NYSE · Industrials

Parker-Hannifin Corporation

PH · Specialty Industrial Machinery

$862.66

▼ -19.57 (-2.22%)

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Mr. Market is currently offering Parker-Hannifin Corporation at $862.66.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 36.9%

Operating Margin 20.5%

Net Income Margin 17.8%

Fin. Health C

Years to Pay Off Debt 2.6 yrs

Working Capital vs Long-Term Debt -$6.4B

Working Capital $1.1B

Valuation F

Margin of Safety 0.0%

Price-to-Book 7.96x

Cash Flow A

Free Cash Flow $3.3B

CapEx % of Net Income 12.3%

Owner Earnings $4.9B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $108.9B

Enterprise Value $120.4B

P/E (TTM) 31.86

Dividend Yield 0.82%

Exchange NYSE

Key Margins

Gross Profit 36.9%

Operating Margin 20.5%

Net Margin 17.8%

Company Info

Sector Industrials

Industry Specialty Industrial Machinery

Employees 57950

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Parker-Hannifin Corporation at $862.66.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $862.66, the stock trades at a 235% premium to its Graham Number of $257.19. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Parker-Hannifin Corporation

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for aerospace and defense, in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets in North America, Europe, Asia Pacific, and Latin America. The company operates through two segments: Diversified Industrial and Aerospace Systems. It offers various motion-control systems and components, such as active and passive vibration control, high purity sealing, coatings, high temperature sealing, cryogenic valves and fittings, HVAC/R controls and monitoring, elastomeric, fabric reinforced, metal, precision cut seals, hydrogen and natural gas filters, electric and hydraulic pumps and motors, industrial air, gas filtration, electric and hydraulic valves, miniature pumps and valves, electromagnetic interface shielding, pneumatic actuators, regulators and valves, electromechanical and hydraulic actuators, power take offs, electronics, drives and controllers, process filtration solutions, engine filtration solutions, rubber to substrate adhesives, fluid condition monitoring, sensors and diagnostics, fluid conveyance hose and tubing, structural adhesives, high pressure connectors, fittings, valves and regulators, thermal management, high purity fittings. The company also provides products for use in commercial and defense airframe and engine programs, such as avionics, electric and hydraulic braking systems, electric power, electromechanical actuators, engine exhaust systems and components, fire detection and suppression, flight control systems, fluid conveyance, fuel systems and components, fuel tank inserting systems, hydraulic pumps and motors, hydraulic valves and actuators, pneumatics, seals, sensors, and thermal management products. The company sells its products to original equipment manufacturers, distributors, direct-sales employees. Parker-Hannifin Corporation was founded in 1917 and is headquartered in Cleveland, Ohio.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	36.9% ▲	35.8%	33.7%	33.5%	N/A
Operating Margin %	20.5% ▲	19.1%	16.1%	17.7%	N/A
Net Income %	17.8% ▲	14.3%	10.9%	8.3%	N/A
