Parker Hannifin Corporation: 4Q26 preview: likely to clear the EPS and guidance bar, but the “how” will matter

研报英文原文证据摘录

Parker Hannifin Corporation: 4Q26 preview: likely to clear the EPS and guidance bar, but the “how” will matter

iQprofile SM Parker Hannifin Corporation

iQmethod SM – Bus Performance* Company Sector

(US$ Millions) 2024A 2025A 2026E 2027E 2028E Industrials/Multi-Industry

Return on Capital Employed 14.1% 15.3% 16.4% 17.1% 18.7%

Return on Equity 29.6% 27.6% 27.8% 27.0% 26.5%

Operating Margin 23.3% 24.6% 25.8% 26.4% 26.9% Company Description Free Cash Flow 2,984 3,341 3,578 3,753 4,063

Parker Hannifin is an industrial supplier of hydraulics,

motion and fluid control systems and components to

iQmethod SM – Quality of Earnings* diversified end markets. It operates under three segments:

(US$ Millions) 2024A 2025A 2026E 2027E 2028E Industrial - North America, Industrial - International, and

Cash Realization Ratio 1.0x 1.1x 1.0x 1.0x 1.0x Aerospace.

Asset Replacement Ratio 0.4x 0.5x 0.5x 0.6x 0.7x

Tax Rate 21.8% 20.4% 21.0% 22.5% 22.5%

Net Debt-to-Equity Ratio 83.9% 64.4% 47.8% 33.7% 21.4% Investment Rationale

Interest Cover 9.2x 11.9x 13.5x 16.1x 24.0x

We rate PH Buy. Over the past several decades, PH has

materially improved its returns and reduced cyclicality

Income Statement Data (Jun) through operational excellence and strategic M&A. Parker

(US$ Millions) 2024A 2025A 2026E 2027E 2028E offers growth and returns similar to best in class peers, but

Sales 19,930 19,850 21,318 22,602 23,857 trades at a material discount. Within the portfolio,

% Change 4.5% -0.4% 7.4% 6.0% 5.6% Meggitt/Aerospace offer margin of safety for the company

Gross Profit 7,172 7,347 8,046 8,740 9,356 in an uncertain macro environment. We are also

% Change 9.2% 2.4% 9.5% 8.6% 7.1% incrementally less bearish on industrial destocking given

EBITDA 4,990 5,272 5,817 6,223 6,621

lead times remain elevated.