NYSE: PH · Industrial Machinery & Supplies & Components
Parker Hannifin
Parker Hannifin, based in Cleveland, Ohio, is a global leader in motion and control technologies — hydraulics, pneumatics, electromechanical, filtration, fluid connectors, seals and aerospace systems. Its Diversified Industrial segment ($14,438 million, 67% of fiscal 2026 sales) sells engineered components to industrial OEMs and distributors, and its Aerospace Systems segment ($7,061 million, 33%), expanded with the Meggitt acquisition, sells airframe and engine components and systems plus aftermarket parts and maintenance for commercial and defense aircraft. Fiscal 2026 (year ended June 30, 2026) net sales rose 8% to $21,499 million and net income was $3,649 million, with backlog of $12.8 billion. It bought Curtis Instruments in September 2025 and, on August 13, 2026, Filtration Group for $9.25 billion in cash, financed with term loans and $2.4 billion plus €2.025 billion of senior notes; it also agreed to buy CIRCOR’s aerospace business. The annual dividend rate is $8.00 per share.
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 31, 2026 02:23 (SEC EDGAR) · Source 10-K filed: August 21, 2026
Built on10-K FY2026 · filed 2026-08-2110-Q (quarter ended 2026-09-30) · filed 2026-11-05Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 8.4%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 23.6%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +7.2 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 1.5x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.20x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 30.8x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 1.08
Higher than 51% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 66% of 311 non-financial companies
Latest fiscal year (FY2026)
Higher than 65% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 44% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 23% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$910.78close on 2026-11-04
Market cap$114.76B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 30.8x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 7.4x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 22.6x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 3.4%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 0.8%
At FY2026 year-end: 34.3x
Earnings: trailing 12 months to 2026-09-30
At FY2026 year-end: 8.0x
Book value at FY2026 year-end
At FY2026 year-end: 24.2x
EBITDA for FY2026
At FY2026 year-end: 3.2%
Free cash flow for FY2026
Dividends per share for FY2026
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$5.08B → $5.99B (vs. a year earlier)↑ +17.9%$5.08B → $5.99B (vs. a year earlier)
- Operating margin23.3% → 23.5% (vs. a year earlier)↑ +0.3 pts23.3% → 23.5% (vs. a year earlier)
- Net income$808M → $884M (vs. a year earlier)↑ +9.4%$808M → $884M (vs. a year earlier)
- Diluted EPS$6.29 → $6.92 (vs. a year earlier)↑ +10.0%$6.29 → $6.92 (vs. a year earlier)
- Cash$501M → $711M (vs. previous quarter-end)↑ +41.9%$501M → $711M (vs. previous quarter-end)
- Long-term debt$7.47B → $14.64B (vs. previous quarter-end)↑ +95.9%$7.47B → $14.64B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Nov 5, 2026.
Management outlook ↑ Raised
Raised its full-year outlook. Source sentence
With strong first quarter performance and increased order rates, we are raising our full year fiscal 2027 guidance for organic sales growth, adjusted segment operating margin, adjusted earnings per share and free cash flow.”
