Parker-Hannifin Corporation (PH) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Industrial - Machinery
EV/EBITDA
↑
24.78
↑+59% vs avg
5yr avg: 15.60
30Y Low5.8·High20.2
P/FCF
↑
34.10
↑+70% vs avg
5yr avg: 20.05
30Y Low8.1·High36.1
P/B Ratio
↑
8.58
↑+69% vs avg
5yr avg: 5.08
30Y Low1.6·High6.6
ROE
↑
27.4%
↓+21% vs avg
5yr avg: 22.7%
30Y Low5%·High27%
Debt/EBITDA
↓
1.94
↓-26% vs avg
5yr avg: 2.63
30Y Low0.8·High3.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
PH Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Parker-Hannifin Corporation trades at 33.3x earnings, 38% above its 5-year average of 24.1x, sitting at the 97th percentile of its historical range. Compared to the Industrials sector median P/E of 25.9x, the stock trades at a premium of 29%. On a free-cash-flow basis, the stock trades at 34.1x P/FCF, 70% above the 5-year average of 20.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $113.9B | $90.9B | $65.9B | $50.6B | $32.1B | $40.2B | $23.8B | $22.4B | $21.1B | $21.7B | $14.8B |
| Enterprise Value | $123.1B | $100.1B | $76.4B | $63.1B | $37.1B | $46.3B | $31.8B | $26.3B | $25.2B | $26.7B | $16.6B |
| P/E Ratio → | 33.28 | 25.75 | 23.16 | 24.32 | 24.39 | 23.00 | 19.73 | 14.81 | 19.90 | 22.04 | 18.34 |
| P/S Ratio | 5.74 | 4.58 | 3.31 | 2.66 | 2.02 | 2.80 | 1.74 | 1.56 | 1.48 | 1.80 | 1.30 |
| P/B Ratio | 8.58 | 6.64 | 5.45 | 4.90 | 3.62 | 4.78 | 3.81 | 3.75 | 3.60 | 4.11 | 3.23 |
| P/FCF | 34.10 | 27.22 | 22.07 | 19.48 | 14.50 | 16.99 | 12.94 | 14.60 | 15.65 | 19.75 | 13.94 |
| P/OCF | 30.17 | 24.08 | 19.47 | 16.99 | 13.14 | 15.60 | 11.49 | 12.95 | 13.22 | 16.66 | 12.22 |
P/E links to full P/E history page with 30-year chart
PH EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Parker-Hannifin Corporation's enterprise value stands at 24.8x EBITDA, 59% above its 5-year average of 15.6x. The Industrials sector median is 13.9x, placing the stock at a 78% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.04 | 3.83 | 3.31 | 2.34 | 3.22 | 2.32 | 1.84 | 1.76 | 2.22 | 1.46 |
| EV / EBITDA | 24.78 | 20.16 | 15.83 | 15.63 | 10.97 | 15.43 | 12.60 | 10.27 | 10.18 | 14.76 | 10.35 |
| EV / EBIT | 30.32 | 22.17 | 18.64 | 19.41 | 19.87 | 18.53 | 17.47 | 12.38 | 13.17 | 17.87 | 13.27 |
| EV / FCF | — | 29.97 | 25.61 | 24.29 | 16.79 | 19.56 | 17.30 | 17.13 | 18.71 | 24.30 | 15.65 |
PH Profitability
Margins and return-on-capital ratios measuring operating efficiency
Parker-Hannifin Corporation earns an operating margin of 20.5%, significantly above the Industrials sector average of 4.9%. Operating margins have expanded from 16.9% to 20.5% over the past 3 years, signaling improving operational efficiency. ROE of 27.4% indicates solid capital efficiency, compared to the sector median of 8.2%. ROIC of 13.4% represents solid returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.9% | 36.9% | 35.9% | 33.9% | 27.7% | 27.2% | 25.4% | 25.5% | 25.3% | 24.0% | 23.2% |
