tiprankstipranks
Trending News
More News >
Parker Hannifin (PH)
NYSE:PH
Advertisement

Parker Hannifin (PH) AI Stock Analysis

Compare
1,427 Followers

Top Page

PH

Parker Hannifin

(NYSE:PH)

Select Model
Select Model
Select Model
Outperform 79 (OpenAI - 4o)
Rating:79Outperform
Price Target:
$844.00
â–²(12.03% Upside)
Parker Hannifin's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis supports a bullish trend, while the valuation reflects a premium pricing. The company's strategic focus on growth and margin expansion further enhances its outlook.
Positive Factors
Cash Flow Generation
Strong cash flow generation supports Parker Hannifin's ability to fund operations, invest in growth opportunities, and return capital to shareholders, ensuring long-term financial stability.
Aerospace Segment Growth
The aerospace segment's robust growth and margin expansion highlight Parker Hannifin's strong market position and ability to capitalize on industry trends, contributing to sustained revenue growth.
Strategic Acquisition
The acquisition of Curtis Instruments will enhance Parker Hannifin's product offerings and competitive position in electrification, supporting long-term growth and innovation.
Negative Factors
Challenged Transportation Market
Declines in the transportation market could affect Parker Hannifin's revenue growth, as delayed purchases and cost uncertainties impact demand in this key segment.
International Market Challenges
Flat international orders and negative growth in EMEA highlight challenges in global markets, potentially limiting Parker Hannifin's expansion and revenue diversification efforts.
Off-Highway Segment Weakness
Weakness in the off-highway segment indicates potential revenue pressures, as recovery in related markets may take time, impacting Parker Hannifin's short-term growth prospects.

Parker Hannifin (PH) vs. SPDR S&P 500 ETF (SPY)

Parker Hannifin Business Overview & Revenue Model

Company DescriptionParker 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 MoneyParker 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Provides insight into which business segments are generating the most sales, indicating the company's strategic focus and potential areas for expansion or retraction.
Chart InsightsParker Hannifin's Aerospace Systems segment is experiencing robust growth, driven by strong aftermarket demand in defense and commercial markets, with a 12% year-over-year increase. This contrasts with the Diversified Industrial segment, which faces challenges from softness in transportation and energy markets, contributing to a sales decline. Despite these hurdles, Parker's strategic focus on pricing and supply chain actions is mitigating tariff impacts, and the company remains confident, as evidenced by a 10% dividend increase and strong cash flow performance.
Data provided by:Main Street Data

Parker Hannifin Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements including record financial performance, strong segment growth, and strategic acquisitions, contrasted by challenges in specific markets like transportation and international orders. The company's outlook remains optimistic with a focus on continued margin expansion and strategic growth initiatives.
Q4-2025 Updates
Positive Updates
Record Fiscal Year 2025 Performance
Achieved top quartile safety performance with a 17% reduction in incident rate, record engagement survey results, and top line sales of $19.9 billion. Record adjusted segment operating margin of 26.1% and EBITDA margin of 26.4%.
Aerospace Segment Growth
Aerospace delivered record sales of $6.2 billion, 13% organic growth, and 190 basis points of adjusted segment operating margin expansion with a record backlog of $7.4 billion.
Industrial Segment Margin Expansion
The Industrial segment achieved a record adjusted segment operating margin of 25.1%, marking a 90 basis point increase over the prior year.
Strong Cash Flow and Capital Deployment
Generated record cash flow from operations of $3.8 billion, with a free cash flow of $3.3 billion, representing 109% conversion. Year-to-date share repurchases amounted to $1.6 billion.
Strategic Acquisition of Curtis Instruments
Announced the intent to acquire Curtis Instruments, which will expand electrification offerings and enhance capabilities in control solutions, expecting closure by the end of the calendar year.
Q4 Record Performance
Q4 results showed continued margin expansion, with adjusted segment operating margin at 26.9%, up 160 basis points from the prior year, and adjusted EPS up 14% to $7.69.
Negative Updates
Challenged Transportation Market
Forecasting a mid-single-digit organic decline in the transportation market due to end-users delaying purchases amid cost uncertainties and emission requirements.
Off-Highway Segment Weakness
Forecasting a low single-digit decline in the off-highway market, with the ag market past its trough but still needing time before returning to positive.
International Market Challenges
International orders were flat, with EMEA remaining negative at -3% organic growth, and challenging comps affecting performance in Asia Pacific.
Company Guidance
During the Parker Hannifin Corporation's fiscal year 2025 fourth quarter and full year earnings call, significant guidance metrics for fiscal year 2026 were discussed. The company expects reported sales growth to range from 2% to 5%, with organic growth projected between 1.5% and 4.5%. Aerospace is forecasted to achieve high single-digit growth, while Industrial North America and International are expected to grow by approximately 1%. The adjusted segment operating margin is anticipated to reach 26.5% at the midpoint, representing a 40 basis point increase from the previous year. The company also projected an adjusted EPS of $28.90, a 6% increase, with a tax rate of 22.5%. Additionally, free cash flow is expected to be between $3 billion and $4 billion, with a conversion of approximately 100%.

Parker Hannifin Financial Statement Overview

Summary
Parker Hannifin demonstrates strong financial performance with significant revenue and profit growth, a solid balance sheet with improving leverage, and effective cash flow management. These factors contribute to a positive financial outlook, positioning the company well for future growth and stability.
Income Statement
85
Very Positive
Parker Hannifin has demonstrated strong revenue growth over the years, with a notable increase in gross profit and net profit margins. The company has maintained healthy EBIT and EBITDA margins, indicating operational efficiency. The revenue growth rate has been impressive, particularly in recent years, showcasing the company's ability to expand its market presence.
Balance Sheet
78
Positive
The company's balance sheet reflects a solid equity position with a decreasing debt-to-equity ratio over time, indicating improved financial leverage. Return on equity has been strong, although it showed a decline in the most recent year. The equity ratio suggests a stable asset base, supporting long-term financial health.
Cash Flow
82
Very Positive
Parker Hannifin's cash flow statements reveal consistent free cash flow growth, supporting its ability to fund operations and investments. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio remains strong, underscoring effective cash management.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue19.85B19.85B19.93B19.07B15.86B14.35B
Gross Profit7.34B7.32B7.16B6.46B4.39B3.90B
EBITDA5.42B5.42B5.03B4.07B2.44B3.09B
Net Income3.53B3.53B2.84B2.08B1.32B1.75B
Balance Sheet
Total Assets29.49B29.49B29.30B29.96B25.94B20.34B
Cash, Cash Equivalents and Short-Term Investments467.00M467.00M422.03M483.57M563.66M772.23M
Total Debt9.49B9.49B10.56B12.56B11.48B6.58B
Total Liabilities15.80B15.80B17.22B19.63B17.08B11.93B
Stockholders Equity13.68B13.68B12.07B10.33B8.85B8.40B
Cash Flow
Free Cash Flow3.34B3.34B2.98B2.60B2.21B2.37B
Operating Cash Flow3.78B3.78B3.38B2.98B2.44B2.58B
Investing Cash Flow224.00M224.00M-298.59M-8.18B-418.84M-13.00K
Financing Cash Flow-3.98B-3.98B-3.11B-971.04M3.92B-2.62B

Parker Hannifin Technical Analysis

Technical Analysis Sentiment
Positive
Last Price753.34
Price Trends
50DMA
747.25
Positive
100DMA
717.07
Positive
200DMA
674.21
Positive
Market Momentum
MACD
2.22
Positive
RSI
50.05
Neutral
STOCH
45.78
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 753.34 is below the 20-day moving average (MA) of 755.64, above the 50-day MA of 747.25, and above the 200-day MA of 674.21, indicating a neutral trend. The MACD of 2.22 indicates Positive momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 45.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PH.

Parker Hannifin Risk Analysis

Parker Hannifin disclosed 21 risk factors in its most recent earnings report. Parker Hannifin reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Parker Hannifin Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$94.99B27.6827.42%0.91%-0.40%24.40%
76
Outperform
$144.41B37.3220.76%1.08%7.66%9.19%
73
Outperform
$74.00B28.2410.86%1.59%4.78%59.68%
73
Outperform
$39.19B40.9028.46%1.51%-8.23%-3.29%
71
Outperform
$54.94B35.888.15%0.63%13.59%6.52%
70
Neutral
$74.55B22.44109.06%2.42%-1.40%11.65%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PH
Parker Hannifin
753.34
128.05
20.48%
ETN
Eaton
376.70
44.06
13.25%
EMR
Emerson Electric Company
132.94
23.89
21.91%
ITW
Illinois Tool Works
252.75
2.07
0.83%
ROK
Rockwell Automation
348.11
84.51
32.06%
ROP
Roper Technologies
520.00
-16.14
-3.01%

Parker Hannifin Corporate Events

Executive/Board Changes
Parker Hannifin Appoints Beth Wozniak as New Director
Neutral
Sep 2, 2025

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.

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.Date of analysis: Aug 19, 2025