64 - $90.75 $ 98.2922%0
Ray Dalio 2012-03-31 Reduce -95.9%0.15%$77.64 - $90.75 $ 98.2922%5263
Joel Greenblatt 2012-03-31 Add 31.26%0.02%$77.64 - $90.75 $ 98.2922%11208
George Soros 2011-12-31 New Buy0.3%$60.81 - $85.33 $ 98.2927%91500
Ray Dalio 2011-12-31 Reduce -55.05%0.15%$60.81 - $85.33 $ 98.2927%128374
Joel Greenblatt 2011-12-31 Add 20.05%0.01%$60.81 - $85.33 $ 98.2927%8539
Joel Greenblatt 2011-09-30 Reduce -71.89%0.23%$61.91 - $90.66 $ 98.2933%7113
Ray Dalio 2011-09-30 Reduce -25.82%0.13%$61.91 - $90.66 $ 98.2934%285594
Joel Greenblatt 2011-06-30 New Buy0.32%$84.92 - $98.49 $ 98.2910%25303
Mario Gabelli 2011-06-30 Sold Out $84.92 - $98.49 $ 98.2910%0
Mario Gabelli 2011-03-31 Reduce -84.03%$84.22 - $94.65 $ 98.2910%2300
Joel Greenblatt 2011-03-31 Sold Out $84.22 - $94.65 $ 98.2910%0
Joel Greenblatt 2010-12-31 New Buy0.11%$68.28 - $86.39 $ 98.2924%3746
Mario Gabelli 2010-09-30 New Buy$54.8 - $70.45 $ 98.2956%12000
George Soros 2010-06-30 Sold Out 0.01%$56.16 - $71.23 $ 98.2953%0
Mario Gabelli 2010-06-30 Sold Out $56.16 - $71.23 $ 98.2953%0
Lee Ainslie 2010-03-31 Sold Out 1.26%$53.88 - $66.57 $ 98.2965%0
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Parker Hannifin Corporation

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

Ratios

vs
industry		 vs
history
P/E(ttm) 14.60
PH's P/E(ttm) is ranked higher than
66% of the 1039 Companies
in the Global Diversified Industrials industry.

( Industry Median: 19.40 vs. PH: 14.60 )
PH' s 10-Year P/E(ttm) Range
Min: 6.04   Max: 43
Current: 14.6
6.04
43
P/B 2.99
PH's P/B is ranked lower than
84% of the 1249 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.26 vs. PH: 2.99 )
PH' s 10-Year P/B Range
Min: 1.03   Max: 3.15
Current: 2.99
1.03
3.15
P/S 1.15
PH's P/S is ranked lower than
61% of the 1266 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.85 vs. PH: 1.15 )
PH' s 10-Year P/S Range
Min: 0.41   Max: 1.39
Current: 1.15
0.41
1.39
PFCF 14.39
PH's PFCF is ranked higher than
59% of the 815 Companies
in the Global Diversified Industrials industry.

( Industry Median: 16.95 vs. PH: 14.39 )
PH' s 10-Year PFCF Range
Min: 5.67   Max: 36.9
Current: 14.39
5.67
36.9
EV-to-EBIT 10.8
PH's EV-to-EBIT is ranked higher than
64% of the 1047 Companies
in the Global Diversified Industrials industry.

( Industry Median: 13.47 vs. PH: 10.8 )
PH' s 10-Year EV-to-EBIT Range
Min: 5.1   Max: 28.1
Current: 10.8
5.1
28.1
PEG 1.55
PH's PEG is ranked higher than
57% of the 319 Companies
in the Global Diversified Industrials industry.

( Industry Median: 2.08 vs. PH: 1.55 )
PH' s 10-Year PEG Range
Min: 0.27   Max: 53.64
Current: 1.55
0.27
53.64
Shiller P/E 18.23
PH's Shiller P/E is ranked lower than
100% of the Companies
in the Global Diversified Industrials industry.

( Industry Median: vs. PH: 18.23 )
PH' s 10-Year Shiller P/E Range
Min: 7.38   Max: 28.39
Current: 18.23
7.38
28.39

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.73
PH's Dividend Yield is ranked higher than
65% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.10 vs. PH: 1.73 )
PH' s 10-Year Dividend Yield Range
Min: 0.88   Max: 3.35
Current: 1.73
0.88
3.35
Dividend Payout 0.3
PH's Dividend Payout is ranked higher than
67% of the 715 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.35 vs. PH: 0.3 )
PH' s 10-Year Dividend Payout Range
Min: 0.15   Max: 0.64
Current: 0.3
0.15
0.64
Dividend growth (3y) 11.4
PH's Dividend growth (3y) is ranked higher than
95% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. PH: 11.4 )
PH' s 10-Year Dividend growth (3y) Range
Min: 2   Max: 13
Current: 11.4
2
13
Yield on cost (5-Year) 3.48
PH's Yield on cost (5-Year) is ranked higher than
87% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.10 vs. PH: 3.48 )
PH' s 10-Year Yield on cost (5-Year) Range
Min: 1.8   Max: 6.86
Current: 3.48
1.8
6.86
Share Buyback Rate 1.3
PH's Share Buyback Rate is ranked higher than
97% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. PH: 1.3 )
PH' s 10-Year Share Buyback Rate Range
Min: 2.7   Max: -1.2
Current: 1.3

