Parker Hannifin Stock Return On Equity
PH Stock | USD 706.87 4.19 0.60% |
Parker Hannifin fundamentals help investors to digest information that contributes to Parker Hannifin's financial success or failures. It also enables traders to predict the movement of Parker Stock. The fundamental analysis module provides a way to measure Parker Hannifin's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Parker Hannifin stock.
Last Reported | Projected for Next Year | ||
Return On Equity | 0.24 | 0.12 |
Parker | Return On Equity |
Parker Hannifin Company Return On Equity Analysis
Parker Hannifin's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Parker Hannifin Return On Equity | 0.25 |
Most of Parker Hannifin's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Parker Hannifin is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Parker Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Parker Hannifin is extremely important. It helps to project a fair market value of Parker Stock properly, considering its historical fundamentals such as Return On Equity. Since Parker Hannifin's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Parker Hannifin's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Parker Hannifin's interrelated accounts and indicators.
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Parker Return On Equity Historical Pattern
Today, most investors in Parker Hannifin Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Parker Hannifin's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Parker Hannifin return on equity as a starting point in their analysis.
Parker Hannifin Return On Equity |
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Parker Total Stockholder Equity
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Based on the latest financial disclosure, Parker Hannifin has a Return On Equity of 0.2464. This is 44.0% lower than that of the Machinery sector and significantly higher than that of the Industrials industry. The return on equity for all United States stocks is 179.48% lower than that of the firm.
Parker Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Parker Hannifin's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Parker Hannifin could also be used in its relative valuation, which is a method of valuing Parker Hannifin by comparing valuation metrics of similar companies.Parker Hannifin is currently under evaluation in return on equity category among its peers.
Parker Hannifin Current Valuation Drivers
We derive many important indicators used in calculating different scores of Parker Hannifin from analyzing Parker Hannifin's financial statements. These drivers represent accounts that assess Parker Hannifin's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Parker Hannifin's important valuation drivers and their relationship over time.
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Market Cap | 23.5B | 39.6B | 31.6B | 50.1B | 64.4B | 67.6B | |
Enterprise Value | 31.3B | 45.5B | 42.6B | 62.2B | 74.5B | 78.2B |
Parker Hannifin ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Parker Hannifin's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Parker Hannifin's managers, analysts, and investors.Environmental | Governance | Social |
Parker Fundamentals
Return On Equity | 0.25 | ||||
Return On Asset | 0.0855 | ||||
Profit Margin | 0.14 % | ||||
Operating Margin | 0.20 % | ||||
Current Valuation | 100.81 B | ||||
Shares Outstanding | 128.72 M | ||||
Shares Owned By Insiders | 0.25 % | ||||
Shares Owned By Institutions | 84.09 % | ||||
Number Of Shares Shorted | 1.03 M | ||||
Price To Earning | 24.97 X | ||||
Price To Book | 7.06 X | ||||
Price To Sales | 4.55 X | ||||
Revenue | 19.93 B | ||||
Gross Profit | 6.57 B | ||||
EBITDA | 4.9 B | ||||
Net Income | 2.84 B | ||||
Cash And Equivalents | 475.18 M | ||||
Cash Per Share | 4.39 X | ||||
Total Debt | 10.56 B | ||||
Debt To Equity | 1.31 % | ||||
Current Ratio | 2.06 X | ||||
Book Value Per Share | 100.15 X | ||||
Cash Flow From Operations | 3.38 B | ||||
Short Ratio | 1.96 X | ||||
Earnings Per Share | 22.20 X | ||||
Price To Earnings To Growth | 3.22 X | ||||
Target Price | 720.71 | ||||
Number Of Employees | 61.12 K | ||||
Beta | 1.43 | ||||
Market Capitalization | 90.99 B | ||||
Total Asset | 29.3 B | ||||
Retained Earnings | 19.1 B | ||||
Working Capital | (514.68 M) | ||||
Current Asset | 5.21 B | ||||
Current Liabilities | 2.37 B | ||||
Annual Yield | 0.01 % | ||||
Five Year Return | 1.61 % | ||||
Net Asset | 29.3 B | ||||
Last Dividend Paid | 6.22 |
About Parker Hannifin Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Parker Hannifin's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Parker Hannifin using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Parker Hannifin based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Check out Parker Hannifin Piotroski F Score and Parker Hannifin Altman Z Score analysis. For more detail on how to invest in Parker Stock please use our How to Invest in Parker Hannifin guide.You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Parker Hannifin. If investors know Parker will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Parker Hannifin listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.07 | Dividend Share 6.22 | Earnings Share 22.2 | Revenue Per Share 155.467 | Quarterly Revenue Growth 0.012 |
The market value of Parker Hannifin is measured differently than its book value, which is the value of Parker that is recorded on the company's balance sheet. Investors also form their own opinion of Parker Hannifin's value that differs from its market value or its book value, called intrinsic value, which is Parker Hannifin's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Parker Hannifin's market value can be influenced by many factors that don't directly affect Parker Hannifin's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Parker Hannifin's value and its price as these two are different measures arrived at by different means. Investors typically determine if Parker Hannifin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Parker Hannifin's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.