Parker HannifinWBO:PH -1.70%28 Gross Margin % is 36.77% as of Mar. 2026, which is 26% above its 10-year median of 29.21. GuruFocus rates WBO:PH with a GF Score™ of 28/100 and a GF Value™ of €598.79 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,998 Industrial Products companies, Parker Hannifin ranks better than 74.02% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Parker Hannifin had a gross margin of 36.77% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Parker Hannifin Gross Margin % Related Terms
Parker Hannifin Gross Margin % Historical Data
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The historical data trend for Parker Hannifin's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
WBO:PH vs CMI, EMR, ITW: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Parker Hannifin's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Parker Hannifin Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Parker Hannifin's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Parker Hannifin's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Parker Hannifin (WBO:PH) has a Gross Margin % of 36.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Parker Hannifin and its competitors. This is 26% above median its historical median of 29.21. Over the past decade, Parker Hannifin's Gross Margin % has ranged from 22.33 to 37.23. According to the industry distribution chart, Parker Hannifin ranks #779 out of 2998 companies in the Industrial Products industry, placing it in the top 26%.
Is Parker Hannifin's Gross Margin % too high?
Parker Hannifin's current Gross Margin % of 36.77% is 26% above median its 10-year median of 29.21. Over the past 10 years, this metric has ranged from a low of 22.33 to a high of 37.23. The Industrial Products industry median Gross Margin % is 26.82. Parker Hannifin's value of 36.77% is 37.1% above this industry median. Based on the distribution chart, Parker Hannifin ranks #779 out of 2998 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Parker Hannifin has a GF Score™ of 28/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Parker Hannifin's Gross Margin % compare to CMI and EMR?
According to the Industrial Products industry distribution chart, Parker Hannifin ranks #779 out of 2998 companies for Gross Margin %. This puts Parker Hannifin in the upper half of its industry. The industry median Gross Margin % is 26.82. Parker Hannifin's value of 36.77% is 37.1% above this benchmark. Historically, Parker Hannifin's own Gross Margin % has ranged from 22.33 to 37.23 over the past decade. While the company's 10-year median is 29.21 vs. the industry median of 26.82, Parker Hannifin has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,998 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parker Hannifin's current Gross Margin % of 36.77% is 37.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Parker Hannifin and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parker Hannifin's current Gross Margin % is 36.77%, which is 26% above median its own 10-year median of 29.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parker Hannifin stock overvalued right now?
Based on GuruFocus' analysis, Parker Hannifin (WBO:PH) is currently considered Significantly Overvalued. The stock's GF Value™ is €598.79, compared to a current price of €855.20 — trading 42.8% above its estimated fair value. The current Gross Margin % is 36.77%, which is 26% above median its 10-year median of 29.21 and 37.1% above the Industrial Products industry median of 26.82. Parker Hannifin's overall GF Score™ is 28/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Parker Hannifin (WBO:PH), the current Gross Margin % is 36.77% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Parker Hannifin (WBO:PH) Overvalued in 2026?
Based on GuruFocus' analysis, Parker Hannifin stock appears to be overvalued.
The current stock price of €855.20 is trading 42.8% above its estimated GF Value™ of €598.79.
GuruFocus considers Parker Hannifin to be Significantly Overvalued.
Key valuation signals for WBO:PH:
Gross Margin %: 36.77% (26% above median its 10-year median of 29.21)
GF Value™: €598.79 vs. price of €855.20 (42.8% above fair value)
Industry Position: 37.1% above the Industrial Products median (#779 of 2998)
No single metric tells the full story. See the WBO:PH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Parker Hannifin started out in 1917 as Parker Appliance, selling pneumatic brakes. Through the acquisition of branded components, the firm has expanded into aerospace engines, agricultural and construction machinery, freight and passenger vehicles, and industrial automation equipment. Within these larger systems, Parker sells a wide array of small, critical pieces such as hydraulic, electromechanical, climate control, and filtration components. Many of its products are designed to work together, resulting in a high rate of cross-selling.
28GF Score
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