NYSE · Industrials

Parker-Hannifin Corporation

PH · Specialty Industrial Machinery

$953.27

▲ 7.3 (0.77%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 36.8%

Operating Margin 20.7%

Net Income Margin 16.5%

Fin. Health

D⤢

Years to Pay Off Debt 10.6 yrs

Working Capital vs Long-Term Debt -$5.9B

Working Capital $871M

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 8.23x

Cash Flow

A⤢

Free Cash Flow $881M

CapEx % of Net Income 11.4%

Owner Earnings $1.2B

Profitability

Gross Profit Margin 36.8%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 20.7%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 16.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 10.6 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$5.9B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $871M

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $881M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 11.4%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $1.2B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

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

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.

Market Data

Market Cap $120.2B

Enterprise Value $127.4B

P/E (TTM) 35.15

Dividend Yield 0.76%

Exchange NYSE

Key Margins

Gross Profit 36.8%

Operating Margin 20.7%

Net Margin 16.5%

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 $953.27.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $953.27, the stock trades at a 603% premium to its Graham Number of $135.67. 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: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	36.8%▼	37.3%•	N/A
Operating Margin %	20.7%▼	21.1%•	N/A
Net Income %	16.5%▲	16.3%•	N/A
Diluted EPS	7.06▲	6.60•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q3 2024
Total Assets	$30.7B	$30.5B	N/A
Total Debt	$9.6B▼	$9.9B•	N/A
Working Capital	$871M▼	$1.1B•	N/A
Years to Pay Debt	10.60	11.68	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$881M▲	$768M•	N/A
Owner Earnings	$1.2B	$1.2B	N/A
CapEx % of Net Income	11.4%	11.1%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	2,688	2,472
Tax Rate For Calcs	0	0
Normalized EBITDA	1,439,000	1,391,000
Total Unusual Items	14,000	12,000
Total Unusual Items Excluding Goodwill	14,000	12,000
Net Income From Continuing Operation Net Minority Interest	904,000	845,000
Reconciled Depreciation	235,000	233,000
Reconciled Cost Of Revenue	3,469,000	3,243,000
EBITDA	1,453,000	1,403,000
EBIT	1,218,000	1,170,000
Net Interest Income	-97,000	-104,000
Interest Expense	99,000	106,000
Interest Income	2,000	2,000
Normalized Income	892,688	835,472
Net Income From Continuing And Discontinued Operation	904,000	845,000
Total Expenses	4,353,000	4,080,000
Diluted Average Shares	128,000	128,100
Basic Average Shares	126,200	126,200
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	904,000	845,000
Net Income Common Stockholders	904,000	845,000
Net Income	904,000	845,000
Minority Interests	0		-107
Net Income Including Noncontrolling Interests	904,000	845,000
Net Income Continuous Operations	904,000	845,000
Tax Provision	215,000	219,000
Pretax Income	1,119,000	1,064,000
Other Income Expense	83,000	74,000
Other Non Operating Income Expenses	16,000	11,000
Special Income Charges	0	9,000
Gain On Sale Of Ppe	0	9,000	248,000
Other Special Charges
Earnings From Equity Interest	53,000	51,000
Gain On Sale Of Security	14,000	3,000
