Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Parker-Hannifin Corp

PH · NYSE · Materials

Fundamental quality

ATTRACTIVE

85

out of 100

Parker-Hannifin Corp fits the profile of a quality compounder: it pairs high return on capital (ROE 23.8%) with wide margins (net margin 16.6%) and a business that keeps growing (7.7% a year). On fundamental quality it scores 85 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Parker Hannifin is the king of motion engineering: it makes the hydraulic and pneumatic systems, valves, seals and filters that move excavators, aircraft and factories. A discreet industrial conglomerate with decades of dividend growth behind it.

What will shape its future

  • The broad industrial cycle: it sells components to nearly every sector that makes things.
  • Its aerospace business, bolstered by acquisitions, with higher margins and its own cycle.
  • Aftermarket and replacement parts: the quiet, recurring half of its revenue.

Breakdown by area

I.Growth
71

EPS growth: 20.5% · Revenue growth: 7.7%

II.Profitability
86

Net margin: 16.6% · ROE: 23.8% · ROIC: 18.5%

III.Financial health
87

Net debt/EBITDA: 1.23x · FCF: 17.5%

Source: SEC EDGAR · TTM through 31/03/2026

The score includes +4 for dividend strength: 70 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 27 Materials companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 85%
ROEbeats 85%
Growthbeats 67%
Cash generationbeats 92%
Less debtbeats 67%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Parker-Hannifin Corp strengths

  • Strong free-cash-flow generation (FCF margin of 17.5%): profit turns into real cash.
  • Strong return on equity (ROE of 23.8%): it puts shareholder capital to good use.
  • Expanding margins: net margin has risen from 9% to 18% in recent years.
  • Growing earnings per share (20.5% annualized).

Parker-Hannifin Corp risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Parker-Hannifin Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
202013,6961,2021,8387,776
202114,3481,7462,3655,852
202215,8621,3162,21210,944
202319,0652,0832,59912,084
202419,9302,8442,9849,245
202519,8503,5323,3417,041

Between 2020 and 2025, revenue went from $13,696M to $19,850M (+45%) and net income went from $1,202M to $3,532M (+194%). Meanwhile, its margins have widened (from 9% to 18%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the nine months ended March 31, 2026, versus the nine months ended March 31, 2025 (SEC filings):

  • Revenue+7.8%
  • Net income-2%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$6.69

per share, yearly

24.4% of earnings

Payout

70 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Parker-Hannifin Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Parker-Hannifin Corp a good company to invest in?

In terms of business quality, Parker-Hannifin Corp scores 85 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Parker-Hannifin Corp a profitable company?

Yes. Parker-Hannifin Corp shows a net margin of 16.6% and an ROE of 23.8%, a sign of a profitable business.

Does Parker-Hannifin Corp have a lot of debt?

Not particularly. Its net debt is 1.23 times its EBITDA, a low level.

Is Parker-Hannifin Corp growing?

Its revenue has grown 7.7% annualized in recent years and its earnings per share 20.5%.

Does Parker-Hannifin Corp generate cash?

Yes. It converts about 17.5% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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