Company Overview
Parker-Hannifin is an industrial machinery company serving a broad set of end markets with engineered components and systems. The business is built around supplying mission-critical parts that fit into larger customer equipment and processes. Its scale shows up in a large public market footprint, with an equity value around USD 113 billion. Operations are positioned as a long-running industrial platform rather than a single-product story.
Analysis of recent data
FundamentalsFor the year ended June 30, 2025 (reported in USD), revenue was USD 19.85 billion and net income was USD 3.53 billion, with revenue essentially flat year over year at -0.4%. Profitability metrics remain elevated on a trailing basis, with a 37.43% gross margin, 21.05% operating margin, and a 17.29% net profit margin alongside 25.65% ROE.
On the balance sheet side, cash of USD 467 million sits against total debt of USD 3.58 billion. Depreciation and amortization was USD 354 million, while capital spending was reported at USD 20 million for the same period.
Valuation
DCF / MultiplesAt USD 895.24, the stock price sits above the DCF range that runs from USD 435.09 in a weaker outcome through USD 617.35 at the center to USD 813.89 in a stronger outcome. The headline multiples match that posture, with a 31.95 P/E and 25.86 EV/EBITDA placing the pricing at the higher end of what the cash-flow range supports.
Conclusion
TakeawayThe stock is priced for the business to stay very clean. Balance-sheet strength is real, but it is already being paid for. A slip in margins would matter more than revenue growth. Debt is manageable, yet the price leaves little room for surprises. This setup looks more like overpricing than a neglected compounder.