Diluted EPS	27.12 ▲	21.84	16.04	10.09	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$29.5B	$29.3B	$30.0B	$25.9B	N/A
Total Debt	$9.3B ↓	$10.6B	$12.6B	$11.5B	N/A
Working Capital	$1.1B ▲	-$514M	-$901M	$6.2B	N/A
Years to Pay Debt	2.63	3.71	6.03	8.73	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$3.3B ▲	$3.0B	$2.6B	$2.2B	N/A
Owner Earnings	$4.9B	$4.2B	$3.3B	$2.1B	N/A
CapEx % of Net Income	12.3%	14.1%	18.3%	17.5%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	30,660	10,450	-16,206	1,317
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	5,204,000	4,978,000	4,145,000	2,434,121
Total Unusual Items	219,000	50,000	-73,000	7,121
Total Unusual Items Excluding Goodwill	219,000	50,000	-73,000	7,121
Net Income From Continuing Operation Net Minority Interest	3,531,000	2,844,000	2,083,000	1,315,605
Reconciled Depreciation	907,000	927,000	818,000	571,764
Reconciled Cost Of Revenue	12,535,000	12,802,000	12,636,000	10,550,309
EBITDA	5,423,000	5,028,000	4,072,000	2,441,242
EBIT	4,516,000	4,101,000	3,254,000	1,869,478
Net Interest Income	-398,000	-491,000	-528,000	-255,252
Interest Expense	409,000	506,000	574,000	255,252
Interest Income	11,000	15,000	46,000	10,000
Normalized Income	3,342,660	2,804,450	2,139,794	1,309,801
Net Income From Continuing And Discontinued Operation	3,531,000	2,844,000	2,083,000	1,315,605
Total Expenses	15,790,000	16,117,000	15,990,000	13,054,370
Diluted Average Shares	130,200	130,240	129,822	130,356
Basic Average Shares	128,300	128,507	128,368	128,539
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	3,531,000	2,844,000	2,083,000	1,315,605
Net Income Common Stockholders	3,531,000	2,844,000	2,083,000	1,315,605
Net Income	3,531,000	2,844,000	2,083,000	1,315,605
Minority Interests	-1,000	-1,000	-1,000	-581
Net Income Including Noncontrolling Interests	3,532,000	2,845,000	2,084,000	1,316,186
Net Income Continuous Operations	3,532,000	2,845,000	2,084,000	1,316,186
Tax Provision	575,000	750,000	596,000	298,040
Pretax Income	4,107,000	3,595,000	2,680,000	1,614,226
Other Income Expense	445,000	273,000	133,000	-937,760
Other Non Operating Income Expenses	48,000	71,000	82,000	-944,881
Special Income Charges	265,000	12,000	363,000	7,121
Gain On Sale Of Ppe		11,597	362,526	7,121	109,332
Gain On Sale Of Business	273,000	12,000	363,000
Other Special Charges	8,000			8,000
Restructuring And Mergern Acquisition			0	52,000	0
Earnings From Equity Interest	178,000	152,000	124,000	76,000
Gain On Sale Of Security	-46,000	38,000	-436,000	-1,015,000
Net Non Operating Interest Income Expense	-398,000	-491,000	-528,000	-255,252
Interest Expense Non Operating	409,000	506,000	574,000	255,252
Interest Income Non Operating	11,000	15,000	46,000	10,000
Operating Income	4,060,000	3,813,000	3,075,000	2,807,238
Operating Expense	3,255,000	3,315,000	3,354,000	2,504,061
Selling General And Administration	3,255,000	3,315,000	3,354,000	2,504,061
General And Administrative Expense	3,255,000	3,315,000	3,354,000	2,504,061
Other Gand A	3,255,000	3,315,000	3,354,000	2,504,061
Salaries And Wages		-73,000	-67,000	4,000	49,000
Gross Profit	7,315,000	7,128,000	6,429,000	5,311,299
Cost Of Revenue	12,535,000	12,802,000	12,636,000	10,550,309
Total Revenue	19,850,000	19,930,000	19,065,000	15,861,608
Operating Revenue	19,850,000	19,930,000	19,065,000	15,861,608