| Operating Margin | 20.5% | 20.5% | 19.6% | 16.9% | 17.7% | 16.7% | 14.5% | 14.8% | 14.1% | 12.1% | 11.4% |
| Net Profit Margin | 17.8% | 17.8% | 14.3% | 10.9% | 8.3% | 12.2% | 8.8% | 10.6% | 7.4% | 8.2% | 7.1% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 27.4% | 27.4% | 25.4% | 21.7% | 15.2% | 23.8% | 19.7% | 25.6% | 19.1% | 20.0% | 16.7% |
| ROA | 12.0% | 12.0% | 9.6% | 7.5% | 5.7% | 8.7% | 6.4% | 9.2% | 6.9% | 7.1% | 6.6% |
| ROIC | 13.4% | 13.4% | 12.9% | 13.1% | 14.9% | 12.5% | 12.4% | 16.0% | 14.9% | 13.1% | 14.7% |
| ROCE | 17.8% | 17.8% | 17.6% | 15.2% | 15.1% | 14.2% | 12.8% | 16.0% | 16.6% | 13.3% | 13.2% |
PH Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Parker-Hannifin Corporation carries a Debt/EBITDA ratio of 1.9x, which is manageable (39% below the sector average of 3.2x). Net debt stands at $9.2B ($9.6B total debt minus $467M cash). Interest coverage of 11.0x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.70 | 0.70 | 0.91 | 1.26 | 1.32 | 0.81 | 1.39 | 1.19 | 0.85 | 1.11 | 0.66 |
| Debt / EBITDA | 1.94 | 1.94 | 2.27 | 3.22 | 3.46 | 2.27 | 3.45 | 2.78 | 2.00 | 3.25 | 1.89 |
| Net Debt / Equity | — | 0.67 | 0.87 | 1.21 | 0.57 | 0.72 | 1.28 | 0.65 | 0.70 | 0.95 | 0.40 |
| Net Debt / EBITDA | 1.85 | 1.85 | 2.19 | 3.10 | 1.50 | 2.03 | 3.17 | 1.52 | 1.67 | 2.76 | 1.13 |
| Debt / FCF | — | 2.75 | 3.54 | 4.81 | 2.29 | 2.57 | 4.36 | 2.53 | 3.07 | 4.55 | 1.71 |
| Interest Coverage | 11.04 | 11.04 | 8.10 | 5.67 | 7.32 | 9.99 | 5.91 | 11.17 | 8.96 | 9.18 | 9.17 |
PH Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.19x means Parker-Hannifin Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.71x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 0.88x to 1.19x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.19 | 1.19 | 0.93 | 0.88 | 2.06 | 1.81 | 1.55 | 2.43 | 1.59 | 1.41 | 2.20 |
| Quick Ratio | 0.71 | 0.71 | 0.55 | 0.51 | 1.68 | 1.14 | 0.98 | 1.90 | 1.08 | 0.95 | 1.71 |
| Cash Ratio | 0.08 | 0.08 | 0.06 | 0.06 | 1.14 | 0.25 | 0.24 | 1.07 | 0.27 | 0.27 | 0.89 |
| Asset Turnover | — | 0.67 | 0.68 | 0.64 | 0.61 | 0.71 | 0.69 | 0.81 | 0.93 | 0.78 | 0.94 |
| Inventory Turnover | 4.42 | 4.42 | 4.58 | 4.33 | 5.18 | 5.00 | 5.63 | 6.36 | 6.59 | 5.90 | 7.44 |
| Days Sales Outstanding | — | 62.10 | 61.06 | 62.42 | 67.05 | 64.72 | 56.77 | 62.82 | 63.13 | 66.32 | 58.67 |
PH Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Parker-Hannifin Corporation returns 2.3% to shareholders annually — split between a 0.7% dividend yield and 1.5% buyback yield. The payout ratio of 24.4% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 0.9% | 1.2% | 1.4% | 1.8% | 1.2% | 1.9% | 1.8% | 1.7% | 1.6% | 2.3% |
