Is the business good?
How good a business is PH?
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 15% · 12 months to Q4 2026
- Cash conversion
- 1.07×
Cash conversion · 0.95× a year ago · every dollar of reported profit arrived as cash, and more
- Gross margin
- 38%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 17% |
| FY2022 | 19% |
| FY2023 | 18% |
| FY2024 | 20% |
| FY2025 | 22% |
| FY2026 | 24% |
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 from the cash flow statement.
Specialty Industrial Machinery
Ranks #5 of 44 by Smart Score