Parker-Hannifin Corporation [NYSE:PH]: Analyst Rating and Earnings
Pro stock traders frequently make sure to pay attention what expert market analysts are saying about a potential stock buy. Regarding Parker-Hannifin Corporation [PH] right now, the most recent ratings from Wall St. analysts that we can see right now is regarding the quarter that’s slated to end in June. On average, stock market experts give PH an Outperform rating. The average 12-month price forecast for this stock is $182.50, with the high estimate being $220.00, the low estimate being $150.00 and the median estimate amounting to $180.00. This is compared to its latest closing price of $151.88.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Parker-Hannifin Corporation [PH] is sitting at 2.41. This is compared to 1 month ago, when its average rating was 2.41.
For the quarter ending in Sep-18 Parker-Hannifin Corporation [PH] generated $3.48 billion in sales. That’s 1.80% lower than the average estimate of $3.54 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for the next scheduled financial results to be made public for this company, which are scheduled to be released on Thu 7 Feb (In 30 Days).
Fundamental Analysis of Parker-Hannifin Corporation [PH]
Now let’s turn to look at profitability: with a current Operating Margin for Parker-Hannifin Corporation [PH] sitting at +13.73 and its Gross Margin at +25.06, this company’s Net Margin is now 8.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 17.89, and its Return on Invested Capital has reached 13.30%. its Return on Equity is 19.08, and its Return on Assets is 6.89. These metrics all suggest that Parker-Hannifin Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Parker-Hannifin Corporation [PH] has generated a Total Debt to Total Equity ratio of 84.59. Similarly, its Total Debt to Total Capital is 45.83, while its Total Debt to Total Assets stands at 32.36. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 73.70, and its Long-Term Debt to Total Capital is 39.92. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 9.76 and its Total Debt to EBITDA Value is 2.04. The Enterprise Value to Sales for this firm is now 1.65, and its Total Debt to Enterprise Value stands at 0.20. Parker-Hannifin Corporation [PH] has a Price to Book Ratio of 3.52, a Price to Cash Flow Ratio of 13.19 and P/E Ratio of 18.21. These metrics all suggest that Parker-Hannifin Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Parker-Hannifin Corporation [PH] earns $250,173 for each employee under its payroll. Income works out to $18,555 per employee. Similarly, this company’s Receivables Turnover is 6.14 and its Total Asset Turnover is 0.93. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.08 and its Current Ratio is 1.59. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Parker-Hannifin Corporation [PH] has 132.36M shares outstanding, amounting to a total market cap of $20.52B. Its stock price has been found in the range of 140.82 to 212.80. At its current price, it has moved by -27.14% from its 52-week high, and it has moved 10.11% from its 52-week low.
This stock’s Beta value is currently 1.46, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 51.96. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Parker-Hannifin Corporation [PH] a Reliable Buy?
Shares of Parker-Hannifin Corporation [PH], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.