Parker HannifinBSP:P1HC34 85 Operating Margin % is 20.65% as of Mar. 2026, which is 34% above its 10-year median of 15.36. GuruFocus rates BSP:P1HC34 with a GF Score™ of 85/100 and a GF Value™ of R$881.68 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,038 Industrial Products companies, Parker Hannifin ranks better than 92.5% on this metric.
Parker Hannifin Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Parker Hannifin's Operating Margin % or its related term are showing as below:
BSP:P1HC34'
s Operating Margin % Range Over the Past 10 Years
Min: 10.37 Med: 15.36 Max: 20.91
Current: 20.91
BSP:P1HC34's Operating Margin % is ranked better than 92.5% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs BSP:P1HC34: 20.91
Parker Hannifin's 5-Year Average Operating Margin % Growth Rate was 8.10% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Parker Hannifin Operating Margin % Related Terms
Parker Hannifin Operating Margin % Historical Data
* Premium members only.
The historical data trend for Parker Hannifin's Operating 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.
BSP:P1HC34 vs CMI, EMR, ITW: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Parker Hannifin's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Parker Hannifin's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Parker Hannifin's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Parker Hannifin's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* 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.
Parker Hannifin (BSP:P1HC34) has a Operating Margin % of 20.65% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Parker Hannifin and its competitors. This is 34% above median its historical median of 15.36. Over the past decade, Parker Hannifin's Operating Margin % has ranged from 10.37 to 20.91. According to the industry distribution chart, Parker Hannifin ranks #228 out of 3038 companies in the Industrial Products industry, placing it in the top 7.5%.
Is Parker Hannifin's Operating Margin % too high?
Parker Hannifin's current Operating Margin % of 20.65% is 34% above median its 10-year median of 15.36. Over the past 10 years, this metric has ranged from a low of 10.37 to a high of 20.91. The Industrial Products industry median Operating Margin % is 6.53. Parker Hannifin's value of 20.65% is 216.2% above this industry median. Based on the distribution chart, Parker Hannifin ranks #228 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Parker Hannifin has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Parker Hannifin's Operating Margin % compare to CMI and EMR?
According to the Industrial Products industry distribution chart, Parker Hannifin ranks #228 out of 3038 companies for Operating Margin %. This places Parker Hannifin in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Parker Hannifin's value of 20.65% is 216.2% above this benchmark. Historically, Parker Hannifin's own Operating Margin % has ranged from 10.37 to 20.91 over the past decade. While the company's 10-year median is 15.36 vs. the industry median of 6.53, 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 Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parker Hannifin's current Operating Margin % of 20.65% is 216.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Parker Hannifin and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parker Hannifin's current Operating Margin % is 20.65%, which is 34% above median its own 10-year median of 15.36. 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 (BSP:P1HC34) is currently considered Significantly Overvalued. The stock's GF Value™ is R$881.68, compared to a current price of R$1,232.01 — trading 39.7% above its estimated fair value. The current Operating Margin % is 20.65%, which is 34% above median its 10-year median of 15.36 and 216.2% above the Industrial Products industry median of 6.53. Parker Hannifin's overall GF Score™ is 85/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Parker Hannifin (BSP:P1HC34), the current Operating Margin % is 20.65% 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 (BSP:P1HC34) Overvalued in 2026?
Based on GuruFocus' analysis, Parker Hannifin stock appears to be overvalued.
The current stock price of R$1,232.01 is trading 39.7% above its estimated GF Value™ of R$881.68.
GuruFocus considers Parker Hannifin to be Significantly Overvalued.
Key valuation signals for BSP:P1HC34:
Operating Margin %: 20.65% (34% above median its 10-year median of 15.36)
GF Value™: R$881.68 vs. price of R$1,232.01 (39.7% above fair value)
Industry Position: 216.2% above the Industrial Products median (#228 of 3038)
No single metric tells the full story. See the BSP:P1HC34 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.
85GF Score
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