Parker Hannifin (PH) AI Stock Analysis

• Market Cap: $103.60B
• Dividend Yield: 0.86%
• Average Volume (3M): 677.49K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 1.27
• Revenue Growth: 0.22%
• EPS Growth: 26.66%
• Country: US
• Employees: 61,120
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 7.22
• Shares Outstanding: 126,186,700
• 10 Day Avg. Volume: 971,231
• 30 Day Avg. Volume: 677,487
• PEG Ratio: 1.04
• Price to Book (P/B): 6.55
• Price to Sales (P/S): 4.51
• P/FCF Ratio: 26.82
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 5.35
• Enterprise Value/Gross Profit: 14.44
• Enterprise Value/Ebitda: 19.22
• 1Y Price Target: $881.00
• Price Target Upside: 7.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 30.13
• Revenue Forecast (FY): $21.03B

• Rating: 77 Outperform
• Price Target: $947.00 ▲(15.87% Upside)

Parker Hannifin's strong financial performance and positive earnings call are the primary drivers of its stock score. The company's robust growth and raised guidance reflect its strategic focus and market strength. However, the high valuation and technical indicators suggesting overbought conditions temper the overall score.

Positive Factors

Revenue Growth

Parker Hannifin's consistent revenue growth highlights its strong market position and ability to expand its customer base, supporting long-term business stability.

Cash Flow Generation

Strong cash flow generation provides Parker Hannifin with the financial flexibility to invest in growth opportunities and manage debt, enhancing its long-term resilience.

Strategic Acquisition

The acquisition of Filtration Group is expected to enhance Parker Hannifin's product offerings and market reach, contributing to sustained growth and competitive advantage.

Negative Factors

Transportation Market Challenges

Challenges in the transportation market could hinder Parker Hannifin's growth in this segment, potentially impacting overall revenue and profitability.

Debt Financing for Acquisition

Financing the Filtration Group acquisition with new debt could increase leverage, potentially straining financial flexibility and impacting long-term financial health.

Agriculture Market Challenges

Persistent challenges in the agriculture market may limit growth opportunities in this sector, affecting Parker Hannifin's ability to diversify revenue streams.

Parker Hannifin Business Overview & Revenue Model

Company Description

Parker Hannifin Corporation (PH) is a global leader in motion and control technologies, providing innovative solutions across a diverse range of industries including aerospace, industrial automation, climate control, and transportation. Founded in 1918 and headquartered in Cleveland, Ohio, Parker manufactures a wide array of products, including hydraulic pumps, valves, filters, and seals, as well as pneumatic systems and electronic controls. The company operates through multiple segments, focusing on providing high-performance systems and components that enhance efficiency and sustainability in various applications.

How the Company Makes Money

Parker Hannifin generates revenue primarily through the sale of its engineered products and systems, which are utilized in a variety of sectors. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and end-users, as well as through distributors and service providers. Key revenue streams include hydraulic and pneumatic components, filtration systems, and motion control technologies. The company also engages in aftermarket services, which provide ongoing revenue through maintenance, repair, and replacement parts. Significant partnerships with major industrial firms and participation in global supply chains enhance its market presence and contribute to its earnings, while continuous investments in research and development enable Parker to innovate and meet evolving customer needs.

Parker Hannifin Financial Statement Overview

Summary

Parker Hannifin demonstrates strong financial performance with impressive revenue growth, efficient cost management, and robust cash flow generation. The company maintains a stable balance sheet with improved leverage, although there is potential for enhancing asset financing.

Income Statement

Parker Hannifin demonstrates strong financial performance with a consistent increase in revenue, highlighted by a remarkable 90.7% revenue growth rate in the TTM period. The company maintains healthy profit margins, with a net profit margin of 18.17% and an EBIT margin of 17.61% in the TTM. These metrics indicate robust profitability and efficient cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.70 in the TTM, showing improved leverage compared to previous years. The return on equity is strong at 26.48%, indicating effective use of equity to generate profits. However, the equity ratio suggests room for improvement in asset financing.