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 6.8
PH's Price/Net Current Asset Value is ranked lower than
64% of the 1168 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.80 vs. PH: 6.8 )
PH' s 10-Year Price/Net Current Asset Value Range
Min: 3.5   Max: 6.8
Current: 6.8
3.5
6.8
Price/Tangible Book 16.8
PH's Price/Tangible Book is ranked lower than
98% of the 1191 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.40 vs. PH: 16.8 )
PH' s 10-Year Price/Tangible Book Range
Min: 2.2   Max: 68.2
Current: 16.8
2.2
68.2
Price/DCF (Projected) 1
PH's Price/DCF (Projected) is ranked higher than
61% of the 318 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. PH: 1 )
PH' s 10-Year Price/DCF (Projected) Range
Min: 0.5   Max: 1.3
Current: 1
0.5
1.3
Price/Median PS Value 1.1
PH's Price/Median PS Value is ranked lower than
64% of the 1216 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.10 vs. PH: 1.1 )
PH' s 10-Year Price/Median PS Value Range
Min: 0.7   Max: 1.2
Current: 1.1
0.7
1.2
Price/Peter Lynch Fair Value 2.3
PH's Price/Peter Lynch Fair Value is ranked lower than
53% of the 129 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.40 vs. PH: 2.3 )
PH' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.6   Max: 1.9
Current: 2.3
0.6
1.9
Price/Graham Number 3.1
PH's Price/Graham Number is ranked lower than
90% of the 987 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.20 vs. PH: 3.1 )
PH' s 10-Year Price/Graham Number Range
Min: 1   Max: 6.5
Current: 3.1
1
6.5
Earnings Yield (Greenblatt) 9.30
PH's Earnings Yield (Greenblatt) is ranked higher than
70% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.00 vs. PH: 9.30 )
PH' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.6   Max: 19.5
Current: 9.3
3.6
19.5
Forward Rate of Return (Yacktman) 14.9
PH's Forward Rate of Return (Yacktman) is ranked higher than
93% of the 1273 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.00 vs. PH: 14.9 )
PH' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -2.9   Max: 32.8
Current: 14.9
-2.9
32.8

Business Description

Parker Hannifin Corporation was incorporated in Ohio in 1938. The Company is a worldwide manufacturer of motion and control technologies and systems, including fluid power systems, electromechanical controls and related components. Fluid power involves the transfer and control of power through the medium of liquid, gas or air, in hydraulic, pneumatic and vacuum applications. Fluid power systems move and position materials, control machines, vehicles and equipment and improve industrial efficiency and productivity. Components of a simple fluid power system include one or more pumps which generate pressure, one or more valves which control the flow of the fluid, one or more actuators which translate the pressure from the fluid into mechanical energy, one or more filters to ensure proper fluid condition and numerous hoses, couplings, fittings and seals. Electromechanical controls involve the use of electronic components and systems to control motion and precisely locate or vary speed in automation and aerospace applications. In addition to motion and control products, the Company also is a worldwide producer of fluid purification, fluid and fuel control, process instrumentation, air conditioning, refrigeration, electromagnetic shielding and thermal management products and systems. The Company's manufacturing, service, distribution and administrative facilities are located in 38 states and in 47 foreign countries. The Company's technologies and systems are used in the products of its three main business segments: Industrial; Aerospace; and Climate & Industrial Controls. The Company's products are sold as original and replacement equipment through sales and distribution centers worldwide. The Company markets its products through direct-sales employees, independent distributors and sales representatives. Parker products are supplied to approximately 465,000 customers in virtually every significant manufacturing, transportation and processing industry. The Company's competitors include U.S. and non-U.S. companies. The Company's main global competitors include SMC Corporation, Freudenberg-NOK, Festo AG, Bosch Rexroth AG, Swagelok Company, Pall Corporation, Donaldson Company, Inc. and Eaton Corporation. The Company is subject to United States federal, state, and local laws and regulations as well as non-U.S. laws and regulations designed to protect the environment and regulate the discharge of materials into the environment.
Company Website
SEC Reports
Industry: Diversified Industrials
Compare:UTX, MMM, ARG, AP, EMR
Traded in other countries:PAR.Germany
» More Articles for PH

Headlines

Articles On GuruFocus.com
How Much Money Will You Need Before Retiring? Mar 06 2013 
Parker-Hannifin Corp: Fundamental Stock Research Analysis Oct 24 2012 
Bill Nygren on Parker Hannifin (PH) May 11 2012 
25 Companies raising distribution in 2012’s busiest week for dividend increases Apr 30 2012 
23 Companies Raising Their Dividends, Including Several Mega-Stocks Apr 30 2012 
Bill Nygren Oakmark Fund First Quarter 2012 Letter to Shareholders Apr 16 2012 
Bloomberg Speculates Which Companies Buffett Could Buy Next Feb 28 2012 
26 Confident and Secure Companies Boosting Dividends Jan 30 2012 
11 Dividend Stocks with 50 or More Years of Consecutive Increases Nov 23 2011 
The 11 Stocks With 50-Year Dividend Growth Streaks May 09 2011 

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Parker Hannifin Reaches 52-Week High - Analyst Blog May 21 2013 - ZACKS

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