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	54,400	52,442	52,613	52,595
Ordinary Shares Number	126,646	128,604	128,433	128,451
Share Issued	181,046	181,046	181,046	181,046
Net Debt	8,818,000	10,138,000	12,084,277	10,944,336
Total Debt	9,285,000	10,560,000	12,559,459	11,480,135
Tangible Book Value	-4,386,000	-6,251,000	-8,752,320	-2,027,888
Invested Capital	22,967,000	22,632,000	22,886,347	20,328,146
Working Capital	1,131,000	-514,000	-901,141	6,187,326
Net Tangible Assets	-4,386,000	-6,251,000	-8,752,320	-2,027,888
Common Stock Equity	13,682,000	12,072,000	10,326,888	8,848,011
Total Capitalization	21,176,000	19,229,000	19,123,172	18,603,836
Total Equity Gross Minority Interest	13,691,000	12,081,000	10,338,279	8,859,920
Minority Interest	9,000	9,000	11,391	11,909
Stockholders Equity	13,682,000	12,072,000	10,326,888	8,848,011
Gains Losses Not Affecting Retained Earnings	-883,000	-1,438,000	-1,292,872	-1,543,198
Other Equity Adjustments	-883,000	-1,438,000	-1,292,872	-1,543,198
Treasury Stock	7,495,000	5,950,000	5,817,787	5,688,429
Retained Earnings	21,775,000	19,105,000	17,041,502	15,661,808
Additional Paid In Capital	194,000	264,000	305,522	327,307
Capital Stock	91,000	91,000	90,523	90,523
Common Stock	91,000	91,000	90,523	90,523
Total Liabilities Net Minority Interest	15,803,000	17,217,000	19,626,193	17,084,023
Total Non Current Liabilities Net Minority Interest	9,984,000	9,904,000	11,890,823	11,224,705
Other Non Current Liabilities	733,000	726,000	893,355	521,897
Employee Benefits	267,000	437,000	551,510	639,939
Non Current Pension And Other Postretirement Benefit Plans	267,000	437,000	551,510	639,939
Non Current Deferred Liabilities	1,490,000	1,584,000	1,649,674	307,044
Non Current Deferred Taxes Liabilities	1,490,000	1,584,000	1,649,674	307,044
Long Term Debt And Capital Lease Obligation	7,494,000	7,157,000	8,796,284	9,755,825
Long Term Debt	7,494,000	7,157,000	8,796,284	9,755,825
Current Liabilities	5,819,000	7,313,000	7,735,370	5,859,318
Current Debt And Capital Lease Obligation	1,791,000	3,403,000	3,763,175	1,724,310
Current Debt	1,791,000	3,403,000	3,763,175	1,724,310
Other Current Borrowings	7,000	1,255,000
Current Notes Payable	1,784,000	2,148,000	3,763,175	1,724,310
Payables And Accrued Expenses	4,028,000	3,910,000	3,972,195	4,135,008
Current Accrued Expenses	1,520,000	1,563,000	1,546,690	2,152,791
Payables	2,508,000	2,347,000	2,425,505	1,982,217
Total Tax Payable	382,000	355,000	374,571	250,292
Accounts Payable	2,126,000	1,992,000	2,050,934	1,731,925
Total Assets	29,494,000	29,298,000	29,964,472	25,943,943
Total Non Current Assets	22,544,000	22,499,000	23,130,243	13,897,299
Other Non Current Assets	1,269,000	1,207,000	1,104,576
Non Current Deferred Assets	270,000	93,000	81,429	110,585
Non Current Deferred Taxes Assets	270,000	93,000	81,429	110,585
Investments And Advances			1,104,576	788,057	774,239
Long Term Equity Investment			1,104,576	788,057	774,239
Goodwill And Other Intangible Assets	18,068,000	18,323,000	19,079,208	10,875,899
Other Intangible Assets	7,374,000	7,816,000	8,450,614	3,135,817
Goodwill	10,694,000	10,507,000	10,628,594	7,740,082
Net PPE	2,937,000	2,876,000	2,865,030	2,122,758
Accumulated Depreciation	-4,480,000	-4,199,000	-4,000,515	-3,775,197
Gross PPE	7,417,000	7,075,000	6,865,545	5,897,955
Construction In Progress	333,000	349,000	342,289	204,020
Machinery Furniture Equipment	4,432,000	4,217,000	4,086,334	3,588,106
Buildings And Improvements	2,241,000	2,129,000	2,051,546	1,783,805
Land And Improvements	411,000	380,000	385,376	322,024
Current Assets	6,950,000	6,799,000	6,834,229	12,046,644
Other Current Assets	153,000	140,000	314,704
Prepaid Assets	263,000	253,000	306,314	6,383,169
Inventory	2,839,000	2,787,000	2,907,879	2,214,553
Finished Goods	778,000	778,000	794,128	811,702
Work In Process	1,485,000	1,421,000	1,488,665	1,128,501
Raw Materials	576,000	588,000	625,086	274,350
Receivables	3,228,000	3,197,000	3,136,464	2,885,261
Other Receivables	234,000	238,000	206,879	440,199
Notes Receivable	84,000	93,000	102,288	103,558
Accounts Receivable	2,910,000	2,866,000	2,827,297	2,341,504
Allowance For Doubtful Accounts Receivable	-10,000	-21,000	-32,000	-10,000
Gross Accounts Receivable	2,920,000	2,887,000	2,859,297	2,351,504
Cash Cash Equivalents And Short Term Investments	467,000	422,000	475,182	563,661
Other Short Term Investments			8,390	27,862	39,116
Cash And Cash Equivalents	467,000	422,000	475,182	535,799

