Paccar (PCAR)
NASDAQ:PCAR
Want to see PCAR full AI Analyst Report?
Top Page
Paccar
(NASDAQ:PCAR)
Select Model
Select Model
Rating:65Neutral
Price Target:
$125.00
▼(-0.99% Downside)
Action:Reiterated
Date:05/02/26
The score is driven primarily by strong cash generation and generally solid financial performance, supported by a constructive earnings outlook for sequential margin improvement. These positives are tempered by weak technical momentum (below key moving averages with negative MACD) and a valuation that looks demanding (P/E ~25) given recent revenue decline and margin compression.
Positive Factors
Free Cash Flow Generation
Sustained FCF (~$3.42B TTM) and positive FCF growth provide durable internal funding for capex, R&D, dividends and buybacks. High cash conversion (62–76% of net income historically) enhances resilience through cycles and supports strategic investments without immediate financing stress.
Negative Factors
Leverage & Reporting Gaps
Historically elevated leverage (debt close to equity) amplifies cyclical downside risk if truck demand falls. Missing TTM balance-sheet fields reduce transparency and increase uncertainty about current capitalization, weakening confidence in balance‑sheet resilience during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained FCF (~$3.42B TTM) and positive FCF growth provide durable internal funding for capex, R&D, dividends and buybacks. High cash conversion (62–76% of net income historically) enhances resilience through cycles and supports strategic investments without immediate financing stress.
Read all positive factors
Paccar Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue contributions from different business segments, providing insight into which areas drive growth and profitability, and where strategic focus may be needed.
Highlights revenue contributions from different business segments, providing insight into which areas drive growth and profitability, and where strategic focus may be needed.
Data provided by:
The Fly
The FlyPaccar (PCAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$59.49B
Dividend Yield3.83%
Average Volume (3M)2.49M
Price to Earnings (P/E)25.1
Beta (1Y)0.82
Revenue Growth-14.13%
EPS Growth-28.77%
CountryUS
Employees30,100
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)4.71
Shares Outstanding526,286,250
10 Day Avg. Volume2,602,905
30 Day Avg. Volume2,493,219
Financial Highlights & Ratios
PEG Ratio-0.56
Price to Book (P/B)2.99
Price to Sales (P/S)2.03
P/FCF Ratio19.02
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit16.87
Enterprise Value/Ebitda20.57
Forecast
1Y Price Target
$132.11Price Target Upside4.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)5.64
Revenue Forecast (FY)$28.67B
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 ...
How the Company Makes Money
PACCAR primarily makes money through three main activities: (1) Truck manufacturing: It sells heavy- and medium-duty trucks under its brands via dealer networks and directly to fleet customers. Revenue in this segment is driven by unit volumes, pr...
Paccar Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operating and financial picture: solid revenue of $6.8B, strong parts and financial services results, improving consolidated margins (13.1% in Q1, guided ~13.5% in Q2), accelerating production and delivery outlook, product/EV awards and sizeable planned capital and R&D investments. However, management also highlighted tangible headwinds — higher raw material and energy costs, tariff uncertainty, a competitive pricing environment, some parts softness early in the year, and potential capacity/supply-chain constraints as production ramps. On balance, the favorable results, clear guidance for margin expansion, strengthened market share and product momentum outweigh the nearer-term challenges noted.Positive Updates
Strong Quarterly Revenue and Profit
Reported revenues of $6.8 billion and net income of $605 million for Q1 2026.
Negative Updates
Raw Material and Energy Cost Pressure
Management flagged high raw material (steel, aluminum) and energy costs as partial offsets to margin gains and a continuing headwind to pricing power.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Revenue and Profit
Reported revenues of $6.8 billion and net income of $605 million for Q1 2026.