| Payout Ratio | 24.4% | 24.4% | 27.5% | 33.8% | 43.3% | 27.2% | 37.8% | 27.3% | 34.4% | 35.1% | 42.4% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 3.9% | 4.3% | 4.1% | 4.1% | 4.3% | 5.1% | 6.8% | 5.0% | 4.5% | 5.5% |
| FCF Yield | 2.9% | 3.7% | 4.5% | 5.1% | 6.9% | 5.9% | 7.7% | 6.9% | 6.4% | 5.1% | 7.2% |
| Buyback Yield | 1.5% | 1.9% | 0.5% | 0.6% | 1.4% | 0.5% | 0.9% | 3.8% | 1.8% | 1.6% | 4.0% |
| Total Shareholder Yield | 2.3% | 2.9% | 1.7% | 2.0% | 3.2% | 1.7% | 2.8% | 5.7% | 3.5% | 3.2% | 6.3% |
| Shares Outstanding | — | $130M | $130M | $130M | $130M | $131M | $130M | $132M | $135M | $136M | $137M |
Peer Comparison
Compare PH with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 PHYou | $114B | 33.3 | 24.8 | 34.1 | 36.9% | 20.5% | 27.4% | 13.4% | 1.9 |
 EMR | $83B | 36.6 | 18.9 | 31.2 | 52.8% | 19.6% | 9.6% | 8.2% | 2.7 |
 ETN | $163B | 40.3 | 29.1 | 36.6 | 37.6% | 19.1% | 21.5% | 13.6% | 1.9 |
 HON | $137B | 29.5 | 20.0 | 25.5 | 36.9% | 17.5% | 27.3% | 12.6% | 4.3 |
 ROK | $52B | 59.9 | 31.4 | 38.0 | 48.1% | 17.1% | 23.5% | 15.1% | 2.1 |
 IR | $31B | 54.2 | 17.8 | 25.2 | 38.5% | 18.5% | 5.7% | 7.8% | 2.5 |
 AME | $55B | 37.7 | 30.4 | 33.1 | 36.4% | 26.2% | 14.6% | 12.1% | 1.2 |
 HUBB | $27B | 30.4 | 21.2 | 30.5 | 35.5% | 20.8% | 24.8% | 17.1% | 1.9 |
 FELE | $4B | 31.1 | 14.0 | 23.0 | 35.5% | 12.7% | 11.3% | 14.7% | 0.8 |
 GNRC | $16B | 99.4 | 34.5 | 58.5 | 38.3% | 6.9% | 6.2% | 5.9% | 2.8 |
 NDSN | $16B | 33.7 | 20.8 | 24.2 | 55.2% | 25.5% | 16.2% | 10.5% | 2.4 |
| Industrials Median | — | 25.9 | 13.9 | 20.6 | 32.8% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonPH — Frequently Asked Questions
Quick answers to the most common questions about buying PH stock.
What is Parker-Hannifin Corporation's P/E ratio?
Parker-Hannifin Corporation's current P/E ratio is 33.3x. The historical average is 18.2x. This places it at the 97th percentile of its historical range.
What is Parker-Hannifin Corporation's EV/EBITDA?
Parker-Hannifin Corporation's current EV/EBITDA is 24.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.0x.
What is Parker-Hannifin Corporation's ROE?
Parker-Hannifin Corporation's return on equity (ROE) is 27.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.0%.
Is PH stock overvalued?
Based on historical data, Parker-Hannifin Corporation is trading at a P/E of 33.3x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Parker-Hannifin Corporation's dividend yield?
Parker-Hannifin Corporation's current dividend yield is 0.73% with a payout ratio of 24.4%.
What are Parker-Hannifin Corporation's profit margins?
Parker-Hannifin Corporation has 36.9% gross margin and 20.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Parker-Hannifin Corporation have?
Parker-Hannifin Corporation's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.