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	3,341,000	2,984,000	2,599,000	2,211,686
Repurchase Of Capital Stock	-1,766,000	-332,000	-297,000	-460,056
Repayment Of Debt	-2,105,000	-2,385,000	-2,341,000	-18,737
Issuance Of Debt	751,000	383,000	2,381,000	5,020,082
Capital Expenditure	-435,000	-400,000	-381,000	-230,044
Interest Paid Supplemental Data	384,000	491,000	465,000	240,313
Income Tax Paid Supplemental Data	927,000	852,000	411,000	549,223
End Cash Position	467,000	422,000	475,000	6,647,876
Beginning Cash Position	422,000	475,000	6,648,000	733,117
Effect Of Exchange Rate Changes	22,000	-24,000	-5,000	-23,770
Changes In Cash	23,000	-29,000	-6,168,000	5,938,529
Financing Cash Flow	-3,977,000	-3,115,000	-971,000	3,915,636
Cash Flow From Continuing Financing Activities	-3,977,000	-3,115,000	-971,000	3,915,636
Net Other Financing Charges		-3,000	-13,000	-58,629
Proceeds From Stock Option Exercised	4,000	4,000	3,000	2,831
Cash Dividends Paid	-861,000	-782,000	-704,000	-569,855
Common Stock Dividend Paid	-861,000	-782,000	-704,000	-569,855
Net Common Stock Issuance	-1,766,000	-332,000	-297,000	-460,056
Common Stock Payments	-1,766,000	-332,000	-297,000	-460,056
Net Issuance Payments Of Debt	-1,354,000	-2,002,000	40,000	5,001,345
Net Short Term Debt Issuance	-364,000	359,000	358,000	1,422,026
Short Term Debt Payments	-364,000				-723,496
Short Term Debt Issuance		359,000	358,000	1,422,026
Net Long Term Debt Issuance	-990,000	-2,361,000	-318,000	3,579,319
Long Term Debt Payments	-1,741,000	-2,385,000	-2,341,000	-18,737
Long Term Debt Issuance	751,000	24,000	2,023,000	3,598,056
Investing Cash Flow	224,000	-298,000	-8,177,000	-418,837
Cash Flow From Continuing Investing Activities	224,000	-298,000	-8,177,000	-418,837
Net Other Investing Changes	4,000	15,000	269,000	-235,426
Net Investment Purchase And Sale	0	0	-1,405,000	3,914
Sale Of Investment		24,292	56,786	31,809	79,419
Purchase Of Investment	0	0	-1,405,000	-27,895
Net Business Purchase And Sale	623,000	78,000	-6,673,000	3,366
Sale Of Business	623,000	78,000	473,000	3,366
Purchase Of Business	0	0	-7,146,000	0
Net PPE Purchase And Sale	32,000	9,000	13,000	39,353
Sale Of PPE	32,000	9,000	13,000	39,353
Capital Expenditure Reported	-435,000	-400,000	-381,000	-230,044
Operating Cash Flow	3,776,000	3,384,000	2,980,000	2,441,730
Cash Flow From Continuing Operating Activities	3,776,000	3,384,000	2,980,000	2,441,730
Change In Working Capital	-305,000	-545,000	141,000	743,394
Change In Other Working Capital	-21,000	-80,000	-109,000	1,822
Change In Other Current Liabilities	-43,000	-146,000	-73,000	-41,836
Change In Other Current Assets	-74,000	-132,000	-139,000	-11,167
Change In Payables And Accrued Expense	-70,000	-154,000	394,000	1,148,205
Change In Accrued Expense	-171,000	-137,000	200,000	984,307
Change In Payable	101,000	-17,000	194,000	163,898
Change In Account Payable	119,000	-44,000	92,000	131,384
Change In Tax Payable	-18,000	27,000	102,000	32,514
Change In Income Tax Payable	-18,000	27,000	102,000	32,514
Change In Prepaid Assets	-9,000	-49,000	32,000	37,630
Change In Inventory	-94,000	101,000	53,000	-212,134
Change In Receivables	6,000	-85,000	-17,000	-179,126
Changes In Account Receivables	6,000	-85,000	-17,000	-179,126
Other Non Cash Items	14,000	20,000	18,000	70,443
Stock Based Compensation	159,000	155,000	143,000	137,093
Deferred Tax	-304,000	32,000	92,000	-351,201
Deferred Income Tax	-304,000	32,000	92,000	-351,201
Depreciation Amortization Depletion	907,000	927,000	818,000	571,764
Depreciation And Amortization	907,000	927,000	818,000	571,764
Amortization Cash Flow	553,000	578,000	501,000	314,450
Amortization Of Intangibles	553,000	578,000	501,000	314,450
Depreciation	354,000	349,000	317,000	257,314
Operating Gains Losses	-227,000	-50,000	-316,000	-45,949
Gain Loss On Investment Securities		-5,708	-6,176	1,159	-24,186
Net Foreign Currency Exchange Gain Loss	46,000	-38,000	46,000	-39,987
Gain Loss On Sale Of PPE	-20,000	12,000	4,000	-5,727
Gain Loss On Sale Of Business	-253,000	-24,000	-366,000	-1,394
Net Income From Continuing Operations	3,532,000	2,845,000	2,084,000	1,316,186

