Paccar (PCAR) AI Stock Analysis

• Market Cap: $50.20B
• Dividend Yield: 4.52%
• Average Volume (3M): 2.95M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.94
• 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: 2,931,637
• 30 Day Avg. Volume: 2,946,059
• 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: 1.16
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 13.61
• Enterprise Value/Ebitda: 14.09
• 1Y Price Target: $106.00
• Price Target Upside: 10.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 5.08
• Revenue Forecast (FY): $26.25B

• Rating: 74 Outperform
• Price Target: $110.00 ▲(15.07% Upside)

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	27.88B	33.65B	35.16B	28.84B	23.54B	18.72B
Gross Profit	4.29B	6.37B	7.25B	4.74B	3.28B	2.55B
EBITDA	4.14B	6.35B	6.63B	4.65B	3.27B	2.56B
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: Negative
• Last Price: 95.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCAR, the sentiment is Negative. The current price of 95.59 is below the 20-day moving average (MA) of 98.32, below the 50-day MA of 97.91, and below the 200-day MA of 96.93, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 43.04 is Neutral, neither overbought nor oversold. The STOCH value of 18.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCAR.

Paccar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	76 Outperform	$259.27B	28.43	46.30%	1.05%	-1.51%	-9.69%
PCAR	74 Outperform	$50.20B	18.71	14.15%	4.52%	-15.29%	-42.93%
OSK	71 Outperform	$7.88B	12.15	15.42%	1.64%	-2.28%	-0.53%
DE	66 Neutral	$128.74B	24.90	21.59%	1.36%	-20.63%	-34.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGCO	59 Neutral	$7.79B	20.80	8.69%	1.11%	-20.09%	121.28%
CNH	54 Neutral	$12.53B	21.07	7.77%	2.49%	-18.10%	-65.24%

Paccar Corporate Events

PACCAR Reports Strong Parts Revenue Amid Earnings Decline

PACCAR Inc is a global leader in the design, manufacture, and customer support of high-quality trucks under the Kenworth, Peterbilt, and DAF nameplates, and also provides financial services and distributes truck parts. In its latest earnings report, PACCAR reported a net income of $590 million for the third quarter of 2025, a decrease from $972.1 million in the same period last year, with revenues also declining to $6.67 billion from $8.24 billion. Despite the decline, PACCAR Parts and PACCAR Financial Services delivered strong performance, contributing significantly to the company’s profitability. Key highlights from the report include global truck deliveries of 31,900 units, record PACCAR Parts revenues of $1.72 billion, and a robust cash flow from operations amounting to $1.53 billion. The company also made significant capital investments and R&D expenditures, reflecting its commitment to innovation and growth. Looking ahead, PACCAR remains optimistic about its market position, particularly with the upcoming Section 232 truck tariffs expected to bring clarity to the market. The company is also investing in next-generation technologies, including clean diesel and alternative powertrains, to enhance its product offerings and maintain its competitive edge.

PACCAR’s Earnings Call: Strong Results Amid Tariff Challenges

PACCAR’s recent earnings call revealed a strong financial performance, with the company achieving record revenues and announcing significant expansions and innovations. Despite these positive developments, challenges from tariffs and market uncertainties were acknowledged, but the upcoming Section 232 tariffs are expected to offer some relief and a positive outlook.

PACCAR Announces Executive Vice President Retirement

On September 2, 2025, PACCAR announced the retirement of Darrin C. Siver, Executive Vice President, effective January 5, 2026, after 32 years with the company. John N. Rich will continue his role as Senior Vice President and Chief Technology Officer and will also take on responsibilities for Peterbilt Motors Company. Laura J. Bloch will maintain her role as Senior Vice President for Kenworth Truck Company and PACCAR Parts, while also assuming responsibilities for Corporate Quality and Purchasing.

The most recent analyst rating on (PCAR) stock is a Buy with a $109.00 price target. To see the full list of analyst forecasts on Paccar stock, see the PCAR Stock Forecast page.