$571.31
arrow_drop_down0.67%Is PH a Buy or Sell based on AI Analysis?
Fundamental Analysis
Parker-Hannifin Corp (PH) appears to have a strong fundamental analysis based on key indicators such as a low debt-to-equity ratio of 1.04, indicating a healthy balance between debt and equity. Additionally, the company's return on equity (ROE) of 25.51% reflects strong profitability and efficient use of shareholder funds. The company's gross margin of 33.72% and net margin of 10.93% suggest effective cost management and profitability, which are important factors in evaluating a company's financial health. Furthermore, with a dividend yield of 1.1% and annual dividends per share of $5.77, Parker-Hannifin Corp demonstrates a commitment to rewarding shareholders with consistent dividend payments. Moreover, Parker-Hannifin Corp's revenue growth of 20.2% and earnings growth year-over-year of 58.3% indicate strong financial performance and potential for further growth. The company's price-to-book ratio of 6.11 suggests that the stock may be undervalued compared to its book value, which could present an opportunity for investors. Additionally, the company's price-to-free cash flow ratio of 24.18 indicates that the company is generating healthy cash flow relative to its market value. Overall, these fundamental indicators paint a positive picture of Parker-Hannifin Corp's financial strength and growth potential in the industry.
Positive Development
Parker Hannifin Corp. has been performing well in the stock market, with its stock price increasing by 1.20% to $530.00 on Thursday, despite underperforming the market on several occasions. The company has been scheduled to present at several upcoming conferences, which can potentially boost investor confidence and increase its visibility in the market. The company has solid growth attributes, with a high EBIT per share and a high EPS, indicating a strong financial performance. The company's asset turnover ratio and gross margin are also quite high, which suggests that it's efficiently using its assets to generate revenue and profit.
Negative Development
Despite its solid financial performance, Parker Hannifin Corp. has underperformed the market on several occasions, indicating that it may be facing challenges in the market. The company's long-term debt to total asset ratio is quite high, which could be a concern for investors looking at its financial stability. The company's payout ratio is also quite high, which may indicate that it's not generating enough profits to cover its dividend payments. The company's quick ratio is relatively low, which suggests that it may have a higher risk of insolvency due to its inability to pay its short-term liabilities.
Technical Analysis
Parker-Hannifin Corp (PH) currently has a technical rating of SELL according to the data provided. The stock is showing indicators of weakness with four technical sell signals, including RSI, CCI, WILLR, and STOCHRSI. However, there is also one technical buy indicator for the ATR. The stock has a beta of 1.52, indicating that it is relatively more volatile compared to the market as a whole. The stock's price has decreased by $1.88, or 0.35%, with a seven-day price change percentage of 1.22%. The stock's price has also shown positive price change percentages over longer periods, with one-month, three-month, six-month, year-to-date, and five-year price change percentages all in positive territory. Additionally, Parker-Hannifin Corp has a trailing PE ratio of 26.6 and a PE ratio of 26.5. The company also pays dividends, with an annual dividends per share of $5.77 and a trailing annual dividend yield of 1.1%. The company has a solid market ownership score of 36 and a sector ownership score of 86, indicating strong ownership interest in both the overall market and within the industrial sector. With a net income of $2.08B and assets totaling $29.69B, Parker-Hannifin Corp appears to be a financially stable company with a solid track record of profitability. These technical indicators, combined with the financial metrics, provide valuable insights for investors considering Parker-Hannifin Corp as a potential investment opportunity.
Conclusion and recommendation
Based on the data provided, Parker-Hannifin Corp (PH) appears to be a stable and well-performing company in the industrials sector. With a market capitalization of $68.82 billion and a strong financial position indicated by a low debt-to-equity ratio of 1.04, the company shows resilience and potential for growth. Additionally, Parker-Hannifin Corp boasts a healthy dividend yield of 1.1% and a consistent track record of annual dividends per share, indicating value for investors seeking income. In conclusion, Parker-Hannifin Corp presents itself as a solid investment opportunity with a strong market presence and solid financial fundamentals. The company's consistent growth over the years, demonstrated by a positive five-year price change percent of 207% and a dividend yield growth of 11.28%, makes it an attractive option for long-term investors. With a diverse product portfolio and a focus on innovation and quality, Parker-Hannifin Corp is well-positioned for continued success in the industrials sector.