📊 PH Key Takeaways
Is Parker-Hannifin Corp (PH) a Good Investment?
Parker-Hannifin demonstrates solid operational fundamentals with strong profitability margins (23.1% operating, 16.1% net) and robust free cash flow generation ($1.5B), positioning it as a financially healthy industrial manufacturer. Despite flat revenue growth, the company maintains healthy liquidity and moderate leverage (0.52x debt/equity), though the slight margin of interest coverage warrants monitoring in a rising rate environment.
Parker-Hannifin shows strong industrial fundamentals, with very high operating profitability, solid free cash flow generation, and a balanced leverage profile. Growth is currently muted at the revenue and net income line, but margins and cash conversion suggest the business remains high quality and financially resilient.
Why Buy Parker-Hannifin Corp Stock? PH Key Strengths
- Strong operating margins of 23.1% indicating efficient cost management and pricing power
- Robust free cash flow of $1.5B with healthy 14.2% FCF margin supporting capital allocation flexibility
- Moderate leverage at 0.52x debt/equity with adequate interest coverage of 6.1x providing financial stability
- Solid net margin of 16.1% demonstrating consistent profitability despite revenue stagnation
- Positive insider activity with 13 Form 4 filings in last 90 days suggesting management confidence
- Strong profitability profile with 27.7% gross margin, 23.1% operating margin, and 16.1% net margin
- Robust cash generation with $1.46B in free cash flow and a 14.2% FCF margin
- Manageable leverage and acceptable coverage, with debt/equity of 0.52x and interest coverage of 6.1x
PH Stock Risks: Parker-Hannifin Corp Investment Risks
- Revenue declined 0.4% YoY indicating potential market headwinds or competitive pressures
- Current ratio of 1.18x is adequate but not conservative, limiting financial flexibility for unexpected challenges
- Quick ratio of 0.66x reveals potential liquidity stress if short-term obligations accelerate without cash conversion
- High long-term debt at $7.5B represents 52% of equity, limiting capacity for major acquisitions or downturns
- Flat to negative growth trajectory raises concerns about market share and competitive positioning
- Revenue growth is slightly negative year over year, indicating soft near-term demand or limited organic expansion
- Net income was essentially flat, so earnings growth may be relying more on capital allocation than business expansion
- Liquidity is adequate but not strong, with a 1.18x current ratio and 0.66x quick ratio
Key Metrics to Watch
- Revenue growth trajectory - need to see positive growth to confirm cyclical trough vs structural decline
- Operating margin stability - monitor for pricing power sustainability and cost inflation impact
- Free cash flow generation - ensure FCF conversion remains >90% of net income amid growth challenges
- Debt service coverage - track interest coverage ratio to ensure financial flexibility remains adequate
- Working capital management - watch current and quick ratios for deterioration signaling operational stress
- Organic revenue growth and order trends
- Free cash flow conversion and interest coverage
Parker-Hannifin Corp (PH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Parker-Hannifin Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
PH Profit Margin, ROE & Profitability Analysis
PH vs Materials Sector: How Parker-Hannifin Corp Compares
How Parker-Hannifin Corp compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Parker-Hannifin Corp Stock Overvalued? PH Valuation Analysis 2026
Based on fundamental analysis, Parker-Hannifin Corp has mixed fundamental signals relative to the Materials 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.
Parker-Hannifin Corp Balance Sheet: PH Debt, Cash & Liquidity
PH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Parker-Hannifin Corp's revenue has grown significantly by 39% over the 5-year period, indicating strong business expansion. The most recent EPS of $16.04 reflects profitable operations.
PH Revenue Growth, EPS Growth & YoY Performance
PH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $4.7B | $845.0M | $6.60 |
| Q1 2026 | $4.9B | $698.0M | $5.34 |
| Q3 2025 | $5.0B | $726.7M | $5.56 |
| Q2 2025 | $4.7B | $682.1M | $5.23 |
| Q1 2025 | $4.8B | $651.1M | $4.99 |
| Q3 2024 | $5.1B | $591.0M | $4.54 |
| Q2 2024 | $4.7B | $395.5M | $3.04 |
| Q1 2024 | $4.2B | $388.0M | $2.98 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Parker-Hannifin Corp Dividends, Buybacks & Capital Allocation
PH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Parker-Hannifin Corp (CIK: 0000076334)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PH
What is the AI rating for PH?
Parker-Hannifin Corp (PH) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PH's key strengths?
Claude: Strong operating margins of 23.1% indicating efficient cost management and pricing power. Robust free cash flow of $1.5B with healthy 14.2% FCF margin supporting capital allocation flexibility. ChatGPT: Strong profitability profile with 27.7% gross margin, 23.1% operating margin, and 16.1% net margin. Robust cash generation with $1.46B in free cash flow and a 14.2% FCF margin.
What are the risks of investing in PH?
Claude: Revenue declined 0.4% YoY indicating potential market headwinds or competitive pressures. Current ratio of 1.18x is adequate but not conservative, limiting financial flexibility for unexpected challenges. ChatGPT: Revenue growth is slightly negative year over year, indicating soft near-term demand or limited organic expansion. Net income was essentially flat, so earnings growth may be relying more on capital allocation than business expansion.
What is PH's revenue and growth?
Parker-Hannifin Corp reported revenue of $10.3B.
Does PH pay dividends?
Parker-Hannifin Corp pays dividends, with $456.0M distributed to shareholders in the trailing twelve months.
Where can I find PH SEC filings?
Official SEC filings for Parker-Hannifin Corp (CIK: 0000076334) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PH's EPS?
Parker-Hannifin Corp has a diluted EPS of $12.89.
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 PH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Parker-Hannifin Corp has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is PH stock overvalued or undervalued?
Valuation metrics for PH: ROE of 11.6% (sector avg: 14%), net margin of 16.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy PH stock in 2026?
Our dual AI analysis gives Parker-Hannifin Corp a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PH's free cash flow?
Parker-Hannifin Corp's operating cash flow is $1.6B, with capital expenditures of $183.0M. FCF margin is 14.2%.
How does PH compare to other Materials stocks?
Vs Materials sector averages: Net margin 16.1% (avg: 10%), ROE 11.6% (avg: 14%), current ratio 1.18 (avg: 1.6).