Parker Hannifin (PH) AI Stock Analysis

• Market Cap: $90.69B
• Dividend Yield: 0.94%
• Average Volume (3M): 494.42K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.34
• Revenue Growth: -0.40%
• EPS Growth: 24.40%
• Country: US
• Employees: 61,120
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 7.69
• Shares Outstanding: 126,544,075
• 10 Day Avg. Volume: 462,369
• 30 Day Avg. Volume: 494,424
• 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: 1.09
• Enterprise Value/Revenue: 4.99
• Enterprise Value/Gross Profit: 13.51
• Enterprise Value/Ebitda: 18.28
• 1Y Price Target: $806.71
• Price Target Upside: 10.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 71 Outperform
• Price Target: $793.00 ▲(8.83% Upside)

Parker Hannifin's strong financial performance and positive earnings call are significant strengths, contributing to a robust overall score. However, bearish technical indicators and a high valuation relative to peers pose risks. The company's strategic focus on growth and margin expansion provides a positive outlook, but market challenges remain.

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 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 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 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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.85B	19.85B	19.93B	19.07B	15.86B	14.35B
Gross Profit	7.34B	7.32B	7.16B	6.46B	4.39B	3.90B
EBITDA	5.42B	5.42B	5.03B	4.07B	2.44B	3.09B
Net Income	3.53B	3.53B	2.84B	2.08B	1.32B	1.75B
Balance Sheet
Total Assets	29.49B	29.49B	29.30B	29.96B	25.94B	20.34B
Cash, Cash Equivalents and Short-Term Investments	467.00M	467.00M	422.03M	483.57M	563.66M	772.23M
Total Debt	9.49B	9.49B	10.56B	12.56B	11.48B	6.58B
Total Liabilities	15.80B	15.80B	17.22B	19.63B	17.08B	11.93B
Stockholders Equity	13.68B	13.68B	12.07B	10.33B	8.85B	8.40B
Cash Flow
Free Cash Flow	3.34B	3.34B	2.98B	2.60B	2.21B	2.37B
Operating Cash Flow	3.78B	3.78B	3.38B	2.98B	2.44B	2.58B
Investing Cash Flow	224.00M	224.00M	-298.59M	-8.18B	-418.84M	-13.00K
Financing Cash Flow	-3.98B	-3.98B	-3.11B	-971.04M	3.92B	-2.62B

Parker Hannifin Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 728.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PH, the sentiment is Neutral. The current price of 728.66 is below the 20-day moving average (MA) of 750.42, below the 50-day MA of 747.51, and above the 200-day MA of 675.54, indicating a neutral trend. The MACD of -3.60 indicates Positive momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 12.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PH.

Parker Hannifin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETN	76 Outperform	$143.68B	37.13	20.76%	1.08%	7.66%	9.19%
EMR	73 Outperform	$70.92B	27.07	10.86%	1.65%	4.78%	59.68%
PH	71 Outperform	$90.69B	26.43	27.42%	0.94%	-0.40%	24.40%
ROP	71 Outperform	$54.78B	35.77	8.15%	0.64%	13.59%	6.52%
ROK	70 Outperform	$37.52B	39.16	28.46%	1.54%	-8.23%	-3.29%
ITW	70 Neutral	$71.40B	21.49	109.06%	2.50%	-1.40%	11.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Parker Hannifin Corporate Events

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.