Parker-Hannifin: Don't Fear The Downside, Take Advantage

Oct. 12, 2022 6:54 PM ETParker-Hannifin Corporation (PH)MMM

Summary

  • For an aging, slow-growing industrial company, PH has done well to improve their profitability.
  • This performance improvement is a reason for the elevated valuation that is at risk due to a variety of headwinds.
  • While temporary, I think those willing to be quick on their feet should wait for the downward pressures to subside.

Fort Wayne - Circa April 2017: Parker Hannifin Precision Cooling Systems Factory. Parker is listed on the NYSE as PH I

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Introduction

I have been assessing the market of late through a lens that the old stalwarts of the US industrial complex are weakening. This led me to my conclusion that 3M (MMM) is unlikely to provide any

Company summary profile

PH Investor Presentation

A summary of PH compared to industrial peers.

PH Investor Presentation

Revenue data including growth rates.

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A summary of growth rates for PH

Seeking Alpha

Current profitability data

Koyfin

EBITDA expectations for the future

PH Investor Presentation

A summary of PH's balance sheet data

Koyfin

A summary of recent acquisitions

PH Investor Presentation

A summary of PH's historical leverage compared to the share price.

Koyfin

A summary of current financials adjusted with currency effects

PH Investor Presentation

A summary of future ways to improve performance

PH Investor Presentation

A summary of the future expected revenue mix

PH Investor Presentation

Valuation of PH

Koyfin

This article was written by

Hello, I am an individual investor with an interest in bringing diversification of viewpoints to stock analysis and investing. This brings to point the Japanese proverb 他山之石 -ta-zan-no-ishi- which translates to "another-mountain's-rock" and denotes the importance of diversifying the sources of your knowledge in order to gain the advantage of multiple perspectives. Further, a rock represents the foundational aspects of the world a mountain supports, signifying the importance of understanding the simple fundamentals in order to succeed. As such, I cover a wide range of assets in order to find the best of every type of investing. Please consider following so we can continue down this path of knowledge together, and hopefully, I am able to provide some novel insights for you with every article. Thanks for reading.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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