📊 PCAR Key Takeaways
Is Paccar Inc. (PCAR) a Good Investment?
PACCAR demonstrates solid fundamental profitability with 8.4% net margins and strong free cash flow generation of $3.7B, but significant headwinds are evident from 15.5% revenue decline and 42.9% EPS erosion year-over-year. The company maintains a fortress balance sheet with zero leverage and strong interest coverage of 15.7x, though deteriorating top-line performance and operational challenges in the motor vehicle sector warrant cautious positioning.
PACCAR shows resilient fundamentals despite a meaningful revenue decline, maintaining 10.6% operating margin, flat net income, and strong free cash flow generation. The balance sheet appears very conservative with effectively no net leverage, which supports durability through a cyclical truck market slowdown.
Why Buy Paccar Inc. Stock? PCAR Key Strengths
- Robust free cash flow generation at $3.7B with 12.9% FCF margin demonstrates cash conversion efficiency
- Conservative capital structure with zero debt-to-equity ratio and $3.2B cash position provides financial flexibility
- Maintained 8.4% net margin and 10.6% operating margin despite 15.5% revenue contraction shows operational resilience
- Strong interest coverage ratio of 15.7x indicates excellent debt servicing capability
- Strong free cash flow generation with $3.67B of FCF and a 12.9% FCF margin
- Healthy profitability with 10.6% operating margin and 8.4% net margin despite lower revenue
- Very strong financial health supported by $3.22B cash, 0.00x debt/equity, and 15.7x interest coverage
PCAR Stock Risks: Paccar Inc. Investment Risks
- Sharp 15.5% revenue decline year-over-year signals significant demand weakness in motor vehicle manufacturing sector
- Severe 42.9% diluted EPS deterioration outpaces revenue decline, indicating margin compression and operational challenges
- Capital allocation concerns with $743M capex against $3.7B FCF suggests potential underinvestment in future competitiveness
- Missing gross margin data and incomplete liabilities disclosure limits visibility into cost structure and full leverage assessment
- Revenue fell 15.5% YoY, indicating cyclical demand pressure in core truck markets
- Diluted EPS declined 42.9% YoY, suggesting weaker per-share earnings quality than headline net income implies
- Return metrics are solid but not exceptional for a cyclical manufacturer, leaving less room for further margin compression
Key Metrics to Watch
- Quarterly revenue trends and order backlog recovery indicators
- Gross margin sustainability and manufacturing utilization rates
- Free cash flow consistency and capital expenditure intensity relative to growth investments
- Revenue trend and operating margin in the Trucks segment
- Free cash flow consistency through the cycle
Paccar Inc. (PCAR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
PCAR Profit Margin, ROE & Profitability Analysis
PCAR vs Automotive Sector: How Paccar Inc. Compares
How Paccar Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Paccar Inc. Stock Overvalued? PCAR Valuation Analysis 2026
Based on fundamental analysis, Paccar Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Paccar Inc. Balance Sheet: PCAR Debt, Cash & Liquidity
PCAR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Paccar Inc.'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.76 reflects profitable operations.
PCAR Revenue Growth, EPS Growth & YoY Performance
PCAR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $6.7B | $590.0M | $1.12 |
| Q2 2025 | $7.5B | $723.8M | $1.37 |
| Q1 2025 | $7.4B | $505.1M | $0.96 |
| Q3 2024 | $8.2B | $972.1M | $1.85 |
| Q2 2024 | $8.8B | $1.1B | $2.13 |
| Q1 2024 | $8.5B | $733.9M | $1.40 |
| Q3 2023 | $7.1B | $769.4M | $1.47 |
| Q2 2023 | $7.2B | $720.4M | $1.37 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Paccar Inc. Dividends, Buybacks & Capital Allocation
PCAR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Paccar Inc. (CIK: 0000075362)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PCAR
What is the AI rating for PCAR?
Paccar Inc. (PCAR) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PCAR's key strengths?
Claude: Robust free cash flow generation at $3.7B with 12.9% FCF margin demonstrates cash conversion efficiency. Conservative capital structure with zero debt-to-equity ratio and $3.2B cash position provides financial flexibility. ChatGPT: Strong free cash flow generation with $3.67B of FCF and a 12.9% FCF margin. Healthy profitability with 10.6% operating margin and 8.4% net margin despite lower revenue.
What are the risks of investing in PCAR?
Claude: Sharp 15.5% revenue decline year-over-year signals significant demand weakness in motor vehicle manufacturing sector. Severe 42.9% diluted EPS deterioration outpaces revenue decline, indicating margin compression and operational challenges. ChatGPT: Revenue fell 15.5% YoY, indicating cyclical demand pressure in core truck markets. Diluted EPS declined 42.9% YoY, suggesting weaker per-share earnings quality than headline net income implies.
What is PCAR's revenue and growth?
Paccar Inc. reported revenue of $28.4B.
Does PCAR pay dividends?
Paccar Inc. pays dividends, with $2,267.1M distributed to shareholders in the trailing twelve months.
Where can I find PCAR SEC filings?
Official SEC filings for Paccar Inc. (CIK: 0000075362) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PCAR's EPS?
Paccar Inc. has a diluted EPS of $4.51.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PCAR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Paccar Inc. has a BUY rating with 67% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is PCAR stock overvalued or undervalued?
Valuation metrics for PCAR: ROE of 12.3% (sector avg: 12%), net margin of 8.4% (sector avg: 6%). Higher ROE suggests strong returns relative to peers.
Should I buy PCAR stock in 2026?
Our dual AI analysis gives Paccar Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PCAR's free cash flow?
Paccar Inc.'s operating cash flow is $4.4B, with capital expenditures of $743.0M. FCF margin is 12.9%.
How does PCAR compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 8.4% (avg: 6%), ROE 12.3% (avg: 12%), current ratio N/A (avg: 1.2).