NYSE:PH
$65.11
(3/19 4:00PM)
-0.7%
| Open | $65.75 |
Mkt Cap | $10.5 Billion |
| High | $66.41 |
52Wk High | $65.91 |
| Low | $64.89 |
52Wk Low | $33.13 |
| Volume | 1.7 Million |
Avg Vol 10D | 1.1 Million |
PH Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at PH through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.29x and 0.79x respectively.
Utilizing this range we can see that PH’s current Price to Sales per share ratio of 0.86x is significantly below its average levels historically. In fact, with a current price of $63.61, PH is a full 18% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for PH.
PH Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of PH, Ockham views their current Cash Earnings as significantly above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for PH, the current level of Cash Earnings compared to its historical levels helps identify where PH is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 13.78 and a historical low Cash Earnings per share ratio of 8.30, an investor can relate where value becomes optimal.
Just recall that when a stock's price, as in the cases of PH, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for PH's Price to Cash Earnings ratio is 41% below the current ratio of 15.67. That is not an insignificant amount, and diminishes our overall outlook on PH. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.
PH Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In PH’s case, the estimated annual dividend is $1.00 resulting in a current dividend yield of 1.57%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from PH against the historic high and low levels over the past 10 years. The highest dividend yield from PH over this period was 3.63% while the lowest dividend yield was 0.97% With that range in mind, PH’s current dividend yield is a full 31.74% below its median dividend yield historically. This is a negative from our perspective.
Blue Chips and PH on Power Lunch
In a recent discussion of economic bellwethers and their market leading position, Power Lunch talked about PH.
The Motley Fool CAPS data suggests that investors believe Parker-Hannifin Corporation will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on PH. Check the news on this stock because there is a catalyst that has allowed this stock to advance 6.23% today. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, PH has been less covered in the news compared to the rest of our universe of stocks.
“… Let's move over to PARKER-HANNIFIN. This is an industrial bellwether indicating that the industrial space may improve up 5% at 61. 25. …”
Fox Business: Topics Include Emerging Markets and PH
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of PH on Fox Business was in relation to emerging markets.
They have mines that need to be modernized. You see the same in russia. The export-driven economies need the heavy machinery. PARKER HANNIFIN and a number of u.S. Companies are the best at the world in that. With the weak dollar, it makes competing with the foreign competition easier. Now, the story that doesn't get a lot of legs for a long period of time but for now, that's an important characteristics and the companies will do well. We think they come out of the economic downturn as some of the leadership just because of global demand.
“… he foreign competition easier. Now, the story that doesn't get a lot of legs for a long period of time but for now, that's an important characteristics and the companies will do well. We think they come out of the economic downturn as some of the leadership just because of global demand. …”
Parker-Hannifin Corporation (PH) Discussed on CNBC's Mad Money
Parker-Hannifin Corporation is in the news. Find out how this impacts PH trading on Ockham Research.
Student, I have exxonmobil, coca-cola, e-bay, PARKER HANNIFIN and johnson & johnson. >> PARKER HANNIFIN, anything is possible. I like this as a technology let's just call it an industrial exxonmobil raised its dividend
“… Student, I have exxonmobil, coca-cola, e-bay, PARKER HANNIFIN and johnson & johnson. >> PARKER HANNIFIN, anything is possible. I like this as a technology let's just call it an industrial exxonmobil raised its dividend …”
Parker-Hannifin Corporation (PH) Discussed on CNBC's Mad Money
Parker-Hannifin Corporation is in the news. Find out how this impacts PH trading on Ockham Research.
Companies with bad results over companies with good results and it favors inconsistent companies that can deliver monumental earnings growth if you get a mild recovery. That is PARKER-HANNIFIN and in order to buy the big boys, you have to sell the consistent growes and that's proshthor and proctor doesn't have the potential to dazzle the street. Stay with cramer.
“… ent growes and that's proshthor and proctor doesn't have the potential to dazzle the street. Stay with cramer. …”
Parker-Hannifin Corporation (PH) Discussed on CNBC's Mad Money
Parker-Hannifin Corporation is in the news. Find out how this impacts PH trading on Ockham Research.
Big money thinks that pg is the stock you buy when the world's going to end and only the professor professors, short sellers and media people still believe that. What else is PARKER-HANNIFIN doing right now? Aerospace market pretty resilient down just 12%. Remember a lot of the guys are down 25, 30 and they were down 35% and climate control is down
“… . Remember a lot of the guys are down 25, 30 and they were down 35% and climate control is down …”
Parker-Hannifin Corporation (PH) Discussed on CNBC's Mad Money
Parker-Hannifin Corporation is in the news. Find out how this impacts PH trading on Ockham Research.
Ph refused to be defeated by the business cycle and now it's back in its favor. Gross margins should explode as sales tick up while costs go down and that's what could happen with PARKER-HANNIFIN. The year over year comparisons and what we live for on wall street will be humongo. Now, let's get all medical. If you want to be a
“… l street will be humongo. Now, let's get all medical. If you want to be a …”
Parker-Hannifin Corporation (PH) Discussed on CNBC's Mad Money
Parker-Hannifin Corporation is in the news. Find out how this impacts PH trading on Ockham Research.
Explosive year-over-year number. Next year procter & gamble will post results similar to this year and probably a couple of pennies better and enough to make investors say, not bad, but PARKER-HANNIFIN, they don't see an earnings disappointment. They think if this is how ph looks now, a number from the heart of the depression, then it's still pretty decent
“… k if this is how ph looks now, a number from the heart of the depression, then it's still pretty decent …”
Parker-Hannifin Corporation (PH) Discussed on CNBC's Mad Money
Parker-Hannifin Corporation is in the news. Find out how this impacts PH trading on Ockham Research.
Proctor is doing nothing. On wall street companies that are in great shape have been shunned since that bottom in the economy and those that are doing badly, well, and I think PARKER-HANNIFIN is doing badly. They're embraced, so I have to question myself. Dc comic style, have we entered bizarro world, me like them ugly
“… Dc comic style, have we entered bizarro world, me like them ugly …”
Parker-Hannifin Corporation (PH) Discussed on CNBC's Mad Money
Parker-Hannifin Corporation is in the news. Find out how this impacts PH trading on Ockham Research.
You know what's going to happen. You expect it to be whipped and any sane university would become a total pariah. So what happened? People now can't get enough PARKER-HANNIFIN. It just keeps going higher and higher and higher. Jackie wilson style. The stock up two points just meanwhile, procter & gamble
“… ck up two points just meanwhile, procter & gamble …”
Parker-Hannifin Corporation (PH) Discussed on CNBC's Mad Money
Parker-Hannifin Corporation is in the news. Find out how this impacts PH trading on Ockham Research.
Despised! My time at the ohio state university got me thinking about two ohio companies. PARKER-HANNIFIN, ph, which makes aerospace parts and industrial components of metal bender and procter & gamble, pg. Two stocks that are just a key stroke away from each other, but are nevertheless, worlds apart. A week ago PARKER-HANNIFIN missed the street's estimates when it reported its latest quarter or slashed earnings guidance for the year. Normally when the company misses
“… ach other, but are nevertheless, worlds apart. A week ago PARKER-HANNIFIN missed the street's estimates when it reported its latest quarter or slashed earnings guidance for the year. Normally when the company misses …”