Parker Corporation (9845) AI Stock Analysis

• Market Cap: ¥30.56B
• Dividend Yield: 2.08%
• Average Volume (3M): 45.81K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.79
• Revenue Growth: 0.43%
• EPS Growth: 21.46%
• Country: JP
• Employees: 2,217
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 50.03
• Shares Outstanding: 26,801,453
• 10 Day Avg. Volume: 24,690
• 30 Day Avg. Volume: 45,813
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,340.00
• Price Target Upside: 11.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥1,340.00 ▲(11.30% Upside)

Parker Corporation's stock is rated highly due to its strong financial performance and attractive valuation. The company's robust balance sheet and effective cash flow management contribute significantly to its financial health. While technical indicators suggest overbought conditions, the stock's undervaluation and dividend yield provide a compelling investment case.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Parker Corporation's ability to expand its market reach and adapt to industry trends, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing Parker Corporation with the flexibility to invest in growth opportunities and weather economic fluctuations.

Cash Generation

Strong cash generation supports Parker Corporation's ability to fund operations, invest in R&D, and return capital to shareholders, ensuring long-term financial health.

Negative Factors

Net Income Decline

A decline in net income may indicate operational challenges or increased costs, which could pressure profitability if not addressed, impacting long-term earnings growth.

Free Cash Flow Decline

A decrease in free cash flow, if persistent, could limit Parker Corporation's ability to invest in growth initiatives and maintain shareholder returns, affecting future financial flexibility.

Moderate ROE

Moderate ROE indicates that Parker Corporation may not be fully maximizing shareholder equity to generate returns, which could affect investor confidence and long-term value creation.

Parker Corporation Business Overview & Revenue Model

Company Description

Parker Corporation (9845) is a diversified multinational company specializing in the manufacturing and distribution of advanced technology solutions across various sectors, including aerospace, industrial automation, and fluid power systems. The company offers a wide range of core products, such as hydraulic and pneumatic components, filtration systems, and motion control technologies, catering to a diverse clientele that includes manufacturers, government agencies, and other industrial sectors worldwide.

How the Company Makes Money

Parker Corporation generates revenue primarily through the sale of its products, which includes hydraulic pumps, valves, and filtration systems. The company's revenue model is built on a mix of direct sales to end-users and partnerships with distributors and original equipment manufacturers (OEMs). Key revenue streams include product sales, maintenance services, and aftermarket solutions that ensure ongoing customer support and product longevity. Additionally, Parker Corporation benefits from strategic partnerships with major industry players, enabling it to expand its market reach and innovate its product offerings. Factors contributing to its earnings include its strong brand reputation, investment in research and development, and adaptability to market trends, particularly in renewable energy and automation technologies.

Parker Corporation Financial Statement Overview

Summary

Parker Corporation exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is robust, characterized by low leverage and a strong equity position. Cash flow management is effective, although there is a slight decline in free cash flow. The company is well-positioned financially, but should focus on improving net income and maintaining cash flow growth to sustain its positive trajectory.

Income Statement

Parker Corporation has demonstrated strong revenue growth with a 3.37% increase from the previous year, and a consistent upward trend over the past few years. The gross profit margin stands at 25.67%, and the net profit margin is 4.02%, indicating solid profitability. EBIT and EBITDA margins are 7.01% and 8.29% respectively, reflecting efficient operational management. However, the decline in net income from the previous year suggests some challenges in maintaining net profitability.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.12, indicating low leverage and financial stability. Return on Equity (ROE) is 6.18%, which is moderate, suggesting room for improvement in generating returns for shareholders. The equity ratio is 64.22%, highlighting a strong equity base relative to total assets. Overall, the balance sheet reflects a stable financial position with manageable debt levels.

Cash Flow

Parker Corporation shows a robust operating cash flow to net income ratio of 2.03, indicating strong cash generation relative to earnings. However, free cash flow decreased slightly by 0.89% from the previous year, which could be a concern if it continues. The free cash flow to net income ratio is 1.39, showing effective cash management. Despite minor fluctuations, the cash flow statement reflects overall healthy cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.01B	70.01B	67.73B	56.79B	49.98B	44.06B
Gross Profit	17.98B	17.98B	16.35B	13.40B	11.87B	11.07B
EBITDA	5.81B	5.81B	7.30B	5.50B	4.69B	5.18B
Net Income	2.81B	2.81B	3.60B	2.48B	1.52B	2.38B
Balance Sheet
Total Assets	70.85B	70.85B	69.39B	60.16B	54.30B	53.24B
Cash, Cash Equivalents and Short-Term Investments	21.90B	21.90B	18.94B	18.02B	14.77B	14.25B
Total Debt	5.31B	5.31B	5.75B	5.53B	5.15B	4.94B
Total Liabilities	22.37B	22.37B	25.07B	21.12B	18.77B	18.56B
Stockholders Equity	45.51B	45.51B	41.56B	36.65B	33.39B	31.97B
Cash Flow
Free Cash Flow	0.00	3.92B	3.95B	3.06B	988.00M	3.35B
Operating Cash Flow	0.00	5.71B	5.33B	4.17B	2.10B	4.32B
Investing Cash Flow	0.00	-1.38B	-3.90B	-2.51B	-1.46B	-1.81B
Financing Cash Flow	0.00	-1.45B	-1.70B	-482.00M	-1.69B	-574.00M

Parker Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1204.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9845, the sentiment is Positive. The current price of 1204 is above the 20-day moving average (MA) of 1197.10, above the 50-day MA of 1071.28, and above the 200-day MA of 870.72, indicating a bullish trend. The MACD of 35.15 indicates Positive momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9845.

Parker Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9845	81 Outperform	¥30.56B	9.05		2.08%	0.43%	21.46%
8103	78 Outperform	¥33.54B	9.29		4.45%	-2.99%	14.80%
8089	73 Outperform	¥22.91B	7.23		3.36%	10.01%	47.35%
7417	73 Outperform	¥17.47B	8.24		3.96%	-1.64%	6.18%
7628	71 Outperform	¥28.86B	17.55		2.97%	0.49%	29.48%
Sector *	63 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
7624	59 Neutral	¥7.67B	20.89		2.88%	0.66%	41.70%