📊 PH Key Takeaways
Is Parker-Hannifin Corp (PH) a Good Investment?
Parker-Hannifin demonstrates fortress-like financial health with exceptional profitability (22.8% operating margin, 16.2% net margin) and robust free cash flow generation ($2.3B), supported by conservative leverage (0.46x Debt/Equity) and strong returns on equity (17.5%). Despite flat revenue growth and modest gross margins, the company's ability to generate substantial cash from operations, combined with disciplined capital allocation reflected in 24.2% EPS growth, positions it as a high-quality, low-risk fundamental investment.
Parker-Hannifin shows strong industrial fundamentals, with very high operating profitability, solid free cash flow generation, and a balanced leverage profile. Growth is currently muted at the revenue and net income line, but margins and cash conversion suggest the business remains high quality and financially resilient.
Parker-Hannifin Corp Key Strengths (PH)
- Exceptional operating margin of 22.8% in industrial manufacturing sector with 16.2% net margin showing pricing power and operational efficiency
- Strong free cash flow generation of $2.3B (14.9% FCF margin) providing flexibility for dividends, buybacks, and debt reduction
- Conservative capital structure with 0.46x Debt/Equity ratio and 9.3x interest coverage enabling financial stability
- Excellent return on equity of 17.5% and ROA of 8.3% indicating efficient capital deployment
- EPS growth of 24.2% YoY despite flat net income demonstrates effective shareholder-focused capital allocation
- Strong profitability profile with 27.7% gross margin, 23.1% operating margin, and 16.1% net margin
- Robust cash generation with $1.46B in free cash flow and a 14.2% FCF margin
- Manageable leverage and acceptable coverage, with debt/equity of 0.52x and interest coverage of 6.1x
PH Stock Risks: Parker-Hannifin Corp Investment Risks
- Revenue declining 0.4% YoY signals market maturity or cyclical headwinds with limited organic growth visibility
- Liquidity metrics show stress: Current Ratio of 1.13x and Quick Ratio of 0.66x indicate working capital tightness and inventory-dependent liquidity
- Modest gross margin of 18% for manufacturing sector leaves limited pricing flexibility and operational margin expansion opportunities
- Flat net income despite substantial revenue base suggests limited leverage to top-line improvements or cost structure challenges
- Long-term debt of $6.8B requires ongoing cash flow to service, vulnerable to operational deterioration
- Revenue growth is slightly negative year over year, indicating soft near-term demand or limited organic expansion
- Net income was essentially flat, so earnings growth may be relying more on capital allocation than business expansion
- Liquidity is adequate but not strong, with a 1.18x current ratio and 0.66x quick ratio
Key Metrics to Watch
- Revenue growth trajectory - critical to confirm whether decline reverses or indicates structural market loss
- Operating margin sustainability above 20% threshold as key profitability safeguard
- Free cash flow consistency relative to net income conversion ratio
- Working capital management and liquidity ratios (Current and Quick) - must improve to reduce refinancing risk
- Gross margin trends - any decline would pressure overall profitability given already modest 18% level
- Organic revenue growth and order trends
- Free cash flow conversion and interest coverage
Parker-Hannifin Corp (PH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Parker-Hannifin Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
PH Profit Margin, ROE & Profitability Analysis
PH vs Materials Sector: How Parker-Hannifin Corp Compares
How Parker-Hannifin Corp compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Parker-Hannifin Corp Stock Overvalued? PH Valuation Analysis 2026
Based on fundamental analysis, Parker-Hannifin Corp has mixed fundamental signals relative to the Materials 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.
Parker-Hannifin Corp Balance Sheet: PH Debt, Cash & Liquidity
PH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Parker-Hannifin Corp's revenue has grown significantly by 39% over the 5-year period, indicating strong business expansion. The most recent EPS of $16.04 reflects profitable operations.
PH Revenue Growth, EPS Growth & YoY Performance
PH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $5.0B | $904.0M | $7.06 |
| Q2 2026 | $4.7B | $845.0M | $6.60 |
| Q1 2026 | $4.9B | $698.0M | $5.34 |
| Q3 2025 | $5.0B | $726.7M | $5.56 |
| Q2 2025 | $4.7B | $682.1M | $5.23 |
| Q1 2025 | $4.8B | $651.1M | $4.99 |
| Q3 2024 | $5.1B | $591.0M | $4.54 |
| Q2 2024 | $4.7B | $395.5M | $3.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Parker-Hannifin Corp Dividends, Buybacks & Capital Allocation
PH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Parker-Hannifin Corp (CIK: 0000076334)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PH
What is the AI rating for PH?
Parker-Hannifin Corp (PH) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PH's key strengths?
Claude: Exceptional operating margin of 22.8% in industrial manufacturing sector with 16.2% net margin showing pricing power and operational efficiency. Strong free cash flow generation of $2.3B (14.9% FCF margin) providing flexibility for dividends, buybacks, and debt reduction. ChatGPT: Strong profitability profile with 27.7% gross margin, 23.1% operating margin, and 16.1% net margin. Robust cash generation with $1.46B in free cash flow and a 14.2% FCF margin.
What are the risks of investing in PH?
Claude: Revenue declining 0.4% YoY signals market maturity or cyclical headwinds with limited organic growth visibility. Liquidity metrics show stress: Current Ratio of 1.13x and Quick Ratio of 0.66x indicate working capital tightness and inventory-dependent liquidity. ChatGPT: Revenue growth is slightly negative year over year, indicating soft near-term demand or limited organic expansion. Net income was essentially flat, so earnings growth may be relying more on capital allocation than business expansion.
What is PH's revenue and growth?
Parker-Hannifin Corp reported revenue of $15.7B.
Does PH pay dividends?
Parker-Hannifin Corp pays dividends, with $683.0M distributed to shareholders in the trailing twelve months.
Where can I find PH SEC filings?
Official SEC filings for Parker-Hannifin Corp (CIK: 0000076334) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PH's EPS?
Parker-Hannifin Corp has a diluted EPS of $19.95.
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 PH's fundamental grade?
Based on our AI fundamental analysis in June 2026, Parker-Hannifin Corp has a A grade with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is PH stock overvalued or undervalued?
Valuation metrics for PH: ROE of 17.5% (sector avg: 14%), net margin of 16.2% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
What is PH's AI grade for 2026?
Our dual AI analysis gives Parker-Hannifin Corp a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PH's free cash flow?
Parker-Hannifin Corp's operating cash flow is $2.6B, with capital expenditures of $286.0M. FCF margin is 14.9%.
How does PH compare to other Materials stocks?
Vs Materials sector averages: Net margin 16.2% (avg: 10%), ROE 17.5% (avg: 14%), current ratio 1.13 (avg: 1.6).