Cash Flow

Cash flow analysis reveals a significant growth in free cash flow, with a 132.7% increase in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 0.56 suggests efficient conversion of income into cash. The free cash flow to net income ratio of 0.89 further supports the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.03B	19.85B	19.93B	19.07B	15.86B	14.35B
Gross Profit	7.43B	7.32B	7.16B	6.46B	4.39B	3.90B
EBITDA	5.58B	5.42B	5.03B	4.07B	2.44B	3.09B
Net Income	3.64B	3.53B	2.84B	2.08B	1.32B	1.75B
Balance Sheet
Total Assets	30.68B	29.49B	29.30B	29.96B	25.94B	20.34B
Cash, Cash Equivalents and Short-Term Investments	473.00M	467.00M	422.03M	483.57M	563.66M	772.23M
Total Debt	10.33B	9.49B	10.56B	12.56B	11.48B	6.58B
Total Liabilities	16.89B	15.80B	17.22B	19.63B	17.08B	11.93B
Stockholders Equity	13.78B	13.68B	12.07B	10.33B	8.85B	8.40B
Cash Flow
Free Cash Flow	3.39B	3.34B	2.98B	2.60B	2.21B	2.37B
Operating Cash Flow	3.81B	3.78B	3.38B	2.98B	2.44B	2.58B
Investing Cash Flow	-767.39M	224.00M	-298.59M	-8.18B	-418.84M	-13.00K
Financing Cash Flow	-2.96B	-3.98B	-3.11B	-971.04M	3.92B	-2.62B

Parker Hannifin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 817.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PH, the sentiment is Positive. The current price of 817.3 is above the 20-day moving average (MA) of 799.06, above the 50-day MA of 768.53, and above the 200-day MA of 691.33, indicating a bullish trend. The MACD of 21.83 indicates Negative momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 47.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PH.

Parker Hannifin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PH	77 Outperform	$103.60B	29.24	27.30%	0.86%	0.22%	26.66%
EMR	71 Outperform	$71.31B	31.37	10.91%	1.69%	2.97%	18.14%
ITW	71 Outperform	$70.03B	23.43	91.71%	2.52%	-0.41%	-10.88%
ROK	71 Outperform	$41.55B	48.28	24.24%	1.45%	0.98%	-7.51%
ROP	71 Outperform	$47.78B	30.61	8.16%	0.74%	13.95%	6.80%
ETN	69 Neutral	$133.12B	34.28	20.69%	1.20%	8.24%	6.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Parker Hannifin Corporate Events

Parker-Hannifin Corp Reports Record Sales and Growth

Parker-Hannifin Corp’s recent earnings call showcased a strong financial performance, marked by record sales and significant growth, particularly in the Aerospace Systems segment. The company has raised its full-year guidance, bolstered by robust order growth and the strategic acquisition of Curtis Instruments. Despite facing challenges in the transportation and agriculture markets, and uncertainty in the EMEA and Asia Pacific regions, the overall sentiment remains positive, driven by the company’s impressive results and optimistic outlook.

Parker Hannifin Reports Strong Q1 Earnings Growth

Parker Hannifin Corporation is a global leader in motion and control technologies, specializing in engineering breakthroughs across various industries, including aerospace and industrial applications. The company has a strong reputation for innovation and operational excellence.

Parker Hannifin Shareholders Approve Key Proposals at Meeting

On October 22, 2025, Parker Hannifin held its Annual Meeting of Shareholders where three key proposals were voted on. The shareholders elected directors for terms expiring in 2026, approved executive compensation on a non-binding basis, and ratified Deloitte & Touche LLP as the independent auditor for the fiscal year ending June 30, 2026.

The most recent analyst rating on (PH) stock is a Buy with a $825.00 price target. To see the full list of analyst forecasts on Parker Hannifin stock, see the PH Stock Forecast page.

Parker Hannifin Appoints Beth Wozniak as New Director

On September 1, 2025, Parker-Hannifin Corporation’s Board of Directors elected Beth A. Wozniak as a Director, with her term expiring at the Annual Meeting of Shareholders in October 2025. She will also serve on the Human Resources and Compensation Committee and the Corporate Governance and Nominating Committee. The company entered into an Indemnification Agreement with Ms. Wozniak, aligning with existing agreements for directors and officers.

The most recent analyst rating on (PH) stock is a Hold with a $650.00 price target. To see the full list of analyst forecasts on Parker Hannifin stock, see the PH Stock Forecast page.

Parker Hannifin’s Record Year and Cautious Outlook

Parker Hannifin’s recent earnings call revealed a strong fiscal year 2025 performance, marked by record sales and margins across several segments, particularly in Aerospace. The company expressed optimism about future growth, driven by strategic acquisitions and a robust backlog. However, challenges in the transportation market and softness in international orders present notable headwinds. The outlook for fiscal year 2026 is cautiously optimistic, with some concerns about industrial recovery.