Paccar (PCAR) AI Stock Analysis

• Market Cap: $58.57B
• Dividend Yield: 3.83%
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.87
• Revenue Growth: -15.29%
• EPS Growth: -42.93%
• Country: US
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.12
• Shares Outstanding: 525,204,350
• 10 Day Avg. Volume: 3,665,088
• 30 Day Avg. Volume: 3,410,604
• PEG Ratio: -1.34
• Price to Book (P/B): 3.12
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 18.87
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 11.91
• Enterprise Value/Ebitda: 14.56
• 1Y Price Target: $109.25
• Price Target Upside: -2.27% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 5.04
• Revenue Forecast (FY): $26.62B

• Rating: 74 Outperform
• Price Target: $110.00 ▼(-1.60% Downside)

Paccar's overall stock score reflects strong financial performance and a positive earnings call, indicating resilience amid market challenges. The technical analysis and valuation suggest a stable but cautious outlook, with potential for growth as tariff benefits materialize.

Positive Factors

Strong Financial Performance

Strong financial results with record revenues in parts and significant innovations planned indicate resilience and potential for sustained growth.

Innovation and Expansion

Expansion of distribution and remanufacturing centers enhances service capabilities and supports long-term growth through operational efficiency.

Tariff Benefits

New tariffs are expected to improve competitive positioning by reducing costs, potentially enhancing margins and market share.

Negative Factors

Revenue Decline

A decline in revenue suggests potential market challenges, which could impact growth prospects if not addressed through strategic initiatives.

Impact of Tariffs

Tariff impacts on margins highlight vulnerability to external cost pressures, potentially affecting profitability until mitigated by new regulations.

Uncertainty in Truckload Market

Market uncertainty can lead to volatile demand and order fluctuations, affecting production planning and financial performance stability.

Paccar Business Overview & Revenue Model

Company Description

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

How the Company Makes Money

Paccar generates revenue primarily through the sale of trucks and related parts. The company's key revenue streams include the sale of new trucks, which accounts for a significant portion of its income, as well as aftermarket parts and services that provide ongoing revenue from existing customers. Additionally, Paccar's financial services division supports truck sales through financing solutions, further contributing to its earnings. Strategic partnerships with suppliers and ongoing investments in technological advancements, such as electric and autonomous vehicles, also enhance Paccar's profitability by ensuring competitive product offerings in the evolving automotive market.

Paccar Financial Statement Overview

Summary

Paccar demonstrates a strong financial standing with robust profitability and efficient cash flow management. Despite a revenue decline, the company maintains healthy margins and a stable balance sheet. Continued focus on revenue growth and asset utilization could enhance future performance.

Income Statement

Paccar's income statement shows a solid performance with a strong net profit margin of 9.65% TTM, despite a revenue decline of 10.36% TTM. The EBIT and EBITDA margins remain healthy at 11.76% and 15.52% respectively, indicating efficient operations. However, the recent revenue contraction is a concern, suggesting potential market challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.82 TTM, indicating manageable leverage. The return on equity is robust at 14.58% TTM, showcasing effective use of equity. However, the equity ratio is moderate, suggesting room for improvement in asset financing.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 10.91% TTM, highlighting effective cash management. The operating cash flow to net income ratio of 0.64 TTM indicates solid cash generation relative to earnings. The free cash flow to net income ratio of 0.68 TTM further supports a healthy cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.53B	33.66B	35.13B	28.82B	23.52B	18.73B
Gross Profit	5.14B	6.71B	7.63B	5.23B	4.28B	3.46B
EBITDA	4.21B	5.81B	6.87B	4.47B	3.28B	2.62B
Net Income	2.69B	4.16B	4.60B	3.01B	1.87B	1.30B
Balance Sheet
Total Assets	44.20B	43.42B	40.82B	33.28B	29.51B	28.26B
Cash, Cash Equivalents and Short-Term Investments	9.25B	9.84B	9.00B	6.31B	4.99B	4.97B
Total Debt	15.85B	15.89B	14.38B	11.68B	10.76B	11.31B
Total Liabilities	24.83B	25.91B	24.94B	20.11B	17.92B	17.87B
Stockholders Equity	19.37B	17.51B	15.88B	13.17B	11.59B	10.42B
Cash Flow
Free Cash Flow	3.19B	2.90B	2.93B	1.64B	553.90M	1.35B
Operating Cash Flow	4.72B	4.64B	4.19B	3.03B	2.19B	2.99B
Investing Cash Flow	-3.25B	-4.49B	-2.87B	-2.03B	-1.36B	-1.88B
Financing Cash Flow	-2.04B	-123.10M	1.10B	304.90M	-882.90M	-1.81B

Paccar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.79
• 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 PCAR, the sentiment is Positive. The current price of 111.79 is above the 20-day moving average (MA) of 108.90, above the 50-day MA of 101.74, and above the 200-day MA of 96.00, indicating a bullish trend. The MACD of 3.09 indicates Positive momentum. The RSI at 64.46 is Neutral, neither overbought nor oversold. The STOCH value of 49.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCAR.

Paccar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	76 Outperform	$273.19B	29.95	46.30%	0.98%	-1.51%	-9.69%
PCAR	74 Outperform	$58.57B	21.83	14.15%	3.83%	-15.29%	-42.93%
OSK	71 Outperform	$8.25B	12.72	15.42%	1.56%	-2.28%	-0.53%
DE	66 Neutral	$126.42B	25.26	20.61%	1.34%	-11.66%	-27.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGCO	59 Neutral	$7.86B	20.97	8.69%	1.10%	-20.09%	121.28%
CNH	55 Neutral	$11.70B	19.69	7.77%	2.67%	-18.10%	-65.24%

Paccar Corporate Events

Paccar Announces Key Executive Promotions

Paccar announced key executive promotions effective January 1, 2026, with Kevin D. Baney being promoted to President after serving as Executive Vice President since January 2025. Baney, with 31 years at the company, will oversee DAF Trucks, PACCAR Financial Services, Investor Relations, and PACCAR Parts. John N. Rich will be promoted to Executive Vice President and Chief Technology Officer, having been with the company since 2021, and will lead global technology initiatives and Peterbilt Motors Company. Laura J. Bloch will continue her role as Senior Vice President with additional responsibilities over Dynacraft.