Key changes
Q1 sales up 18% to a record $6.0B. Source sentence
Sales increased 18% to a record $6.0 billion; organic sales increased 11.5%; acquisitions added 7%
Net income $0.9B, up 9%. Source sentence
Net income was $0.9 billion, an increase of 9%, or $1.1 billion adjusted, an increase of 23%
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- Parker-Hannifin Corp
- Headquarters
- CLEVELAND, OH
- Incorporated in
- Ohio
- Fiscal year end
- 06/30
- Exchange & ticker
- NYSE: PH
- Industry
- Industrial Machinery & Supplies & Components
- CIK
- 76334
- Website
- https://www.parker.com/ ↗
Workforce (as of FY2026 year-end)
Employees
59,850
Source: Form 10-K (FY2026) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q2 FY2027
Quarter end: December 2026. In past years, Q2 results were released 29–32 days after quarter end (Jan 29, 2026; Jan 30, 2025; Feb 1, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around June 30.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 29–39 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q1 FY2027 | Sep 30, 2026 | Nov 5, 2026 (+36 days) | Nov 5, 2026 10-Q (+36 days) |
| Q4 FY2026 | Jun 30, 2026 | Aug 6, 2026 (+37 days) | Aug 21, 2026 10-K (+52 days) |
| Q3 FY2026 | Mar 31, 2026 | Apr 30, 2026 (+30 days) | May 1, 2026 10-Q (+31 days) |
| Q2 FY2026 | Dec 31, 2025 | Jan 29, 2026 (+29 days) | Jan 30, 2026 10-Q (+30 days) |
| Q1 FY2026 | Sep 30, 2025 | Nov 6, 2025 (+37 days) | Nov 7, 2025 10-Q (+38 days) |
| Q4 FY2025 | Jun 30, 2025 | Aug 7, 2025 (+38 days) | Aug 22, 2025 10-K (+53 days) |
| Q3 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 6, 2025 10-Q (+36 days) |
| Q2 FY2025 | Dec 31, 2024 | Jan 30, 2025 (+30 days) | Jan 31, 2025 10-Q (+31 days) |
| Q1 FY2025 | Sep 30, 2024 | Oct 31, 2024 (+31 days) | Nov 5, 2024 10-Q (+36 days) |
| Q4 FY2024 | Jun 30, 2024 | Aug 8, 2024 (+39 days) | Aug 22, 2024 10-K (+53 days) |
| Q3 FY2024 | Mar 31, 2024 | May 2, 2024 (+32 days) | May 3, 2024 10-Q (+33 days) |
| Q2 FY2024 | Dec 31, 2023 | Feb 1, 2024 (+32 days) | Feb 6, 2024 10-Q (+37 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Diversified Industrial
Motion and fluid control
Hydraulic, pneumatic and electromechanical components, fluid connectors and seals.
Diversified Industrial
Filtration
Filtration products, expanded with Filtration Group (August 2026).
Diversified Industrial
Electrification
Motor controllers from Curtis Instruments (acquired September 2025).
Aerospace Systems
Aerospace systems
Airframe and engine components and systems for commercial transport, regional, defense, helicopters and business jets, plus aftermarket parts and maintenance.
From the Form 10-K, FY2026, year ended 2026-06-30.
U.S. and worldwide share of flagship products/services
Parker says it is one of the market leaders in most major markets for its significant Diversified Industrial and Aerospace Systems products but gives no market-share figures.
07
Recent strategic focusSite analysis
Recent developments.
Fiscal 2026
Net sales $21,499M (+8%); net income $3,649M; diluted EPS $28.48; backlog $12.8B.
Source: Form 10-K (FY2026, year ended 2026-06-30)
Filtration Group closed
Completed August 13, 2026 for $9.25B in cash.
Source: Form 8-K (2026-08-13) — Item 2.01 Completion of Filtration Group acquisition
Financing
$2.4B and €2.025B of senior notes completed September 14, 2026.
Source: Form 8-K (2026-09-14) — Item 8.01 $2.4B and €2.025B senior notes
Capex ÷ D&A (FY2026)
1.30x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$459M ÷ $353M = 1.30x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2026)
1.2%
formularesearch & development expense ÷ revenue × 100
e.g.$267M ÷ $21,499M × 100 = 1.2%
M&A spend (6-year total)
$8.16B
Latest year: $1.01B
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $210M in FY2021 to $459M in FY2026
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-21
08
Key figures at a glanceFrom SEC data
FY2021–FY2026, 6 years.
Revenue (FY2026)
$21.5B
As reported in the 10-K
Revenue CAGR (5 years)
+8.4%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($21,499M ÷ $14,348M) ^ (1÷5) − 1 = 8.4%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2026)
23.6%▲favorable
+6.4pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$5,068M ÷ $21,499M × 100 = 23.6%
ROE (FY2026)
25.1%▲favorable
6-year average: 22.6%
As reported in the 10-K
P/B (FY2026 end)
8.00x
formulafiscal year-end closing price ÷ book value per share
e.g.$978.12 ÷ $122.25 = 8.00x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2026 end)
24.2x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($123,243M + $8,472M − $501M) ÷ ($5,068M + $353M) = 24.2x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +8.4% a year over 5 years (strong growth)
From $14.35B in FY2021 to $21.5B in FY2026. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 17.1% → 23.6%
How much operating profit is left per $100 of revenue. It moved +6.4 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 49.9% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 22.6% over 6 years (latest: 25.1%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- Filtration Group
- Curtis Instruments
- CIRCOR Aerospace
07 · what it does
Key activities
- Industrial component manufacturing
- Aerospace systems design and production
- Aftermarket and MRO
06 · what it draws on
Key resources
- About 59,850 team members (June 30, 2026)
- Broad technology portfolio (hydraulics, pneumatics, filtration, seals)
- Global distributor network
02 · why customers buy
Value propositions
- Highly engineered motion and control components; competes on quality, innovation, customer experience and manufacturing.
04 · how it keeps them
Customer relationships
- Aftermarket parts and service; backlog of $12.8 billion at June 30, 2026.
03 · how it reaches them
Channels
- Direct sales to OEMs and a large distribution network.
01 · who it serves
Customer segments
- Industrial OEMs and distributors
- Commercial and military aircraft OEMs and operators
09 · where money goes
Cost structure
FY2026, share of revenue ($21.5B)
- Cost of revenue62.3%
- Research & development1.2%
- Selling, general & administrative16.1%
Operating profit left: 23.6% of revenue. Depreciation & amortization (inside the costs above): $353M. Capital spending: $459M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Product sales (OEM and aftermarket)
- Aerospace aftermarket services
Value propositions, channels and customer relationships: Form 10-K (FY2026)
Designs and makes highly engineered components and systems sold to OEMs and through a large distribution network, plus aftermarket parts and service; aerospace content on aircraft platforms brings long-lived aftermarket revenue.
01 what it draws on
Inputs & resources
- About 59,850 team members (June 30, 2026)
- Broad technology portfolio (hydraulics, pneumatics, filtration, seals)
- Global distributor network
02 what it does
Activities
- Industrial component manufacturing
- Aerospace systems design and production
- Aftermarket and MRO
03 who it serves
Customers
- Industrial OEMs and distributors
- Commercial and military aircraft OEMs and operators
04 how money comes in
How it earns
- Product sales (OEM and aftermarket)
- Aerospace aftermarket services
How the business makes money
- Diversified Industrial 67%, Aerospace Systems 33% of fiscal 2026 sales.
- Backlog $12.8B at June 30, 2026.
- No country outside the U.S. exceeds 10% of sales.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Parker received IEEPA tariff refunds and needs cybersecurity certification for defense work.
Trade & export rules
IEEPA tariff refunds
Recognized an $84M cost-of-sales reduction in Q4 fiscal 2026 from IEEPA tariff refunds.
Supports the businessTouches: Inputs & resourcesSource: Form 10-K (FY2026)
Government as customer
Government contracts
Failing required cybersecurity certifications could affect government work.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2026)
Environmental rules
Environmental cleanup (Superfund)
Designated a potentially responsible party under the federal Superfund law.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2026)
Revenue by segment (FY2026)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Diversified Industrial
14,438 (67%)Aerospace Systems
7,061 (33%)
Source: Form 10-K (FY2026, year ended 2026-06-30) Total net sales $21,499M. Segment operating income: Diversified Industrial $3,440M, Aerospace Systems $1,833M.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2026)
North America — 67% of revenue
Revenue by country / region (FY2026)
Unit: $M — bar length = revenue, (%) = share of total company revenue
North America
14,386 (67%)EMEA
4,178 (19%)Asia Pacific
2,711 (13%)Latin America
224 (1%)
Source: Form 10-K (FY2026, year ended 2026-06-30) — Note on net sales by region Total $21,499M.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Pending or recent acquisition
Filtration Group
Acquired August 13, 2026 for a cash purchase price of $9.25 billion (cash-free, debt-free).
Source: Form 8-K (2026-08-13) — Item 2.01 Completion of Filtration Group acquisition
Pending or recent acquisition
Curtis Instruments
Acquired September 18, 2025.
Pending or recent acquisition
CIRCOR Aerospace
Definitive agreement (May 2026) to acquire CIRCOR International’s commercial and defense aerospace business.
13
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Industrial OEMs, distributors and aerospace customers.
Named by the company
No customer concentration is disclosed as material; no country other than the U.S. exceeds 10% of sales.
Suppliers
Metals, components and electronics suppliers.
Named by the company
No supplier is named.
14
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K names primary global competitors for each segment and notes no single competitor competes across all its products.
Competitors named in the 10-K
Peer group the company chose
Fiscal 2026 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Diversified industrial and aerospace/defense companies (2026 proxy).
- 3Msite ↗
- Caterpillarsite ↗
- Cumminssite ↗
- Deere & Companysite ↗
- Doversite ↗
- Eatonsite ↗
- Emersonsite ↗
- Flowservesite ↗
- Fortivesite ↗
- Honeywellsite ↗
- Illinois Tool Workssite ↗
- Ingersoll Randsite ↗
- ITTsite ↗
- Johnson Controls Internationalsite ↗
- Moogsite ↗
- RTXsite ↗
- Rockwell Automationsite ↗
- Textronsite ↗
- Trane Technologiessite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
15
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-21
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-21
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-21
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-21
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ | FY202610-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 14,348 | 15,862 | 19,065 | 19,930 | 19,850 | 21,499 |
| Operating income | 2,460 | 2,975 | 3,404 | 4,069 | 4,347 | 5,068 |
| Pretax income | 2,247 | 1,614 | 2,680 | 3,595 | 4,107 | 4,563 |
| Net income (attributable) | 1,746 | 1,316 | 2,083 | 2,844 | 3,532 | 3,649 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 10.6% | 20.2% | 4.5% | -0.4% | 8.3% |
| Operating margincalcoperating income ÷ revenue × 100 | 17.1% | 18.8% | 17.9% | 20.4% | 21.9% | 23.6% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 12.2% | 8.3% | 10.9% | 14.3% | 17.8% | 17.0% |
| Balance sheet ($M) | ||||||
| Total assets | 20,341 | 25,944 | 29,964 | 29,298 | 29,494 | 30,877 |
| Total equity | 8,414 | 8,860 | 10,338 | 12,081 | 13,691 | 15,413 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 6,585 | 11,458 | 12,571 | 10,512 | 9,301 | 8,472 |
| Equity ratio | 41.3% | 34.1% | 34.5% | 41.2% | 46.4% | 49.9% |
| ROE | 20.8% | 15.3% | 21.7% | 25.4% | 27.4% | 25.1% |
| Cash flow ($M) | ||||||
| Operating CF | 2,575 | 2,442 | 2,980 | 3,384 | 3,776 | 4,364 |
| Investing CF | -0 | -419 | -8,177 | -298 | 224 | -1,390 |
| Financing CF | -2,623 | 3,916 | -971 | -3,115 | -3,977 | -2,934 |
| Free cash flowcalccash flow from operations − capital expenditures | 2,365 | 2,212 | 2,599 | 2,984 | 3,341 | 3,905 |
| Cash and equivalents | 733 | 536 | 475 | 422 | 467 | 501 |
| Per share & other | ||||||
| EPS ($) | 13.35 | 10.09 | 16.04 | 21.84 | 27.12 | 28.48 |
| BVPS ($) | 65.03 | 68.88 | 80.41 | 93.87 | 108.07 | 122.25 |
| Dividend per share ($) | 3.67 | 4.42 | 5.47 | 6.07 | 6.69 | 7.40 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 27.5% | 43.8% | 34.1% | 27.8% | 24.7% | 26.0% |
| P/E (x) | 23.0 | 24.4 | 24.3 | 23.2 | 25.8 | 34.3 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 16.7 | 13.2 | 16.7 | 17.0 | 20.7 | 24.2 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 4.72 | 3.57 | 4.85 | 5.39 | 6.46 | 8.00 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $5.99B+17.9% | $1.41B+19.3% | $884M+9.4% | $6.92 |
| 2026-06-30 † | $5.76B+9.8% | $1.47B+24.0% | $1.09B+18.3% | — |
| 2026-03-31 | $5.49B+10.6% | $1.23B+10.9% | $904M-6.0% | $7.06 |
| 2025-12-31 | $5.17B+9.1% | $1.18B+19.2% | $845M-11.0% | $6.60 |
| 2025-09-30 | $5.08B | $1.18B | $808M | $6.29 |
| 2025-06-30 † | $5.24B | $1.19B | $923M | — |
| 2025-03-31 | $4.96B | $1.11B | $962M | $7.37 |
| 2024-12-31 | $4.74B | $992M | $949M | $7.25 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
16
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2026)
17.6%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$5,068M × (1 − 18.5%) ÷ $23,439M × 100 = 17.6%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
10.44%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $123.24B ÷ ($123.24B + $8.47B) = 93.6%
e.g.Debt weight: $8.47B ÷ ($123.24B + $8.47B) = 6.4%
e.g.WACC: 10.9% × 93.6% + 4.7% × (1 − 18.5%) × 6.4% = 10.44%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 8.6%–12.7% and ROIC − WACC runs +5.0 to +9.0 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 10.44% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 1.08 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 10.89%
- Cost of debt
- 4.73%
- Tax rate
- 18.5% (effective rate, FY2024–FY2026)
- Capital structure (equity : debt)
- 94% : 6%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 10.44%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 1.07 (price-derived adjusted beta. Raw β 1.11, R² 0.34, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 1.111 + 0.33 = 1.075
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 1.08 × 5.5% = 10.9%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
17
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
7.3%
Perpetual FCF growth: g = r − FCF ÷ EV = 10.4% − 3.2%
Past FCF growth (FY2021–FY2026)
+10.5%
Compound annual rate, 5 years
Past revenue growth (FY2021–FY2026)
+8.4%
Compound annual rate, 5 years
Inputs (FY2026): free cash flow $3.91B (operating CF − capex); enterprise value $122.73B = market cap $114.76B (latest close, 2026-11-04) + debt $8.47B − cash and short-term investments $501M; r = WACC of 10.4% using this page’s default assumptions (β 1.08, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$125.97B
FCF $3.91B ÷ (10.4% − 7.3%)
Theoretical ÷ actual enterprise value
1.03x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 8.4% | 9.4% | 10.4% | 11.4% | 12.4% |
|---|---|---|---|---|---|
| 0% | 0.38x | 0.34x | 0.31x | 0.28x | 0.26x |
| 2% | 0.50x | 0.43x | 0.38x | 0.34x | 0.31x |
| 4% | 0.72x | 0.59x | 0.50x | 0.43x | 0.38x |
| 6% | 1.33x | 0.94x | 0.72x | 0.59x | 0.50x |
| 8% | 7.95x | 2.27x | 1.33x | 0.94x | 0.72x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
18
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.37x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -2.4%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 111%
Most profit comes from core operations.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-21
Profit bridge (FY2026)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-21
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$4,364M ÷ $3,649M = 1.20x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$5,068M ÷ $4,563M × 100 = 111%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($2,910M + $3,170M) ÷ 2 ÷ $21,499M × 365 = 52 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($2,839M + $3,166M) ÷ 2 ÷ $13,397M × 365 = 82 days
termsInventory · Cost of revenue (COGS)
19
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 92.2%
- Directors & officers (shares)
- 0.4%
- Everyone else (est.)
- 7.4%
- Directors & officers (voting power)
- 0.4%
- Institutional-ownership rank
- 160 of 416
- Beta (adjusted)
- 1.08
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 38% of covered companies have more
above 1 = swings more than the market
- 116.2M shares reported by 1,976 13F filers ÷ 126.0M shares outstanding on 2026-07-31. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-09-18 (beneficial ownership table) · Form 10-K cover page (shares outstanding as of 2026-07-31)
20
Strengths & weaknessesSite analysis
Strengths
1. Margin expansion
Operating income rose from $2,460M (FY2021) to $5,068M (FY2026).
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
2. Growing aerospace
Aerospace Systems sales rose 14% to $7,061M in fiscal 2026.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
3. Market leadership
One of the market leaders in most major markets for its significant products.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
Weaknesses
1. Acquisition debt
Filtration Group ($9.25B) financed with new term loans and notes in 2026.
Evidence: Form 8-K (2026-09-14) — Item 8.01 $2.4B and €2.025B senior notes
2. Industrial cyclicality
Diversified Industrial depends on industrial production and capital spending.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
3. Integration load
Integrating Curtis, Filtration Group and CIRCOR Aerospace at once.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
21
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2026)
34.3x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2026)
0.76%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2026)
26%
Dividends per share ÷ diluted EPS
FCF yield (FY2026)
3.2%
(Operating CF − capex) ÷ market cap
1. Compounding earnings
EPS rose from $13.35 (FY2021) to $28.48 (FY2026).
- What has to hold
- Margins and aerospace keep improving.
- The other side
- Industrial downturn.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
2. Dividend growth
Dividends per share rose from $3.67 (FY2021) to $7.40 (FY2026); $8.00 annual rate now.
- What has to hold
- Cash flow funds dividends and deals.
- The other side
- Higher debt.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
Fiscal years end June 30. No 10-Q yet for fiscal 2027.
22
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2026)
Cash & short-term investments ÷ debt due within a year
0.7x
$501M vs. $706M
Interest coverage (operating income ÷ interest expense)
12.6x
$5.07B vs. $401M
Free cash flow ÷ dividends paid
4.2x
$3.91B vs. $936M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -0.4% in FY2025 ($19.93B → $19.85B) | Yes, by FY2026 |
| Operating income | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2021–FY2026), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Profitable every year
Net income positive every year FY2021–FY2026; low $1,316M in FY2022.
Source: Form 10-K (FY2026, year ended 2026-06-30)
23
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Parker is involved in ordinary-course litigation including product liability, employee, class action and environmental matters, and expects no material adverse effect.
Company statement:
Based on Form 10-K (FY2026, year ended 2026-06-30) — Note on Contingencies, reviewed 2026-10-31. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
24
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Demand & macro
Industrial cycle
- Company disclosure (summarized from the 10-K)
- Demand from industrial OEMs and distributors follows the economy.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 2M&A & integration
Large acquisitions
- Company disclosure (summarized from the 10-K)
- Filtration Group and CIRCOR Aerospace integration.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- Competes with Bosch Rexroth, Danfoss, Eaton, Emerson, Honeywell, Safran and others.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Funding & liquidity
Leverage
- Company disclosure (summarized from the 10-K)
- Debt rose to fund the Filtration Group purchase.
- Company’s stated mitigation
- During 2026, we amended our revolving credit agreement to increase the total line of credit to $3.75 billion, and authorized a corresponding increase in the commercial paper program size to $3.75 billion.
- This site’s assessment
- Impact Med / Likelihood Med
- 5Geopolitics & supply chain
Trade and supply
- Company disclosure (summarized from the 10-K)
- Tariffs and supply disruptions.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
25
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (6)
We rely on a limited number of suppliers for certain critical components, such as specialty electronics, rare earths, specialty chemicals, aerospace super alloys and filtration media, and recent and planned acquisitions may increase our exposure to supply concentration risk. Any disruption in supply from these sources could require us to seek alternative suppliers, potentially at higher cost or with delays that could impact production schedules. Furthermore, our suppliers of component parts may significantly and quickly increase their prices in response to increases in
Increased public awareness and concern regarding environmental risks, including global climate change, may result in more international, regional and/or federal requirements or industry standards to reduce or mitigate global warming and other environmental risks. These regulations or standards could mandate more restrictive requirements, such as stricter limits on greenhouse gas emissions, than the voluntary commitments that we have made or require such changes on a more accelerated time frame. There continues to be a lack of consistent climate legislation across jurisdictions, which creates economic and regulatory uncertainty. Conversely, changes in governmental policy or leadership could lead to the rollback of existing climate regulations, potentially exposing the Company to stranded investments in compliance infrastructure or creating competitive disparities relative to companies…
We continually assess the strategic fit of our existing businesses and may divest or otherwise dispose of businesses that are deemed not to fit within our strategic plan or are not achieving the desired return on investment. Read more
These transactions pose risks and challenges that could negatively impact our business. For example, when we decide to sell or otherwise dispose of a business or assets, we may be unable to do so on satisfactory terms within our anticipated timeframe or at all, and even after reaching a definitive agreement to sell or dispose of a business, the sale is typically subject to satisfaction of pre-closing conditions which may not become satisfied. The divestiture process may also result in the disclosure of proprietary or competitively sensitive information to potential buyers, the incurrence of stranded costs that are not fully absorbed by the divested business, or the…
The timing and amount of the Company’s share repurchases are subject to a number of uncertainties and may affect our common stock price.
Share repurchases generally constitute a component of our capital allocation strategy. Read more
We have historically funded our share repurchases with free cash flow and short-term borrowings. The amount and timing of share repurchases will be based on a variety of factors and past activity is not necessarily indicative of future repurchase levels. Important factors that could impact our decisions to pursue share repurchases include market conditions, the price of our shares, the nature and timing of other investment opportunities, such as acquisitions, changes in our business strategy, the terms of our financing arrangements, our outlook as to the ability to obtain financing at attractive rates, the impact on our credit ratings, legal and regulatory restrictions (including under the terms of financing arrangements), the availability of domestic cash, and overall business expectations. There can…
For example, our Aerospace Systems Segment produces aircraft components and systems that are critical to flight safety, and accordingly, the adverse impact of product quality issues, actual or perceived, can be significant. Read more
Our operations expose us to potential liabilities for personal injury or death as a result of the failure of an aircraft product that we have designed or manufactured, and such liabilities could be substantial given the catastrophic nature of potential aerospace incidents. In addition, a product safety issue could result in mandatory or voluntary recalls, airworthiness directives from the Federal Aviation Administration or other regulatory authorities, grounding of aircraft or temporary cessation of operations by our airline customers. If personal injury or death were to be caused by one of our products, or if we were to otherwise fail to maintain a satisfactory…
No longer in the text (1)
In addition, worldwide focus on climate change issues has led to legislative and regulatory efforts to limit greenhouse gas emissions in the United States and in other countries in which we operate. Read more
Increased regulation of greenhouse gas emissions and other climate change concerns could subject us to additional costs and restrictions, including increased energy and raw material costs. We are not able to predict how such regulations would affect our business, operations or financial results, but increased regulation could have a material adverse effect on our business, operations and financial condition.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Aug 21, 2026 ↗ with the 10-K filed Aug 22, 2025 ↗.
26
What to watch going forwardSite analysis
- Filtration Group integration and synergies.
- Deleveraging after the deal.
- Aerospace aftermarket growth.
- CIRCOR Aerospace closing.
27
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 31, 2026 02:23 (SEC EDGAR) · Source 10-K filed: August 21, 2026
Built on10-K FY2026 · filed 2026-08-21Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Parker Hannifin’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.