📊 PCAR Key Takeaways
Is Paccar Inc. (PCAR) a Good Investment?
PACCAR maintains a fortress balance sheet with zero net debt and strong free cash flow generation ($824.6M, 12.2% margin), but faces material cyclical headwinds with 15.5% revenue contraction and deteriorating returns (ROE 3.1%, ROA 1.4%). The company's operational profitability remains intact (11.5% operating margin), but weak capital returns and negative growth trajectory warrant a cautious stance until stabilization signals emerge.
PACCAR shows resilient fundamentals despite a meaningful revenue decline, maintaining 10.6% operating margin, flat net income, and strong free cash flow generation. The balance sheet appears very conservative with effectively no net leverage, which supports durability through a cyclical truck market slowdown.
Paccar Inc. Key Strengths (PCAR)
- Exceptional free cash flow generation ($824.6M) with 12.2% FCF margin demonstrates earnings quality and cash conversion
- Fortress balance sheet with zero net debt (0.00x D/E) and $3.2B cash provides strategic flexibility and downside protection
- Maintained 8.9% net margin and flat net income despite 15.5% revenue decline shows operational discipline and cost management
- Strong free cash flow generation with $3.67B of FCF and a 12.9% FCF margin
- Healthy profitability with 10.6% operating margin and 8.4% net margin despite lower revenue
- Very strong financial health supported by $3.22B cash, 0.00x debt/equity, and 15.7x interest coverage
PCAR Stock Risks: Paccar Inc. Investment Risks
- Severe revenue contraction of 15.5% YoY signals significant cyclical headwinds or market share loss in core motor vehicle market
- Poor capital returns with ROE of only 3.1% and ROA of 1.4% indicate substantial inefficient asset deployment despite large $43.6B asset base
- Diluted EPS collapsed 42.9% YoY despite flat net income, suggesting aggressive capital structure changes or share dilution masking deteriorating per-share value
- Revenue fell 15.5% YoY, indicating cyclical demand pressure in core truck markets
- Diluted EPS declined 42.9% YoY, suggesting weaker per-share earnings quality than headline net income implies
- Return metrics are solid but not exceptional for a cyclical manufacturer, leaving less room for further margin compression
Key Metrics to Watch
- Revenue stabilization and growth inflection timeline for automotive cycle recovery
- Return on equity (ROE) improvement trajectory above 5% threshold to validate capital efficiency
- Operating cash flow sustainability and free cash flow generation amid revenue challenges
- Revenue trend and operating margin in the Trucks segment
- Free cash flow consistency through the cycle
Paccar Inc. (PCAR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
PCAR Profit Margin, ROE & Profitability Analysis
PCAR vs Automotive Sector: How Paccar Inc. Compares
How Paccar Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Paccar Inc. Stock Overvalued? PCAR Valuation Analysis 2026
Based on fundamental analysis, Paccar Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Paccar Inc. Balance Sheet: PCAR Debt, Cash & Liquidity
PCAR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Paccar Inc.'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.76 reflects profitable operations.
PCAR Revenue Growth, EPS Growth & YoY Performance
PCAR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $6.8B | $505.1M | $0.96 |
| Q3 2025 | $6.7B | $590.0M | $1.12 |
| Q2 2025 | $7.5B | $723.8M | $1.37 |
| Q1 2025 | $7.4B | $505.1M | $0.96 |
| Q3 2024 | $8.2B | $972.1M | $1.85 |
| Q2 2024 | $8.8B | $1.1B | $2.13 |
| Q1 2024 | $8.5B | $733.9M | $1.40 |
| Q3 2023 | $7.1B | $769.4M | $1.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Paccar Inc. Dividends, Buybacks & Capital Allocation
PCAR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Paccar Inc. (CIK: 0000075362)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PCAR
What is the AI rating for PCAR?
Paccar Inc. (PCAR) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PCAR's key strengths?
Claude: Exceptional free cash flow generation ($824.6M) with 12.2% FCF margin demonstrates earnings quality and cash conversion. Fortress balance sheet with zero net debt (0.00x D/E) and $3.2B cash provides strategic flexibility and downside protection. ChatGPT: Strong free cash flow generation with $3.67B of FCF and a 12.9% FCF margin. Healthy profitability with 10.6% operating margin and 8.4% net margin despite lower revenue.
What are the risks of investing in PCAR?
Claude: Severe revenue contraction of 15.5% YoY signals significant cyclical headwinds or market share loss in core motor vehicle market. Poor capital returns with ROE of only 3.1% and ROA of 1.4% indicate substantial inefficient asset deployment despite large $43.6B asset base. ChatGPT: Revenue fell 15.5% YoY, indicating cyclical demand pressure in core truck markets. Diluted EPS declined 42.9% YoY, suggesting weaker per-share earnings quality than headline net income implies.
What is PCAR's revenue and growth?
Paccar Inc. reported revenue of $6.8B.
Does PCAR pay dividends?
Paccar Inc. pays dividends, with $909.4M distributed to shareholders in the trailing twelve months.
Where can I find PCAR SEC filings?
Official SEC filings for Paccar Inc. (CIK: 0000075362) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PCAR's EPS?
Paccar Inc. has a diluted EPS of $1.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PCAR's fundamental grade?
Based on our AI fundamental analysis in June 2026, Paccar Inc. has a A grade with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is PCAR stock overvalued or undervalued?
Valuation metrics for PCAR: ROE of 3.1% (sector avg: 12%), net margin of 8.9% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is PCAR's AI grade for 2026?
Our dual AI analysis gives Paccar Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PCAR's free cash flow?
Paccar Inc.'s operating cash flow is $971.8M, with capital expenditures of $147.2M. FCF margin is 12.2%.
How does PCAR compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 8.9% (avg: 6%), ROE 3.1% (avg: 12%), current ratio N/A (avg: 1.2).