PH
Parker-Hannifin Corporation
Industrials · Specialty Industrial Machinery · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong profitability metrics — 21.9% operating margin, 17.8% net margin, and 12.0% return on assets — and a well-supported, growing dividend anchored the composite score at 63.7/100.
- The mixed growth profile, with flat revenue (-0.4%) offset by robust net income growth (+24.1%), produced a mid-range growth score that reflects the divergence between top-line and bottom-line performance.
- The absence of any macro theme assignment meant the company received no thematic score contribution, which structurally limited the composite total.
Why Not Higher
- Revenue was essentially flat in FY2025 (-0.4%), preventing a higher growth score despite the strong bottom-line expansion, and the model penalized the lack of top-line momentum.
- The company is not assigned to any of the 24 tracked macro themes, so it received no theme-based score contribution, which weighed on the overall composite.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue declined slightly from FY2024 to FY2025, falling from $19,930,000,000 to $19,850,000,000 (-0.4%), while net income rose from $2,845,000,000 to $3,532,000,000 (+24.1%) and diluted EPS grew from $21.84 to $27.12 (+24.2%) over the same period.
The model appears to have rewarded the strong bottom-line expansion but penalized the modest top-line contraction, resulting in a mid-range score that reflects a mixed growth profile where profitability improved significantly even as revenue was essentially flat.
In FY2025, Parker-Hannifin posted a net margin of 17.8%, an operating margin of 21.9%, and a return on assets of 12.0%, reflecting broad-based profitability across multiple measures.
The model rewarded the combination of a high operating margin, a healthy net margin, and a double-digit return on assets in FY2025, all of which indicate efficient conversion of revenue into profit and effective use of the company's asset base.
In FY2025, Parker-Hannifin reported a debt-to-equity ratio of 0.55 and total assets of $29,494,000,000.
The model likely rewarded the relatively moderate leverage indicated by the FY2025 debt-to-equity ratio of 0.55, while the large total asset base provides context for the company's scale; the score may reflect data gaps in other health metrics that limited a higher result.
Revenue trended from $5,243,000,000 in 2025Q4 down to $5,084,000,000 in 2026Q1 and $5,174,000,000 in 2026Q2 before recovering to $5,486,000,000 in 2026Q3, while operating income remained relatively stable across those quarters at $1,189,000,000, $1,183,000,000, $1,182,000,000, and $1,229,000,000 respectively.
The model appears to have recognized the recovery in both revenue and net income by 2026Q3 as a positive momentum signal, while the overall stability of operating income across the four quarters supported a solid but not top-tier score.
Parker-Hannifin has grown its dividends per share each year, from $5.47 in FY2023 to $6.07 in FY2024 and $6.69 in FY2025, while maintaining a dividend payout ratio of 24.4% in FY2025.
The model rewarded the consistent multi-year dividend growth trend alongside a conservative payout ratio in FY2025, which suggests the dividend is well-covered by earnings and has room to continue growing, characteristics typically associated with high dividend scores.
Parker-Hannifin is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the company did not receive any theme-based score contribution under the model's current methodology; this is a neutral characteristic of the model's classification rather than a reflection of the company's business quality.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Parker-Hannifin delivered a mixed but broadly positive FY2025 profile: revenue was essentially flat at $19,850,000,000 (-0.4% year-over-year), yet net income surged 24.1% to $3,532,000,000 and diluted EPS rose 24.2% to $27.12, reflecting strong margin expansion. The company posted an operating margin of 21.9%, a net margin of 17.8%, and a return on assets of 12.0% in FY2025, underscoring efficient operations. Financial health appears sound with a debt-to-equity ratio of 0.55, and the dividend track record is compelling, with dividends per share growing from $5.47 in FY2023 to $6.69 in FY2025 at a conservative 24.4% payout ratio. The absence of a macro theme assignment tempered the composite score, which stands at 63.7 out of 100, earning a Low risk rating and a Dividend Candidate label.
Plain English
Parker-Hannifin barely grew its sales last year but made a lot more profit per dollar of revenue, keeps raising its dividend every year while only paying out about a quarter of its earnings, and carries a manageable debt load — making it look like a steady, income-friendly company even if it's not a high-growth story right now.
Bull Case vs. Bear Case
Bull Case
- Profitability is a clear strength: Parker-Hannifin achieved a 21.9% operating margin and 17.8% net margin in FY2025, alongside a 12.0% return on assets, demonstrating efficient conversion of revenue into profit.
- The dividend profile is attractive and well-covered: dividends per share have grown every year from $5.47 in FY2023 to $6.07 in FY2024 and $6.69 in FY2025, while the payout ratio remained a conservative 24.4%, leaving ample room for continued dividend growth.
- Recent quarterly momentum is improving: revenue recovered from $5,084,000,000 in 2026Q1 to $5,486,000,000 in 2026Q3, and operating income held steady and then rose to $1,229,000,000 in 2026Q3, suggesting operational resilience.
Bear Case
- Top-line growth is absent: revenue declined slightly from $19,930,000,000 in FY2024 to $19,850,000,000 in FY2025 (-0.4%), indicating the company is not currently expanding its revenue base.
- The model assigns no macro theme to Parker-Hannifin, meaning the company does not benefit from any thematic tailwind score under the current framework, which weighed on the composite result.
- While the debt-to-equity ratio of 0.55 is moderate, the factor explanation notes potential data gaps in other health metrics that may have limited a higher financial health score, leaving some uncertainty about the full picture.
What Could Change the Picture
Bullish Triggers
- A return to meaningful revenue growth — reversing the current flat-to-declining top-line trend — combined with the already-strong margin profile could significantly strengthen the growth score.
- Assignment to one or more of the model's tracked macro themes could provide an additional score contribution that is currently absent.
Bearish Triggers
- If revenue contraction deepens beyond the current modest -0.4% decline, it could signal structural demand weakness that would pressure the growth and momentum scores.
- A meaningful increase in the debt-to-equity ratio from its current 0.55 level, or deterioration in other financial health metrics, could raise leverage concerns and reduce the financial health score.
Risk Profile
Low RiskParker-Hannifin's Low risk rating is supported by a moderate debt-to-equity ratio of 0.55 and a large total asset base of $29,494,000,000 in FY2025, suggesting manageable leverage. Quarterly operating income has been notably stable, ranging narrowly from $1,182,000,000 to $1,229,000,000 across the last four reported quarters, indicating consistent operational execution.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.