Net Non Operating Interest Income Expense	-97,000	-104,000
Interest Expense Non Operating	99,000	106,000
Interest Income Non Operating	2,000	2,000
Operating Income	1,133,000	1,094,000
Operating Expense	884,000	837,000
Selling General And Administration	884,000	837,000
General And Administrative Expense	884,000		782,421
Other Gand A	884,000		782,421
Insurance And Claims
Gross Profit	2,017,000	1,931,000
Cost Of Revenue	3,469,000	3,243,000
Total Revenue	5,486,000	5,174,000
Operating Revenue	5,486,000	5,174,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	55,000	54,800
Ordinary Shares Number	126,086	126,217
Share Issued	181,086	181,017
Net Debt	9,106,000	9,443,000
Total Debt	9,582,000	9,870,000
Tangible Book Value	-3,912,000	-4,448,000
Invested Capital	24,191,000	24,181,000
Working Capital	871,000	1,107,000
Net Tangible Assets	-3,912,000	-4,448,000
Common Stock Equity	14,609,000	14,311,000
Total Capitalization	21,378,000	21,795,000
Total Equity Gross Minority Interest	14,617,000	14,320,000
Minority Interest	8,000	9,000
Stockholders Equity	14,609,000	14,311,000
Gains Losses Not Affecting Retained Earnings	-980,000	-903,000
Other Equity Adjustments	-980,000	-903,000
Treasury Stock	8,975,000	8,671,000
Retained Earnings	23,649,000	22,972,000
Additional Paid In Capital	824,000	822,000
Capital Stock	91,000	91,000
Common Stock	91,000	91,000
Total Liabilities Net Minority Interest	16,062,000	16,191,000
Total Non Current Liabilities Net Minority Interest	9,325,000	10,105,000
Other Non Current Liabilities	717,000	772,000
Employee Benefits	233,000	239,000
Non Current Pension And Other Postretirement Benefit Plans	233,000	239,000
Non Current Deferred Liabilities	1,606,000	1,610,000
Non Current Deferred Taxes Liabilities	1,606,000	1,610,000
Long Term Debt And Capital Lease Obligation	6,769,000	7,484,000
Long Term Debt	6,769,000	7,484,000
Current Liabilities	6,737,000	6,086,000
Other Current Liabilities	835,000	937,000
Current Debt And Capital Lease Obligation	2,813,000	2,386,000
Current Debt	2,813,000	2,386,000
Other Current Borrowings
Current Notes Payable
Payables And Accrued Expenses	3,089,000	2,763,000
Current Accrued Expenses	560,000	488,000
Payables	2,529,000	2,275,000
Total Tax Payable	233,000	221,000
Accounts Payable	2,296,000	2,054,000
Total Assets	30,679,000	30,511,000
Total Non Current Assets	23,071,000	23,318,000
Other Non Current Assets	1,324,000	1,322,000
Non Current Deferred Assets	267,000	271,000
Non Current Deferred Taxes Assets	267,000	271,000
Investments And Advances			1,263,190
Goodwill And Other Intangible Assets	18,521,000	18,759,000
Other Intangible Assets	7,425,000	7,610,000
Goodwill	11,096,000	11,149,000
Net PPE	2,959,000	2,966,000
Accumulated Depreciation	-4,609,000	-4,574,000
Gross PPE	7,568,000	7,540,000
Construction In Progress
Machinery Furniture Equipment
Buildings And Improvements
Land And Improvements
Current Assets	7,608,000	7,193,000
Other Current Assets	193,000	183,000
Prepaid Assets	292,000	367,000
Inventory	3,179,000	3,152,000
Finished Goods	864,000	880,000
Work In Process	1,671,000	1,623,000
Raw Materials	644,000	649,000
Receivables	3,468,000	3,064,000
Other Receivables	238,000	217,000
Notes Receivable	69,000	90,000
Accounts Receivable	3,161,000	2,757,000
Allowance For Doubtful Accounts Receivable	-8,000	-7,000
Gross Accounts Receivable	3,169,000	2,764,000
Cash Cash Equivalents And Short Term Investments	476,000	427,000
Cash And Cash Equivalents	476,000	427,000

