Parker Hannifin (PH) AI Stock Analysis

• Market Cap: $110.39B
• Dividend Yield: 0.79%
• Average Volume (3M): 701.36K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.23
• 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: 738,174
• 30 Day Avg. Volume: 701,357
• 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: 0.97
• Enterprise Value/Revenue: 5.35
• Enterprise Value/Gross Profit: 14.44
• Enterprise Value/Ebitda: 19.22
• 1Y Price Target: $930.70
• Price Target Upside: 4.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 30.26
• Revenue Forecast (FY): $21.06B

• Rating: 79 Outperform
• Price Target: $1,007.00 ▲(13.60% Upside)

Parker Hannifin's strong financial performance and positive earnings call sentiment are the primary drivers of its high stock score. The company's robust growth in the Aerospace segment and strategic acquisitions bolster its outlook. However, the high valuation and overbought technical indicators suggest caution. The corporate events, while positive, are already reflected in the earnings call analysis.

Positive Factors

Revenue Growth

Consistent revenue growth highlights Parker Hannifin's expanding market reach and product demand, supporting long-term business sustainability.

Aerospace Segment Performance

Strong performance in the Aerospace segment underscores Parker Hannifin's competitive advantage and potential for sustained growth in a key market.

Strategic Acquisitions

Strategic acquisitions like Curtis Instruments enhance Parker Hannifin's product offerings and market position, driving future growth.

Negative Factors

Debt Increase

Increased debt from financing acquisitions could strain financial flexibility, impacting long-term stability if not managed carefully.

Transportation Market Challenges

Ongoing challenges in the transportation market may hinder revenue growth, affecting Parker Hannifin's performance in this segment.

Regional Uncertainty

Regional uncertainties in EMEA and Asia Pacific could impact Parker Hannifin's growth prospects and operational performance in these markets.

Parker Hannifin Business Overview & Revenue Model

Company Description

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates through two segments, Diversified Industrial and Aerospace Systems. The Company's Diversified Industrial segment offers sealing, shielding, thermal products and systems, adhesives, coatings, and noise vibration and harshness solutions; filters, systems, and diagnostics solutions to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors, which control, transmit, and contain fluid; control solutions for extreme corrosion resistance, temperatures, pressures, and precise flow; and hydraulic, pneumatic, and electromechanical components and systems for builders and users of mobile and industrial machinery and equipment. This segment sells its products to original equipment manufacturers (OEMs) and distributors who serve the replacement markets in manufacturing, packaging, processing, transportation, construction, refrigeration and air conditioning, agricultural, and military machinery and equipment industries. Its Aerospace Systems segment offers products for use in commercial and military airframe and engine programs, such as control actuation systems and components, engine build-up ducting, engine exhaust nozzles and assemblies, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inerting systems, hydraulic systems and components, lubrication components, pilot controls, pneumatic control components, thermal management products, and wheels and brakes, as well as fluid metering, delivery, and atomization devices. This segment markets its products directly to OEMs and end users. It markets its products through direct-sales employees, independent distributors, and sales representatives. The company was founded in 1917 and is headquartered in Cleveland, Ohio.

How the Company Makes Money

Parker Hannifin generates revenue primarily through the sale of its diverse range of motion and control products. The company’s revenue model is built on several key streams, including direct sales of manufactured products, maintenance and service contracts, and aftermarket support. Parker's extensive distribution network and partnerships with OEMs enhance its market reach, enabling robust sales across various sectors. Additionally, the company benefits from long-term contracts and relationships with large customers, which provide a stable revenue base. Furthermore, Parker invests in research and development to innovate and expand its product offerings, ensuring it meets evolving customer needs and maintains a competitive edge in the market.

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: 886.47
• 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 PH, the sentiment is Positive. The current price of 886.47 is above the 20-day moving average (MA) of 870.97, above the 50-day MA of 820.59, and above the 200-day MA of 714.27, indicating a bullish trend. The MACD of 15.38 indicates Positive momentum. The RSI at 62.33 is Neutral, neither overbought nor oversold. The STOCH value of 31.10 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	79 Outperform	$110.39B	31.16	27.30%	0.79%	0.22%	26.66%
EMR	76 Outperform	$74.71B	32.87	10.91%	1.58%	2.97%	18.14%
ETN	75 Outperform	$123.43B	31.78	20.69%	1.30%	8.24%	6.21%
ITW	71 Outperform	$72.57B	24.27	91.71%	2.43%	-0.41%	-10.88%
ROK	71 Outperform	$44.45B	51.64	24.24%	1.33%	0.98%	-7.51%
ROP	71 Outperform	$47.90B	30.68	8.16%	0.73%	13.95%	6.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Parker Hannifin Corporate Events

Parker Hannifin Secures Loans for Filtration Group Acquisition

On December 10, 2025, Parker Hannifin Corporation entered into two significant credit agreements to secure financing for its proposed acquisition of Filtration Group Corporation. The agreements include a 364-Day Term Loan Agreement for $5.25 billion and a Three-Year Term Loan Agreement for $2.50 billion, both aimed at providing the necessary funds for the acquisition. These credit facilities are structured as senior unsecured delayed draw term loans, with specific covenants and conditions typical for such financial arrangements. The move is expected to impact the company’s operations by enabling the acquisition, potentially enhancing its market position in the filtration industry.

Parker Hannifin Announces $9.25B Acquisition of Filtration Group

On November 10, 2025, Parker Hannifin Corporation announced its agreement to acquire Filtration Group Corporation for $9.25 billion through a merger. This strategic acquisition is expected to enhance Parker’s filtration technology offerings, with the transaction being financed by new debt and cash on hand. The merger’s completion is contingent upon regulatory approvals and other customary conditions, with a deadline set for February 10, 2027.

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.