PHParker Hannifin

$962.72+28% 1Y

$962.72

$712.1752 weeks$1.1K

Is the business good?

Good

A genuinely good business: 8 of 9 health tests passed, earnings fully cash-backed (1.1×), and margins widening.

3 good, 1 neutral

Fundamental health (F-score)8 / 9SEC EDGAR · Jun 30, 2026

High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.

Profits arrive as cash1.08×derived · Jun 30, 2026

Operating profit is fully backed by cash.

Margin direction, 3 years+5.7 pts

Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.

Where ROE comes from12% ROA

Margin-driven, fat margins on slower asset turns. ROE 25% = margin × turnover × leverage.

Unless marked, from derived.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

FCF conversionmiddle of the market

Leverage (Debt/EBITDA)better than 69% of the market

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

Parker Hannifin earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.

16%

Return on invested capital · cost of capital 9.0% · 7.4 points above what the capital costs: growth creates value

Operating margin: 24%
Operating margin · Specialty Industrial Machinery median 14% · 12 months to Q4 2026
Cash conversion: 1.08×
Cash conversion · 1.01× a year ago · operating cash flow covers the operating profit after tax
Gross margin: 38%
Gross margin

Details›

Gross margin12 months to Q4 2026: 38%
Operating margin12 months to Q4 2026: 24%
Net margin12 months to Q4 2026: 17%
Free cash flow margin: 18%
Revenue, trailing twelve months: $21.5B
Free cash flow, trailing twelve months: $3.90B
Net income, trailing twelve months: $3.65B
Return on invested capitaloperating profit after tax ÷ debt + equity − cash: 16%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.

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