Cash Flow

	2026	2025	2024
Free Cash Flow	881,000	768,000
Repurchase Of Capital Stock	-340,000	-145,000
Repayment Of Debt	-2,000	-11,000
Issuance Of Debt	323,000
Capital Expenditure	-103,000	-94,000
End Cash Position	476,000	427,000
Beginning Cash Position	427,000	473,000
Effect Of Exchange Rate Changes	-1,000	-5,000
Changes In Cash	50,000	-41,000
Financing Cash Flow	-841,000	-835,000
Cash Flow From Continuing Financing Activities	-841,000	-835,000
Net Other Financing Charges	0		0
Proceeds From Stock Option Exercised			939
Cash Dividends Paid	-227,000	-228,000
Common Stock Dividend Paid	-227,000	-228,000
Net Common Stock Issuance	-340,000	-145,000
Common Stock Payments	-340,000	-145,000
Net Issuance Payments Of Debt	-274,000	-461,000
Net Short Term Debt Issuance	-272,000	-462,000
Short Term Debt Payments
Net Long Term Debt Issuance	-2,000	1,000
Long Term Debt Payments	-2,000	-11,000
Long Term Debt Issuance	0
Investing Cash Flow	-93,000	-68,000
Cash Flow From Continuing Investing Activities	-93,000	-68,000
Net Other Investing Changes	6,000	-1,000
Net Business Purchase And Sale	-1,000	1,000
Sale Of Business	0		621,298
Purchase Of Business	-1,000	0	0
Net PPE Purchase And Sale	5,000	26,000
Sale Of PPE	5,000	26,000
Capital Expenditure Reported	-103,000	-94,000
Operating Cash Flow	984,000	862,000
Cash Flow From Continuing Operating Activities	984,000	862,000
Change In Working Capital	-184,000	-226,000
Change In Other Working Capital	-2,000	-12,000
Change In Other Current Liabilities	-115,000	-143,000
Change In Other Current Assets	-25,000	-23,000
Change In Payables And Accrued Expense	325,000	-59,000
Change In Accrued Expense	75,000	66,000
Change In Payable	250,000	-125,000
Change In Account Payable	250,000	-97,000
Change In Tax Payable			-81,583
Change In Income Tax Payable			-81,583
Change In Prepaid Assets	75,000	-70,000
Change In Inventory	-43,000	-73,000
Change In Receivables	-399,000	154,000
Changes In Account Receivables	-399,000	154,000
Other Non Cash Items	-18,000	-3,000
Stock Based Compensation	37,000	28,000
Deferred Tax	2,000	-12,000
Deferred Income Tax	2,000	-12,000
Depreciation Amortization Depletion	235,000	233,000
Depreciation And Amortization	235,000	233,000
Amortization Cash Flow	148,000	148,000
Amortization Of Intangibles	148,000	148,000
Depreciation	87,000	85,000
Operating Gains Losses	8,000	-3,000
Net Foreign Currency Exchange Gain Loss			-31,797
Gain Loss On Sale Of PPE		-9,000	1,000
Gain Loss On Sale Of Business	0		-250,060
Net Income From Continuing Operations	904,000	845,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $5.0B ▲ $5.5B +10.6%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 36.9% ▲ 36.8% -0.1pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 22.8% ▲ 20.7% -2.2pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 19.4% ▼ 16.5% -2.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$5.5B/qtr (≈$21.9B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.13x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$881M

vs Positive

Operating Cash Flow

$984M

Latest quarter · Buffett's cash reality check

ROIC

3.7%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

8.2x

Net Assets: $14.6B

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

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)

6.2%

Weak — poor returns on equity

Return on Assets (ROA)

2.9%

Fair — average asset utilization

Share Buybacks (Latest Year)

$1.8B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-2.9% YoY

Debt is declining — management is deleveraging

Leadership Team

Jennifer Parmentier

Chairman of the Board & CEO

Age 58

Pay: $6,063,164

0.671% of net income

Andrew Ross

President & COO

Age 58

Pay: $2,864,723

0.317% of net income

Todd Leombruno

Executive VP & CFO

Age 55

Pay: $2,792,907

0.309% of net income

Patrick Scott

VP & President of Fluid Connectors Group

Age 46

Pay: $1,933,650

0.214% of net income

Jeffrey Miller

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	7.93%	10,000,883
State Street Corporation	7.41%	9,342,841
Vanguard Capital Management LLC	6.50%	8,200,693
Procyon Advisors, LLC	4.02%	5,069,302
FMR, LLC	3.21%	4,047,417
Bank of America Corporation	2.76%	3,483,595
Geode Capital Management, LLC	2.32%	2,919,044
Morgan Stanley	2.03%	2,554,356

Risk Analysis

Beta (Market Risk)

1.14

Moderate volatility — moves slightly more than market

Short Interest

1.3% 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: $646.51 Current: $953.27 High: $1,034.96

Currently at 79% of 52-week range

Parker-Hannifin Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis