# Parker-Hannifin (PH.US)

Canonical: https://gigainvestors.com/s/PH

Analysis as of: 2026-10-16T07:31:10.708Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $961.75 per share; close as of 2026-10-15.

Estimated value: low $315.76 per share, central $359.22 per share, high $417.07 per share. Buy at or below the central value $359.22 per share. Valuation as of 2026-10-16T07:31:10.708Z; scenarios are not confidence intervals.

Expected annual return: 5.6% at the stated quote. About 5.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.17×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.12×

- FY2018: 0.14×

- FY2019: 0.15×

- FY2020: 0.15×

- FY2021: 0.17×

- FY2022: 0.18×

- FY2023: 0.17×

- FY2024: 0.20×

- FY2025: 0.20×

- FY2026: 0.22×

### moat: pass

- ROIC, median of available years: 29.0%

- ROIC, second-lowest year: 23.2%

- Typical minus recent gross margin: -9.4 pp

- Typical gross margin (annual median): 27.4%

- Recent gross margin (lower of latest and 3-year median): 36.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 13.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 23.2%

- FY2018: 29.4%

- FY2019: 39.1%

- FY2020: 26.1%

- FY2021: 29.3%

- FY2022: 37.3%

- FY2023: 20.5%

- FY2024: 25.5%

- FY2025: 28.7%

- FY2026: 30.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.17×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $16B

- Net income, five-year total: $13B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 1.0 pp

- Working capital / revenue, final three-year average: 20.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.26×

- FY2023: 1.21×

- FY2024: 1.19×

- FY2025: 1.13×

- FY2026: 1.13×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 29.4% vs 28.7%

- Per-share earnings: 7.25 to 27.12 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.7%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: $104B

- Cumulative retained earnings: $14B

- Diluted shares, 10-year annual growth: -0.7%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 17.9%

- Per-share value change: $19.87

- Per-share value, starting three-year median: $7.25

- Per-share value, ending three-year median: $27.12

- Buybacks concentrated in cheaper years (correlation): 0.20

- Average buyback yield: 1.4%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $17B

- Cumulative net income, 10 years: $20B

- ROIC, first three-year median: 29.4%

- ROIC, last three-year median: 28.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: $7.25

- FY2018: $7.83

- FY2019: $11.48

- FY2020: $9.26

- FY2021: $13.35

- FY2022: $10.09

- FY2023: $16.03

- FY2024: $21.84

- FY2025: $27.12

- FY2026: $28.49

### accounting: pass

- Sloan accruals: -2.3%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.20×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.19×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.0%

- FY2018: -3.5%

- FY2019: -1.2%

- FY2020: -4.4%

- FY2021: -4.1%

- FY2022: -4.3%

- FY2023: -3.0%

- FY2024: -1.8%

- FY2025: -0.8%

- FY2026: -2.3%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 13.3% a year for ten years · "Guidance - Aerospace Organic Growth: Raised to 12% for the year." (finance.yahoo.com, May 2025) · sales +8.3%

Story as of 2026-10-16T09:59:23.891Z; price observation 2026-10-15.

Price needs cash profits to grow 13.3% a year for ten years

- 2025-05-01: Parker-Hannifin Q3 Earnings Beat, Aerospace Systems Sales Up Y/Y ([finance.yahoo.com](https://finance.yahoo.com/news/parker-hannifin-q3-earnings-beat-163400476.html))

- 2025-08-07: Parker-Hannifin tops fourth-quarter results on aerospace parts demand ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/parker-hannifin-tops-fourth-quarter-123454742.html))

- 2025-11-07: Why Parker-Hannifin (PH) Is Up 7.7% After Record Sales and Raised Full-Year Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/why-parker-hannifin-ph-7-200739627.html))

- 2026-01-29: Parker Hannifin Boosts FY26 Outlook - Update ([nasdaq.com](https://www.nasdaq.com/articles/parker-hannifin-boosts-fy26-outlook-update))

- 2026-10-07: Parker Hannifin (PH) Could Be 15% Undervalued On Record Sales And Fresh Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/parker-hannifin-ph-could-15-091806454.html))

### Sales · FY2025–2026

sales +8.3%; source https://www.sec.gov/Archives/edgar/data/76334/000007633426000105/ph-20260630.htm; observed 2026-08-21.

- FY2017: $12B 

- FY2018: $14B 

- FY2019: $14B 

- FY2020: $14B 

- FY2021: $14B 

- FY2022: $16B 

- FY2023: $19B 

- FY2024: $20B 

- FY2025: $20B 

- FY2026: $21B 

### Gross margin · FY2026

gross margin 37.7%; source https://www.sec.gov/Archives/edgar/data/76334/000007633426000105/ph-20260630.htm; observed 2026-08-21.

- FY2017: 24.0% 

- FY2018: 25.3% 

- FY2019: 25.5% 

- FY2020: 25.4% 

- FY2021: 27.2% 

- FY2022: 27.7% 

- FY2023: 33.9% 

- FY2024: 35.9% 

- FY2025: 36.9% 

- FY2026: 37.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are USD 21.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/76334/000007633426000105/ph-20260630.htm (filed 2026-08-21); FY2026: revenue 21499000000; grossProfit 8102000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PH.US: Parker-Hannifin Corporation engages in the manufacture and sale of 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, EMEA, Asia Pacific, and Latin America. It operates through two segments: Diversified Industrial and Aerospace Systems. The company 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.

### Why customers stay

Margins ranged from 35.9% to 37.7% during 2024–26; it earns 29% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2024: grossProfit / revenue = 35.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2025: grossProfit / revenue = 36.9%.

- Source: https://www.sec.gov/Archives/edgar/data/76334/000007633426000105/ph-20260630.htm (filed 2026-08-21); FY2026: grossProfit / revenue = 37.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); 10-year return on capital observations [[2017,0.23237843467063599],[2018,0.29365224408554075],[2019,0.39146121513547816],[2020,0.26142650499030395],[2021,0.2927641098519302],[2022,0.37323333839231704],[2023,0.20527444751295287],[2024,0.25482155554747515],[2025,0.28711292072013206],[2026,0.30094024817978793]]; median 0.2899385152860311. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 1.3 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2017: growth capex 0; upkeep 203748000; owner earnings 1134893000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2018: growth capex 0; upkeep 247667000; owner earnings 1279219000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2019: growth capex 0; upkeep 195089000; owner earnings 1753464000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2020: growth capex 0; upkeep 232591000; owner earnings 1506910000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2021: growth capex 0; upkeep 209957000; owner earnings 2131533000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2022: growth capex 0; upkeep 230044000; owner earnings 1657325000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2023: growth capex 0; upkeep 380747000; owner earnings 2520318000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2024: growth capex 0; upkeep 400112000; owner earnings 3371234000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); FY2025: growth capex 0; upkeep 435000000; owner earnings 4003000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/76334/000007633426000105/ph-20260630.htm (filed 2026-08-21); FY2026: growth capex 0; upkeep 459000000; owner earnings 4127000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); Dividend observations: [[2017,345380000],[2018,365288000],[2019,412468000],[2020,453838000],[2021,475174000],[2022,569855000],[2023,704054000],[2024,782048000],[2025,861000000],[2026,936000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/76334/000007633426000105/ph-20260630.htm (filed 2026-08-21); FY2026: cash repurchases 1262000000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PH.US SharesStats.PercentInsiders = 0.182 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 13.3% yearly over ten years; actual growth was 16.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-21); Ten-year compound average after fade. Initial solved rate 0.17968631174168037. Price 961.75; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 7.043050889226479 → FY2026 32.21701795472287. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $122.75 per share

- 2016-11: $138.93 per share

- 2016-12: $140.00 per share

- 2017-01: $147.13 per share

- 2017-02: $154.84 per share

- 2017-03: $160.32 per share

- 2017-04: $160.80 per share

- 2017-05: $157.47 per share

- 2017-06: $159.82 per share

- 2017-07: $165.98 per share

- 2017-08: $160.89 per share

- 2017-09: $175.02 per share

- 2017-10: $182.61 per share

- 2017-11: $187.49 per share

- 2017-12: $199.58 per share

- 2018-01: $201.42 per share

- 2018-02: $178.47 per share

- 2018-03: $171.03 per share

- 2018-04: $164.62 per share

- 2018-05: $170.90 per share

- 2018-06: $155.85 per share

- 2018-07: $169.05 per share

- 2018-08: $175.60 per share

- 2018-09: $183.93 per share

- 2018-10: $151.63 per share

- 2018-11: $172.04 per share

- 2018-12: $149.14 per share

- 2019-01: $164.81 per share

- 2019-02: $176.16 per share

- 2019-03: $171.62 per share

- 2019-04: $181.08 per share

- 2019-05: $152.32 per share

- 2019-06: $170.01 per share

- 2019-07: $175.08 per share

- 2019-08: $165.77 per share

- 2019-09: $180.61 per share

- 2019-10: $183.49 per share

- 2019-11: $198.79 per share

- 2019-12: $205.82 per share

- 2020-01: $195.69 per share

- 2020-02: $184.77 per share

- 2020-03: $129.73 per share

- 2020-04: $158.12 per share

- 2020-05: $179.97 per share

- 2020-06: $183.27 per share

- 2020-07: $178.92 per share

- 2020-08: $206.01 per share

- 2020-09: $202.34 per share

- 2020-10: $208.36 per share

- 2020-11: $267.26 per share

- 2020-12: $272.41 per share

- 2021-01: $264.61 per share

- 2021-02: $286.96 per share

- 2021-03: $315.43 per share

- 2021-04: $313.81 per share

- 2021-05: $308.15 per share

- 2021-06: $307.11 per share

- 2021-07: $312.03 per share

- 2021-08: $296.67 per share

- 2021-09: $279.62 per share

- 2021-10: $296.59 per share

- 2021-11: $302.06 per share

- 2021-12: $318.12 per share

- 2022-01: $310.01 per share

- 2022-02: $296.39 per share

- 2022-03: $283.76 per share

- 2022-04: $270.82 per share

- 2022-05: $272.17 per share

- 2022-06: $246.05 per share

- 2022-07: $289.09 per share

- 2022-08: $265.00 per share

- 2022-09: $242.31 per share

- 2022-10: $290.62 per share

- 2022-11: $298.94 per share

- 2022-12: $291.00 per share

- 2023-01: $326.00 per share

- 2023-02: $351.85 per share

- 2023-03: $336.11 per share

- 2023-04: $324.88 per share

- 2023-05: $320.44 per share

- 2023-06: $390.04 per share

- 2023-07: $410.01 per share

- 2023-08: $416.90 per share

- 2023-09: $389.52 per share

- 2023-10: $368.91 per share

- 2023-11: $433.18 per share

- 2023-12: $460.70 per share

- 2024-01: $464.50 per share

- 2024-02: $535.45 per share

- 2024-03: $555.79 per share

- 2024-04: $544.91 per share

- 2024-05: $531.52 per share

- 2024-06: $505.81 per share

- 2024-07: $561.16 per share

- 2024-08: $600.20 per share

- 2024-09: $631.82 per share

- 2024-10: $634.07 per share

- 2024-11: $702.90 per share

- 2024-12: $636.03 per share

- 2025-01: $707.05 per share

- 2025-02: $668.51 per share

- 2025-03: $607.85 per share

- 2025-04: $605.06 per share

- 2025-05: $664.70 per share

- 2025-06: $698.47 per share

- 2025-07: $731.90 per share

- 2025-08: $759.35 per share

- 2025-09: $758.15 per share

- 2025-10: $772.83 per share

- 2025-11: $861.70 per share

- 2025-12: $878.96 per share

- 2026-01: $935.84 per share

- 2026-02: $1,009.18 per share

- 2026-03: $895.24 per share

- 2026-04: $909.42 per share

- 2026-05: $844.63 per share

- 2026-06: $978.12 per share

- 2026-07: $976.53 per share

- 2026-08: $979.44 per share

- 2026-09: $955.42 per share

- 2026-10: $953.44 per share

## Annual estimated value (USD per share)

- FY2017: low $93.72 per share, central $106.12 per share, high $122.64 per share

- FY2018: low $125.24 per share, central $162.68 per share, high $189.68 per share

- FY2019: low $164.53 per share, central $229.28 per share, high $265.39 per share

- FY2020: low $140.30 per share, central $191.96 per share, high $224.50 per share

- FY2021: low $169.00 per share, central $231.15 per share, high $270.44 per share

- FY2022: low $195.11 per share, central $215.29 per share, high $242.15 per share

- FY2023: low $197.22 per share, central $224.30 per share, high $260.35 per share

- FY2024: low $221.35 per share, central $251.85 per share, high $292.44 per share

- FY2025: low $248.10 per share, central $282.24 per share, high $327.68 per share

- FY2026: low $310.86 per share, central $353.64 per share, high $410.60 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/76334/000007633426000105/ph-20260630.htm); period 2026-06-30, filed 2026-08-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.