Last Updated: 18 Sep 2024
Executive Summary
Parker-Hannifin Corporation (PH) is a leading manufacturer of motion and control technologies, with a market capitalization of $76.74 billion. The company has a strong financial performance, with an EBITDA of $4.9 billion and an EPS of $22.02. PH has a trailing PE ratio of 27.1 and a forward PE ratio of 22.32. The current stock price of $605.17 is below the analyst target price of $633.5.
Company Overview
Parker-Hannifin was founded in 1918 and is headquartered in Mayfield Heights, Ohio. The company has operations in over 50 countries and employs over 55,000 people. PH's products are used in a wide range of industries, including aerospace, automotive, construction, and energy.
Fundamental Analysis
PH has a strong financial position, with a debt-to-equity ratio of 0.44 and a current ratio of 1.26. The company's revenue and earnings have grown steadily in recent years. In the latest quarter, PH reported revenue of $19.93 billion and EPS of $22.02.
PH's return on assets (ROA) is 8.38% and its return on equity (ROE) is 25.4%. These ratios indicate that PH is using its assets and equity efficiently to generate profits.
Technical Analysis
PH's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 35.5, which indicates that the stock is oversold.
Short Term Outlook
The technical analysis suggests that PH's stock price is likely to continue to decline in the short term. The stock is trading below its moving averages and the RSI is oversold. However, the company's strong fundamentals could provide support for the stock price.
Long Term Outlook
The long-term outlook for PH is positive. The company has a strong market position, a diversified product portfolio, and a solid financial foundation. PH is well-positioned to benefit from the growing demand for motion and control technologies.
Analyst Recommendations
The majority of analysts have a buy rating on PH. The average analyst target price is $633.5, which represents a potential upside of 4.6% from the current stock price.
Conclusion
Parker-Hannifin Corporation is a leading manufacturer of motion and control technologies. The company has a strong financial position and a positive long-term outlook. However, the stock price is currently trading below its moving averages and the RSI is oversold. This suggests that the stock price is likely to continue to decline in the short term.
