Parker HannifinXSWX:PH -0.97%92 3-Year ROIIC % is 32.04 as of Jun. 2025, which is 186% above its 10-year median of 11.21. GuruFocus rates XSWX:PH with a GF Score™ of 92/100 and a GF Value™ of CHF545.89. The stock has 6 warning signs investors should review. Among 2,936 Industrial Products companies, Parker Hannifin ranks better than 81.3% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Parker Hannifin's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 32.04%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Parker Hannifin's 3-Year ROIIC % or its related term are showing as below:
XSWX:PH's 3-Year ROIIC % is ranked better than 81.3% of 2936
companies
in the Industrial Products industry
Industry Median: 3.425
vs XSWX:PH: 32.04
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Parker Hannifin 3-Year ROIIC % Related Terms
Parker Hannifin 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Parker Hannifin's 3-Year ROIIC % 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.
For the Specialty Industrial Machinery subindustry, Parker Hannifin's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Parker Hannifin's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Parker Hannifin's 3-Year ROIIC % falls into.
Parker Hannifin's 3-Year ROIIC % for the quarter that ended in Jun. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 3491.6 (Jun. 2025) - 2289.0218652 (Jun. 2022) )
/
( 24999 (Jun. 2025) - 21245.274 (Jun. 2022) )
=
1202.5781348
/
3753.726
=
32.04%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Parker Hannifin (XSWX:PH) has a 3-Year ROIIC % of 32.04 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Parker Hannifin and its competitors. This is 186% above median its historical median of 11.21. Over the past decade, Parker Hannifin's 3-Year ROIIC % has ranged from 3.58 to 32.04. According to the industry distribution chart, Parker Hannifin ranks #549 out of 2936 companies in the Industrial Products industry, placing it in the top 18.7%.
Is Parker Hannifin's 3-Year ROIIC % too high?
Parker Hannifin's current 3-Year ROIIC % of 32.04 is 186% above median its 10-year median of 11.21. Over the past 10 years, this metric has ranged from a low of 3.58 to a high of 32.04. The Industrial Products industry median 3-Year ROIIC % is 3.43. Parker Hannifin's value of 32.04 is 835.5% above this industry median. Based on the distribution chart, Parker Hannifin ranks #549 out of 2936 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 92/100, reflecting its overall financial health beyond just this single metric.
How does Parker Hannifin's 3-Year ROIIC % compare to ?
According to the Industrial Products industry distribution chart, Parker Hannifin ranks #549 out of 2936 companies for 3-Year ROIIC %. This places Parker Hannifin in the top 19% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.43. Parker Hannifin's value of 32.04 is 835.5% above this benchmark. Historically, Parker Hannifin's own 3-Year ROIIC % has ranged from 3.58 to 32.04 over the past decade. While the company's 10-year median is 11.21 vs. the industry median of 3.43, 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 3-Year ROIIC % for an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.43, based on 2,936 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parker Hannifin's current 3-Year ROIIC % of 32.04 is 835.5% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Parker Hannifin and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parker Hannifin's current 3-Year ROIIC % is 32.04, which is 186% above median its own 10-year median of 11.21. 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?
Parker Hannifin (XSWX:PH) has a current 3-Year ROIIC % of 32.04. The stock's GF Value™ is CHF545.89, compared to a current price of CHF773.70 — trading 41.7% above its estimated fair value. The current 3-Year ROIIC % is 32.04, which is 186% above median its 10-year median of 11.21 and 835.5% above the Industrial Products industry median of 3.43. Parker Hannifin's overall GF Score™ is 92/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Parker Hannifin (XSWX:PH), the current 3-Year ROIIC % is 32.04 as of Jun. 2025. 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 (XSWX:PH) Overvalued in 2026?
Based on GuruFocus' analysis, Parker Hannifin stock appears to be overvalued.
The current stock price of CHF773.70 is trading 41.7% above its estimated GF Value™ of CHF545.89.
Key valuation signals for XSWX:PH:
3-Year ROIIC %: 32.04 (186% above median its 10-year median of 11.21)
GF Value™: CHF545.89 vs. price of CHF773.70 (41.7% above fair value)
Industry Position: 835.5% above the Industrial Products median (#549 of 2936)
No single metric tells the full story. See the XSWX: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.
92GF Score
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