Paccar (PCAR) AI Stock Analysis

• Market Cap: $48.83B
• Dividend Yield: 4.29%
• Average Volume (3M): 2.82M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.89
• Revenue Growth: -11.92%
• EPS Growth: -38.21%
• Country: US
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.37
• Shares Outstanding: 525,103,400
• 10 Day Avg. Volume: 2,548,537
• 30 Day Avg. Volume: 2,819,157
• 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: 1.18
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 10.49
• Enterprise Value/Ebitda: 11.36
• 1Y Price Target: $102.33
• Price Target Upside: 10.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 75 Outperform
• Price Target: $110.00 ▲(18.28% Upside)

Paccar's overall stock score reflects strong financial performance and attractive valuation, supported by robust earnings and a solid dividend yield. Technical analysis indicates mixed signals, with potential short-term weakness but longer-term support. The earnings call provides a positive outlook, though tariff uncertainties and South American market challenges present risks.

Positive Factors

Strong Financial Performance

PACCAR's robust financial performance, with significant revenues and net income, indicates strong operational efficiency and market demand, supporting long-term growth and stability.

Record Revenues in PACCAR Parts

Record revenues in PACCAR Parts highlight the strength of the aftermarket segment, providing a stable revenue stream and enhancing customer loyalty, crucial for sustained business success.

Positive Outlook for North American Truck Market

A positive outlook for the North American truck market suggests continued demand for PACCAR's products, supporting future revenue growth and market share expansion.

Negative Factors

Revenue Decline

A decline in revenue growth indicates potential market saturation or competitive pressures, which could hinder PACCAR's ability to sustain its growth trajectory.

Uncertainty in Tariff Structures

Tariff uncertainties pose risks to cost structures and pricing strategies, potentially impacting PACCAR's profitability and market competitiveness over the long term.

Challenges in South American Market

Economic challenges in South America, such as high interest rates, may limit PACCAR's growth opportunities in the region, affecting overall global market expansion.

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, which includes heavy-duty and medium-duty vehicles. The company also earns income from aftermarket parts and services, which provide ongoing support and maintenance for its trucks. Additionally, Paccar's financial services division contributes to its revenue by offering financing solutions to customers for truck purchases. The company benefits from strong relationships with its dealer network, which enhances sales and service capabilities. Significant partnerships with manufacturers and suppliers in the automotive and technology sectors also play a role in driving innovation and efficiencies, thereby contributing to Paccar's earnings.

Paccar Financial Statement Overview

Summary

Paccar demonstrates strong financial performance with consistent profitability, efficient asset utilization, and robust cash generation. Despite a slight revenue decline, the company maintains strong EBIT and EBITDA margins. The balance sheet shows moderate leverage with a healthy equity ratio, and cash flow is strong, supporting future investments.

Income Statement

Paccar's income statement shows solid profitability with a gross profit margin of 17.8% and a net profit margin of 10.7% for TTM. Despite a slight decline in revenue by 3.9% compared to the previous annual report, the company maintains strong EBIT and EBITDA margins at 13.3% and 16.0%, respectively. The consistent profitability and efficient cost management highlight the company's strong competitive position in the industry.

Balance Sheet

The balance sheet reflects a healthy financial structure with a debt-to-equity ratio of 0.87, indicating moderate leverage. The equity ratio stands at 42.2%, demonstrating a solid capital position. Return on equity is robust at 19.3%, showcasing effective utilization of shareholders' equity. However, the high absolute levels of debt could pose risks if interest rates rise or market conditions deteriorate.

Cash Flow

Paccar's cash flow statement is strong, with a free cash flow to net income ratio of 0.68, indicating good cash generation relative to profits. The operating cash flow to net income ratio of 1.18 suggests efficient conversion of earnings into cash. Although free cash flow declined by 18.4%, the company maintains a solid cash position, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.10B	33.65B	35.16B	28.84B	23.54B	18.72B
Gross Profit	5.48B	6.37B	7.25B	4.74B	3.28B	2.55B
EBITDA	5.06B	6.35B	6.63B	4.65B	3.27B	2.56B
Net Income	3.07B	4.16B	4.60B	3.01B	1.87B	1.30B
Balance Sheet
Total Assets	44.09B	43.42B	40.82B	33.28B	29.51B	28.26B
Cash, Cash Equivalents and Short-Term Investments	8.46B	9.84B	9.00B	6.31B	4.99B	4.97B
Total Debt	15.94B	15.89B	14.38B	11.68B	10.76B	11.31B
Total Liabilities	25.15B	25.91B	24.94B	20.11B	17.92B	17.87B
Stockholders Equity	18.94B	17.51B	15.88B	13.17B	11.59B	10.42B
Cash Flow
Free Cash Flow	2.88B	2.90B	2.93B	1.64B	553.90M	1.35B
Operating Cash Flow	4.48B	4.64B	4.19B	3.03B	2.19B	2.99B
Investing Cash Flow	-3.93B	-4.49B	-2.87B	-2.03B	-1.36B	-1.88B
Financing Cash Flow	-969.60M	-123.10M	1.10B	304.90M	-882.90M	-1.81B

Paccar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 93.00
• 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 93 is below the 20-day moving average (MA) of 98.34, below the 50-day MA of 98.60, and below the 200-day MA of 98.37, indicating a bearish trend. The MACD of -1.03 indicates Positive momentum. The RSI at 35.71 is Neutral, neither overbought nor oversold. The STOCH value of 2.39 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
PCAR	75 Outperform	$48.83B	15.94	16.77%	4.29%	-11.92%	-38.21%
OSK	72 Outperform	$7.95B	12.47	15.52%	1.60%	0.41%	-3.90%
CAT	66 Neutral	$230.16B	24.98	52.73%	1.17%	-4.87%	-10.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DE	63 Neutral	$120.66B	23.33	21.59%	1.45%	-20.63%	-34.82%
AGCO	61 Neutral	$7.74B	78.00	2.42%	1.46%	-24.27%	-76.31%
CNH	56 Neutral	$12.63B	15.37	10.79%	2.48%	-21.70%	-57.68%

Paccar Corporate Events

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.