Parker Corporation (9845) AI Stock Analysis

• Market Cap: ¥40.97B
• Dividend Yield: 1.78%
• Average Volume (3M): 21.57K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.87
• Revenue Growth: -0.94%
• EPS Growth: 51.59%
• Country: JP
• Employees: 2,217
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 46.35
• Shares Outstanding: 26,801,453
• 10 Day Avg. Volume: 25,280
• 30 Day Avg. Volume: 21,566
• PEG Ratio: -0.32
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 5.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥1,903.00 ▲(19.76% Upside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

Parker Corporation's strong financial performance and undervalued valuation are the primary drivers of its stock score. The company demonstrates robust financial health with consistent revenue growth and solid profitability margins. The technical analysis indicates strong bullish momentum, though caution is advised due to overbought signals. The attractive P/E ratio and dividend yield further enhance the stock's appeal. However, the absence of earnings call insights and corporate events limits additional context.

Positive Factors

Balance Sheet Strength

Very low leverage and a strong equity base give Parker durable financial flexibility to fund capex, pursue opportunistic M&A, and withstand downturns without heavy refinancing. This capital structure reduces financial risk and supports long-term operational continuity and investment ability.

Consistent Revenue Growth

Steady top-line growth over multiple years indicates resilient demand within its distribution operations and effective market execution. Sustainable revenue expansion helps absorb fixed costs, supports scale benefits, and provides a platform for gradual margin and profit improvement over the medium term.

Strong Cash Generation

High cash conversion versus reported earnings demonstrates real cash-generative operations, supporting dividends, reinvestment, and debt reduction without reliance on external financing. Reliable cash flow underpins durable capital allocation and resilience across business cycles.

Negative Factors

Low Net Profitability

A low net margin and a recent decline in net income limit retained earnings and the company's ability to fund growth internally. Persistently thin profitability reduces the buffer against cost inflation or volume shocks and constrains long-term shareholder return potential absent margin expansion.

Moderate ROE

ROE at this level suggests suboptimal returns on shareholders' capital relative to what might be achievable in the industry. Over time, modest capital efficiency can hinder value creation unless management improves operational leverage or reallocates capital to higher-return initiatives.

Limited Investor Communication

Absence of earnings call details and corporate event disclosures reduces visibility into management's strategy, guidance, and execution priorities. Limited communication makes it harder for investors to monitor strategic shifts or assess long-term execution risk and capital allocation consistency.

Parker Corporation Business Overview & Revenue Model

Company Description

Parker Corporation provides product development, manufacturing, sales, and technical services for the automobiles, electrical machinery, chemicals, steel, electronics, food, etc. industries in Japan and internationally. The company imports and sells machinery and equipment for use in automobile, food, shoemaking, and chemical industries. It also develops, manufactures, and sells fine chemicals for industrial use, such as cleaning agents, rust prevention, etc.; and chemical products centered on advanced chemicals, such as electronics and printing, as well as special chemicals for the aftermarket of car, railways, and aircraft. In addition, the company develops and sells industrial sealing materials and adhesives; and manufactures and sells soundproofing materials for automobile and air conditioners. Further, it develops, designs, manufactures, and sells industrial machinery. The company was formerly known as Parker Shoji Co., Ltd. and changed its name to Parker Corporation in August 1988. Parker Corporation was founded in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	70.44B	70.01B	67.73B	56.79B	49.98B	44.06B
Gross Profit	18.51B	18.12B	16.50B	13.56B	11.99B	11.16B
EBITDA	7.19B	6.61B	6.53B	5.33B	4.28B	3.96B
Net Income	3.32B	2.81B	3.60B	2.48B	1.52B	2.38B
Balance Sheet
Total Assets	69.41B	71.71B	70.10B	61.00B	55.05B	54.00B
Cash, Cash Equivalents and Short-Term Investments	21.20B	21.90B	18.94B	18.02B	14.77B	14.25B
Total Debt	5.15B	5.31B	5.75B	5.53B	5.15B	4.94B
Total Liabilities	21.05B	23.23B	25.76B	21.95B	19.50B	19.31B
Stockholders Equity	45.44B	45.51B	41.56B	36.65B	33.39B	31.97B
Cash Flow
Free Cash Flow	0.00	3.92B	4.02B	3.11B	1.00B	3.38B
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: Neutral
• Last Price: 1589.00
• 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 Neutral. The current price of 1589 is below the 20-day moving average (MA) of 1653.50, below the 50-day MA of 1593.40, and above the 200-day MA of 1279.54, indicating a neutral trend. The MACD of 8.50 indicates Positive momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 53.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9845.

Parker Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9845	79 Outperform	¥40.97B	8.57	―	1.78%	-0.94%	51.59%
8061	79 Outperform	¥91.03B	14.20	―	3.38%	10.74%	-26.50%
8052	73 Outperform	¥54.03B	13.47	―	3.00%	16.06%	31.78%
7456	67 Neutral	¥160.90B	6.77	―	1.72%	32.43%	39.26%
9902	64 Neutral	¥71.23B	15.26	―	3.17%	5.95%	23.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9830	61 Neutral	¥151.54B	9.23	―	2.42%	9.74%	6.48%