Read all positive updates
Company Guidance
PACCAR’s guidance and commentary included a number of specific metrics: Q1 revenue was $6.8 billion with net income of $605 million; PACCAR Parts posted Q1 revenues of $1.7 billion, pretax income of $402 million and a parts gross margin of 29.6%; PACCAR Financial Services pretax income was $116 million. Global truck deliveries were ~33,000 in Q1 with an estimated 37,000–38,000 in Q2; company truck/parts/other gross margin rose from 12.0% to 13.1% in Q1 and is forecast to expand to ~13.5% in Q2 with continued sequential improvement expected in H2. Market size outlooks were US/Canada 230k–270k units, Europe (above‑16‑ton) 280k–320k, and South America (above‑16‑ton) 100k–110k; parts sales are expected to grow ~3% in Q2 and 3%–6% for the full year. PACCAR said it is full through Q2 and majority‑full in Q3–Q4 (31.8% build share in Q1), has ~2.8 months dealer inventory (industry >4 months), plans $725M–$775M of capital investment and $450M–$500M of R&D in 2026, and noted the used‑truck market and parts demand beginning to strengthen.Paccar Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.24B | 28.44B | 33.66B | 35.13B | 28.82B | 23.52B |
| Gross Profit | 4.12B | 4.62B | 6.71B | 7.63B | 5.23B | 4.28B |
| EBITDA | 3.38B | 4.20B | 5.81B | 6.87B | 4.47B | 3.28B |
| Net Income | 2.48B | 2.38B | 4.16B | 4.60B | 3.01B | 1.87B |
Balance Sheet | ||||||
| Total Assets | 43.55B | 44.34B | 43.42B | 40.82B | 33.28B | 29.51B |
| Cash, Cash Equivalents and Short-Term Investments | 8.86B | 9.25B | 9.84B | 9.00B | 6.31B | 4.99B |
| Total Debt | 14.95B | 0.00 | 15.89B | 14.38B | 11.68B | 10.76B |
| Total Liabilities | 23.80B | 25.07B | 25.91B | 24.94B | 20.11B | 17.92B |
| Stockholders Equity | 19.76B | 19.26B | 17.51B | 15.88B | 13.17B | 11.59B |
Cash Flow | ||||||
| Free Cash Flow | 3.27B | 3.03B | 2.90B | 2.93B | 1.64B | 553.90M |
| Operating Cash Flow | 4.48B | 4.42B | 4.64B | 4.19B | 3.03B | 2.19B |
| Investing Cash Flow | -1.95B | -2.27B | -4.49B | -2.87B | -2.03B | -1.36B |
| Financing Cash Flow | -2.50B | -3.08B | -123.10M | 1.10B | 304.90M | -882.90M |
Paccar Technical Analysis
Positive
126.25
Price Trends
121.51
Positive
117.65
Positive
106.97
Positive
Market Momentum
1.94
Negative
62.51
Neutral
72.27
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 126.25 is above the 20-day moving average (MA) of 119.58, above the 50-day MA of 121.51, and above the 200-day MA of 106.97, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 62.51 is Neutral, neither overbought nor oversold. The STOCH value of 72.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCAR.
Paccar Risk Analysis
Paccar disclosed 17 risk factors in its most recent earnings report. Paccar reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Paccar Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $420.17B | 32.20 | 47.51% | 0.98% | 11.85% | -2.07% | |
68 Neutral | $8.19B | 53.64 | 9.84% | 1.56% | -0.92% | -4.01% | |
65 Neutral | $59.49B | 25.13 | 12.81% | 3.83% | -14.13% | -28.77% | |
65 Neutral | $159.14B | 54.83 | 18.93% | 1.34% | -2.66% | -21.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $8.55B | 38.18 | 17.90% | 1.10% | -3.80% | ― | |
51 Neutral | $13.32B | 487.54 | 4.99% | 2.67% | -4.05% | -62.88% |
* Industrials Sector Average
PCAR
Paccar
111.78
19.47
21.09%
AGCO
Agco
115.96
12.31
11.88%
CAT
Caterpillar
902.30
556.38
160.84%
CNH
CNH Industrial
10.76
-2.32
-17.74%
DE
Deere
580.65
89.59
18.24%
OSK
Oshkosh
125.31
26.10
26.31%
Paccar Corporate Events
Executive/Board ChangesShareholder Meetings
Paccar shareholders affirm board, executive pay and auditors
Positive
May 1, 2026
On April 27, 2026, PACCAR’s board compensation committee approved long-term performance cash awards for the 2023–2025 incentive cycle, materially increasing reported 2025 total pay for its named executives, including CEO R. P. Feight a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.