Previous Close | $719.15 |
AI Value | $317.63 |
Upside potential | -56% |
Parker-Hannifin Corporation (PH) is a global leader in motion and control technologies, serving diverse industrial and aerospace markets. The company operates through two segments: Diversified Industrial (85% of FY2023 revenue) and Aerospace Systems (15%). Its core products include hydraulic, pneumatic, and electromechanical systems, filtration solutions, and fluid connectors. Parker-Hannifin holds a dominant position in niche markets like aerospace actuation and industrial filtration, with over 50% of revenue derived from recurring aftermarket sales. Competitive advantages include its extensive distribution network (3,000+ locations), vertical integration in precision manufacturing, and long-term contracts with defense/aerospace OEMs like Boeing and Airbus. The 2022 acquisition of Meggitt (UK) for $7.1 billion significantly expanded its aerospace exposure.
1,300+ active patents, R&D focus on electrification (e-Pack hydraulic systems) and aerospace composites. $450M annual R&D spend (2.5% of revenue).
Parker-Hannifin offers a balanced risk/reward profile as a diversified industrial with aerospace upside. The Meggitt acquisition provides long-term growth in defense/aerospace but comes with integration risks. Strong free cash flow (5% yield) supports dividend growth (65 consecutive years of increases). Near-term headwinds include cyclical industrial demand and debt servicing costs, but the company's technology moat and aftermarket resilience justify a long-term hold. Suitable for investors seeking industrial exposure with 8-10% annualized return potential.
FY2023 10-K, Investor Day Presentation (May 2023), Bloomberg Aerospace Supply Chain Analysis, S&P Capital IQ Competitor Benchmarking
Historical valuation data is not available at this time.