These metrics estimate what Parker-Hannifin Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$257.19

Margin of Safety

Market Cap ÷ Company Value

1.55

P/B Ratio

7.96

Warren's Owner Earnings

$4.9B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$19.9B

vs > $1.5B revenue

❌ Strong Financial Condition

1.19x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

0.82%

vs Uninterrupted dividends

✅ Earnings Growth

+168.8% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

31.9x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

7.96x P/B (P/E×P/B: 253.5)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-70.14

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$357.41

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	12.3%	14.1%	18.3%	17.5%	N/A
Repurchase of Capital Stock	-$1.8B	-$332M	-$297M	-$460M	N/A
Free Cash Flow	$3.3B ▲	$3.0B ▲	$2.6B ▲	$2.2B •	N/A •
Warren's Owner Earnings	$4.9B	$4.2B	$3.3B	$2.1B	N/A

Peers & Industry

No auto-detected peers for Specialty Industrial Machinery. You can manually compare PH against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.19%

Low — management has little skin in the game

Return on Equity (ROE)

25.8%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

12.0%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$1.8B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-12.1% YoY

Debt is declining — management is deleveraging

Leadership Team

Jennifer Parmentier

Chairman of the Board & CEO

Age 58

Pay: $6,063,164

0.172% of net income

Andrew Ross

President & COO

Age 58

Pay: $2,864,723

0.081% of net income

Todd Leombruno

Executive VP & CFO

Age 55

Pay: $2,792,907

0.079% of net income

Patrick Scott

VP & President of Fluid Connectors Group

Age 46

Pay: $1,933,650

0.055% of net income

Jeffrey Miller

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	8.83%	11,142,535
Blackrock Inc.	7.60%	9,590,971
State Street Corporation	7.48%	9,441,059
Procyon Advisors, LLC	4.02%	5,069,377
FMR, LLC	3.22%	4,067,747
Bank of America Corporation	3.11%	3,926,896
Geode Capital Management, LLC	2.20%	2,772,207
Aristotle Capital Management, LLC	2.15%	2,714,350

Risk Analysis

Beta (Market Risk)

1.18

Moderate volatility — moves slightly more than market

Short Interest

1.1% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.66x

Conservative balance sheet — low financial risk

Current Ratio

1.13x

Adequate liquidity

52-Week Price Range

Low: $608.31 Current: $862.66 High: $1,034.96

Currently at 60% of 52-week range

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